Members of the Australian Childcare Alliance (ACA) NSW would be aware that since the introduction of the NSW Department of Education's (enhanced) Approvals Process that began on 1 July 2016, there has been much confusion and concerns that all directors were required to sit "the test" ultimately.

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Unlike prior to 1 July 2016, co-owner directors have since been obliged to sit "the test" even though they have no effective role or influence over their early childhood education and care services. This has resulted in significant changes in business structures for virtually every Approved Provider.

ACA NSW is pleased to share the following information just received from the NSW Department of Education that clarifies their current requirements of who are persons with management or control versus other persons who do not have management or control influences or roles.

Persons of Management or Control (PMCs), as advised in Section 12(2)(b) of the National Law, are defined as each person who will be a person with management or control of an education and care service. All notifications that are received for PMCs undergo a comprehensive assessment using a risk-based approach. As part of this process, every person is assessed and if, through that assessment, an individual is unable to demonstrate a background or an understanding of their responsibilities, they will be interviewed and undergo a knowledge-based assessment centred around scenarios and/or interview questions based on the information that they have supplied to support the notification.

A contact is a person who can respond on behalf of the provider, however does not have management or control of an education and care service. Contacts do not have defined responsibilities under the legislation. The Department’s policy is to undertake a separate assessment of contacts, to understand the impact they have on the fitness and propriety of the approved provider.

All providers must have a PMC and notify the Regulatory Authority of any changes. It is an offence to fail to notify the Regulatory Authority of any changes, under Section 173(1)(b) of the National Law. The Department can take action against a provider for not notifying the Department.

Should members require any further clarification, please contact the ACA NSW office on 1300 556 330 or