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NQF Review proposes to cancel provider approval of sole traders and partnerships upon notification of death

On page 140 of the Consultation Regulatory Impact Statement (CRIS), the Review of the NQF is proposing to cancel “provider approval upon notification of a death of the approved provider if they were a sole trader (or partnership of two persons where one is deceased”.


Technically, if an Approved Provider is a sole trader, the Federal Government would immediately suspend the flow of childcare subsidies upon notification of that person's death. Hence, the Australian Childcare Allliance NSW has repeatedly encouraged such operators to take appropriate steps to mitigate such a risk, regardless of how unlikely it might currently be.  


And while we understand the governments' underlying concerns, further alternate options must be canvassed for the 202 (as of April 2021) NSW-based services that could be negatively affected by this proposal.


One possible alternative solution could be that sole traders be given a 12-month period in the near future where they can nominate another person to be the Approved Provider in the event of their death. Such a person would of course need to be pre-approved by the relevant Regulatory Authorities. And upon death, that the transition to the alternate person be facilitated within 30-60 days upon death of the sole trader. As for in situations of partnerships, one possible alternative solution could be that the surviving partner be allowed to continue as the Approved Provider but be given up to 90 days to nominate another partner or have the legal structure changed.


The Australian Childcare Alliance (ACA) NSW has published the following documents that will help Approved Providers and services understand all the issues and assist them with their responses via the NQF Review’s via survey and written submission:



By copying-and-pasting some or all of the Template Response’s content, or developing your own responses, it is nonetheless ACA NSW’s most fervent recommendation that Approved Providers and services submit responses to BOTH channels (ie via the survey as well as the written submission).


Please note that all responses are due by 30 April 2021.


The last two live and interactive sessions where the Review of the NQF can still be discussed are:



And if you require any further information/clarification, please contact ACA NSW via 1300 556 330 or nsw@childcarealliance.org.au.


Related Articles (links available upon release):



PUBLISHED: 26 APRIL 2021