01 MayUpcoming changes to the National Quality Framework (NQF)
From 1 July 2023, the definition of a person with management or control (PMC) of a service will change under the Education and Care Services National Law Act 2010.
WHY IS THE DEFINITION CHANGING?
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 an approved early years’ service. This includes individuals such as company directors, executives, and senior managers who may not be directly involved in service delivery but have the authority to make decisions that impact the service. For some approved providers/Committee of Management (CoM), there will be no change in the individuals who meet the expanded PMC definition.
However, some approved providers may find that the expanded definition will include persons within or associated with the approved early years’ service who meet the PMC definition for the first time from 1 July 2023. This may include larger early years’ providers that have persons occupying roles within the early years’ service such as area manager.
UPDATED DEFINITION
Persons with management or control of a service (PMCs) are the people other than the approved provider who are responsible for managing the delivery of an early years’ service or who have significant influence over the activities or delivery of the service.
Each PMC must be, and remain, a fit and proper person to be involved with children’s education and care. A PMC has the same legal responsibility for the safety, health and wellbeing of children at their service as an approved provider.
A PMC is a person in an executive or management role of an approved provider early years’ service, including:
- an officer of a body corporate (as per the meaning of the Corporations Act 2001 of the Commonwealth)
- each member of the management committee of an association
- each partner of a partnership
- a person in a management position of the service 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).
A nominated supervisor, person in day-to-day charge of a service, or a person who holds other operational management roles in a service (such as a centre manager/director) may not meet the expanded PMC definition unless there has been a delegation of authority. Each member of the management committee of an association would still be required to be a PMC.
HOW SHOULD APPROVED PROVIDERS/CoM PREPARE FOR THIS CHANGE?
All approved providers/CoM should:
- ensure the information to regulatory authority the about the approved provider (including PMCs) 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 satisfied that the regulatory authority has been appropriately informed of all individuals falling under the expanded definition, no additional steps will be necessary.
WHEN TO NOTIFY THE REGULATORY AUTHORITY?
At all times, approved providers/CoM must ensure their PMC information is kept current and accurate. If somebody joins the approved provider/CoM and meets the PMC definitions under National Law and Regulations, they 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.
Notification is not required for PMCs who had already been notified to the regulatory authority as PMCs before the change to the definition on 1 July 2023.
HOW TO NOTIFY THE REGULATORY AUTHORITY?
To notify the regulatory authority of any appointment or removal of a PMC, the approved providers/CoM must submit all relevant forms through the NQA IT System.
WHAT IF AN APPROVED PROVIDER HAS ALREADY NOTIFIED PMCS TO THE AUSTRALIAN GOVERNMENT IN RESPECT OF THE CHILD CARE SUBSIDY (CCS)?
The expanded definition of a PMC under the National Law will be similar to the definition used by the Australian Government for a PMC of a provider entity for administering the CCS under the Commonwealth Family Assistance Law.
Visit the Australian Government website for more information about PMCs in relation to the CCS and the Family Assistance Law.
FURTHER INFORMATION
For further information on the change in PMC rules an information sheet has been provided by ACECQA.
To view the information, Visit: nqfreview.com.au or contact your regulatory authority
