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Definition of persons with management and control – changes coming 1 July 2023
Jason Roberts
Apr 22, 2023
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In the wake of the completion of the 2019 National Quality Framework (NQF) Review and the subsequent release of a set of recommendations designed to improve the NQF centre based services are being reminded of the next round of changes to be implemented on the 1 July 2023.
A comprehensive primer on changes expected to impact services can be found here. This piece examines the new changes to definitions of persons with management and control that are more likely to impact approved providers and their associates.
This article captures how existing approved providers identify who meets the definition, and the steps they must take to notify of any changes to persons with management and control (PMC).
The definition of persons with management and control
The definition is being expanded to ensure that regulatory authorities can assess the suitability of all persons that have significant influence, responsibility or authority over the delivery of the provider’s service(s).
Under the previous definition a PMC was:
- an officer of a body corporate- each member of the management committee of an association- each partner of the business a partnership- in any other case, a person who has the responsibility, alone or with others, for managing the delivery of the service.
Under the new definition a PMC will be:
- an officer of a body corporate- each member of the management committee of an association- each partner of a partnership- a person in a management position of the business, with the authority or responsibility for, or significant influence over, decisions affecting the delivery of children’s education and care (such as a state/territory or area manager).
For some approved providers, there will be no change in the individuals who meet the PMC definition when the expanded definition comes into effect.
However, some approved providers may find that the expanded definition will include persons within or associated with the approved provider entity who meet the PMC definition for the first time from 1 July 2023. This may include larger providers that have persons occupying roles within the approved provider entity such as a state/territory or area manager.
How should approved providers prepare for this change?
All approved providers should:
- assess whether the information about the approved provider (including PMCs) notified to the regulatory authority is current
- assess whether any additional persons will meet the expanded definition of PMC when it comes into effect on 1 July 2023
- notify the regulatory authority that those persons are PMCs for the provider as soon as possible after 1 July 2023.
If they are satisfied that the regulatory authority has been notified of all persons who meet the expanded definition, they will not need to take any further action.
The approved provider must notify the regulatory authority of any appointment or removal of a PMC within 14 days of the event (or within 14 days of becoming aware of it) under section 173 of the National Law and section 174 of the National Regulations.
If a person becomes a PMC under the expanded definition when it comes into effect, under a transitional provision, the person is taken to be appointed as a PMC on 1 July 2023. The approved provider must notify the regulatory authority of the appointment of that PMC by 15 July 2023.
For further information on the change in PMC rules an information sheet has been provided by ACECQA.
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