A service approval can be transferred to another approved provider (s 58), but only with the regulator’s consent (s 60). Both providers must jointly notify the regulator in writing at least 60 days before the transfer date, with the prescribed information and fee (s 59). Consent is taken to be given unless the regulator gives notice that it will intervene at least 28 days before (s 61, 62). A transfer without consent is void (s 67), and both providers must confirm the transfer to the regulator within 2 days after it takes effect (s 68). Child Care Subsidy approval does not transfer: the buyer needs its own CCS provider and service approval.
The National Law steps and deadlines for transferring a service approval when a childcare centre is sold, what the regulator looks at, and the Child Care Subsidy and funding points buyers miss.
| Step | Requirement | National Law |
|---|---|---|
| Who can receive | Only another approved provider; the transfer includes any associated children’s service approval, and is possible even if an approval is suspended | s 58 |
| Joint notice | Both providers notify the regulator in writing at least 60 days before the intended date (or a shorter period the regulator agrees to in exceptional circumstances), stating the date, with the prescribed information and fee | s 59 |
| Delays | If the date moves, jointly notify the new date as soon as practicable | s 59A |
| Consent | Required; taken to be given if the regulator has not said it will intervene 28 days before the transfer date | s 60, s 61 |
| Intervention | The regulator may intervene over the buyer’s capability (including financial capacity and management capability), its compliance history, or any other relevant matter; the transfer cannot proceed until written consent, which may carry conditions | s 62 to s 65 |
| Outcome notice | After intervening, the regulator must notify the outcome at least 10 days before the transfer date (consent, refusal with reasons, suspension pending information, or a decision within 28 days) | s 66 |
| Void transfers | A transfer without consent, against the conditions, or to someone other than the notified receiving provider is void | s 67 |
| Earlier date | Only if the regulator agrees that exceptional circumstances exist | s 67A |
| Confirmation | Both providers give written notice within 2 days after the transfer takes effect; penalty up to $13,500 for an individual or $68,700 otherwise | s 68 |
The buyer must already hold provider approval; see how to open a childcare centre for the provider approval and fit and proper assessment, and persons with management or control.
See Child Care Subsidy provider obligations for enrolment notices and reporting after settlement.
The transferring and receiving approved providers must jointly notify the regulatory authority at least 60 days before the transfer is intended to take effect, unless the authority agrees to a shorter period in exceptional circumstances (National Law section 59).
A service approval cannot be transferred without the regulator's consent. Consent is taken to be given if the regulator has not notified an intention to intervene 28 days before the transfer date (sections 60 to 62).
The transfer is void (section 67).
No. The new provider must be approved under Family Assistance Law as a provider and for that service type, and the seller must tell the Department at least 42 days before it stops operating the service.
Both providers must give written notice to the regulator within 2 days after the transfer takes effect, specifying the date (section 68).
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.
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