Regulators intend to expand definition of Persons with Management and Control

June 26th, 2023 Latest News

During the NSW Department of Education's new ECE Connect series, their presentation on 19 June 2023 outlined their planned implementation of the National Quality Framework Review, what to expect and why.


In particular, they intend to expand the definitions of persons identified as Persons of Management or Control. (ACA NSW members will recall that in September 2020, the NSW Department of Education arrived at a more common sense approach to the above.)


Given the potential scale of such a change, ACA NSW has raised the following immediate (and initial) concerns with the NSW Department of Education:


  1. Based on this change, will all the new persons identified as Persons of Management or Control (PMC) be required progressively as well as retrospectively to sit and pass the National Law online knowledge assessment?
  2. If yes to #1, and assuming there will be a significant backlog of applicants to “sit the test”, does NSW ECECD have plans in place to distribute the demand for the knowledge assessment across a certain period of time?
  3. Based on #2, if there are delays in “sitting the test”, what will there be a Regulatory Authority deferral/waiver to such non-compliance to the National Law/Regulations?
  4. Does the NSW Department of Education have a list of roles for services to use as a checklist of whom they should consider to register as PMCs? Similarly, does the NSW ECECD have a list of other roles for services to know that individuals in such roles DO NOT need to be registered as PMCs?
  5. For Approved Providers who operate services in other states (and hence such services’ PMCs are not obliged to pass the National Law online knowledge assessment) as well as in NSW, will the NSW Regulatory Authority require those NSW-based services’ PMCs to still sit and pass the National Law online knowledge assessment even though such individuals may or may not be in NSW?

As ACA NSW understands, the sector is anticipating the public release for the text of the actual changes to occur in the National Law and the National Regulations. The current definition of persons with management or control is as follows:


person with management or control, in relation to an education and care service, means—

(a)  if the provider or intended provider of the service is a body corporate, an officer of the body corporate within the meaning of the Corporations Act 2001 of the Commonwealth who is responsible for managing the delivery of the education and care service; or

(b)  if the provider of the service is an eligible association, each member of the executive committee of the association who has the responsibility, alone or with others, for managing the delivery of the education and care service; or

(c)  if the provider of the service is a partnership, each partner who has the responsibility, alone or with others, for managing the delivery of the education and care service; or

(d)  in any other case, a person who has the responsibility, alone or with others, for managing the delivery of the education and care service;


These new changes are apparently based on ACECQA's Decision Regulation Impact Statement following the NQF Review 2019.


Given the potential significance of the subsequent consequences of the purported change(s), ACA NSW will continue to seek again a more common sense approach, especially given the severe labour shortages and post-COVID fatigue being universally experienced. ACA NSW will also provide ACA NSW members with a more fulsome discussion no later than at its next ACA NSW What's The Buzz Meeting on 24 July 2023.


In the meantime, ACA NSW members can contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au to seek any further information/clarification.


PUBISHED: 26 JUNE 2023

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