1 July 2023 marked the commencement of the second round of approved regulatory changes throughout the majority of jurisdictions within the sector. The Guide to the National Quality Framework (NQF) has been updated to include these changes, and a copy can be viewed here, or via the ACECQA website.
A summarised version of some of the changes is highlighted below, and a list of information sheets can be found at the bottom of the article.
1. Changes to some NQF rules: impacting all services;
Fee changes are being phased in to reduce the impact on providers and their services as well as introduce a new category to differentiate fees applied to ‘large’ and ‘very large’ services. In addition to this change, to increase incentive and reduce administrative burden for services applying for the Excellent Rating, they are extending the period of approval from three to five years.
2. Changes to some NQF rules: impacting family day care (FDC) services;
Some adjustment will be allowed when calculating family day care coordinator to educator ratios for FDC services that have been open for at least 12 months to assist in addressing the workforce challenges with in the sector. New rules are also in place to ensure all FDC educators hold at least an approved certificate III level qualification prior to commencing their role, including giving existing educators a period of 12 months to complete their qualifications.
3. Changes to some NQF rules: impacting centre based services;
Updates to rules impacting restrictions on short-term relief when replacing educators during short term absences and resignations. The definition of 'person with management or control' of the service has also been broadened to better capture persons exercising significant influence over the operation of services, and closer alignment between the Education and Care Services National Law and the Family Assistance Law on matters relating to the ‘fitness and propriety’ of service providers.
The provider approval process has changed for new and existing providers
Prospective and existing providers can apply for approval from the Australian Government and state and territory governments in one place – the National Quality Agenda IT System (NQA ITS). This change will reduce the administrative burden on applicants and streamline assessment. Providers will need two approvals to operate an early childhood education and care service that offers CCS. Until now, prospective providers had to prepare and submit each application via separate platforms.
New financial reporting obligations have started for large providers
Large providers, a provider that operates, shares the operation of or plans to operate or share in the operation of 25 or more services, must now report financial information to the department, including information about revenue, profits, and leasing arrangements. The information a large provider must report depends on their circumstances. Large providers must report within 3 months of the end of the financial reporting period.
If you’re a large provider and you do financial reporting on a financial year, you must report within 3 months of 30 June. If you do your financial reporting on a calendar year, you must report within 3 months of 31 December.
How families pay the gap fee has changed
As of 1 July, families using early childhood education and care must now pay the gap fee electronically. Families that need help using EFT to pay the gap fee are advised to speak to their service provider. Approved providers are responsible for ensuring their services and educators comply with this new obligation. The Department will conduct regular audits to ensure providers are collecting gap fees electronically and may take compliance action if a provider fails to comply.
Key changes for centre-based services from 2023
Short term relief of educators at centre-based services from 2023
Educators who are ‘actively working towards’ a qualification from 2023
Legislative Requirements for family day care providers from 2023
Legislative Requirements for family day care educators from 2023
Documenting programs for school age services
Identifying persons with management or control of a service from 1 July 2023 – Existing Providers
Identifying persons with management or control of a service from 1 July 2023 – Prospective Providers
Suspending or cancelling a provider approval under National Law from 1 July 2023
Increases to fees and offence penalties as of July 2023
Excellent Rating Application Form
Excellent Rating Application Guidelines
Excellent Rating Re-application Guidelines
Applying for the Excellent Rating - Participants Handbook
ACA Qld Team