When you buy a childcare centre you buy its compliance position. Before you sign, check four things. The approvals: the service approval transfers only with the regulator’s consent, on joint notice at least 60 days ahead (National Law s 59 and 60), and you must already hold provider approval; Child Care Subsidy approval does not transfer. The record: the rating and when it was given, conditions and waivers, published enforcement action, and the service’s own compliance record under regulation 167. The paperwork: QIP, policies, staff, enrolment and incident records. The people: whether the roster, qualifications and early childhood teacher coverage work without the seller. This checklist covers what to ask for and where to look.
A compliance due diligence checklist for buyers of an Australian childcare centre: approvals, ratings and enforcement history, the records to inspect, and staffing.
| Check | Why | Rule |
|---|---|---|
| You (or your entity) hold provider approval, or have applied | Only an approved provider can receive a service approval. Each person with management or control must be fit and proper. | National Law s 58; see provider approval |
| Timetable allows joint notice 60 days before the transfer date | The regulator can intervene over the buyer’s capability or compliance history; a transfer without consent is void | s 59 to s 67 |
| Both parties will confirm the transfer within 2 days after it takes effect | A penalty applies for failing to notify | s 68 |
| Your own Child Care Subsidy provider and service approval | CCS approval belongs to the provider and does not transfer. The seller must notify the Department of Education at least 42 days before it stops operating | Child Care Provider Handbook |
| Conditions on the service approval, and any waivers | Conditions bind you after the transfer; a temporary waiver may be about to expire | r 173; see waivers |
The full process is in transferring a service approval.
Where to look is set out in how to check a rating and compliance history.
| Record | What to look for | Rule |
|---|---|---|
| Quality Improvement Plan | Current, reviewed in the last 12 months, self-assessment against the NQS and the Regulations, philosophy | r 55, r 56 |
| Policies and procedures | A complete regulation 168 set, current, reviewed, and matching practice | r 168 to r 172 |
| Staff records | Qualifications, working with children checks, first aid, the educational leader and responsible person records | r 145 to r 152 |
| Incident, injury, trauma and illness records | Complete entries within 24 hours, and a pattern you can live with | r 87 |
| Enrolment records | Authorisations and health information complete for every child | r 160 to r 162 |
| Emergency rehearsals | Every 3 months, documented | r 97 |
Use the free checklists to test samples: incident records, enrolment records, emergency and evacuation and the policy review tracker.
Plan your first 90 days as the new approved provider: review the policies, update the QIP, set the compliance calendar, and check every expiry date. The first 90 days guide sets out a sequence.
It can, but only to another approved provider and with the regulatory authority's consent. Both providers must jointly notify the regulator at least 60 days before the transfer date (National Law s 58 to 60). Child Care Subsidy approval does not transfer.
Check the rating and assessment date on ACECQA's national registers, enforcement action on StartingBlocks.gov.au and the state regulator's register, and the Child Care Subsidy enforcement register. Ask the seller for the compliance record kept under regulation 167 and to disclose any open matters.
The QIP, the regulation 168 policies, staff records, incident records, enrolment records and emergency rehearsal records, plus the current roster against ratio and qualification rules.
WIDEN Law answers National Quality Framework questions with inline citations to the National Law, the Regulations and the NQS, so you can check the source provision yourself.
14-day free trial, no card →This page is a research summary, not legal or compliance advice. It is written in our own words from the sources linked on the page; confirm the position with your regulatory authority before relying on it for a compliance decision.