Childcare Centre Purchase Guide
Business Acquisition Guide - Australia
This guide outlines the key considerations, due diligence requirements, and regulatory approvals needed when purchasing a childcare centre in Australia.
Purchasing a childcare centre is a significant investment that requires thorough due diligence across operational, regulatory, and financial aspects. The childcare sector in Australia is heavily regulated to ensure the safety and wellbeing of children.
Key regulatory frameworks include the National Quality Framework (NQF), the National Quality Standard (NQS), and oversight by the Australian Children's Education and Care Quality Authority (ACECQA).
Key Points
- • Service approval must be transferred or a new approval obtained
- • Provider approval is required for the new operator
- • NQS rating can significantly impact business value
- • Child Care Subsidy eligibility must be maintained
Provider Approval
Before operating a childcare service, the new owner must obtain Provider Approval from the relevant state regulatory authority. This involves:
- Application for provider approval (individual or company)
- Fit and proper person assessment for persons with management or control
- National Police Check for all relevant persons
- Evidence of financial viability
- Governance and management structure documentation
Service Approval Transfer
The existing service approval must be transferred to the new provider:
- Application for transfer of service approval
- Confirmation of new provider approval
- Nominated Supervisor consent and appointment
- Educational Leader appointment
- Updated service information (contact details, etc.)
Timeline: Provider and service approval applications should be lodged 6-8 weeks before settlement to ensure continuity of operations.
Child Care Subsidy (CCS)
To receive CCS payments from the government:
- Provider eligibility for Child Care Subsidy
- Complying Written Arrangement with each family
- Software system for session reporting
- Enrolment notice submission within 7 days
Pre-Settlement Checklist
- Provider approval granted or pending confirmation
- Service approval transfer application lodged
- Lease assignment/new lease executed
- Staff employment arrangements confirmed
- Parent notification letters prepared
- CCS system access arranged
- Insurance policies in place
Settlement Day
- Final walkthrough inspection
- Handover of keys, codes, and access cards
- Staff introductions and handover meetings
- Collection of business records and documentation
- Utility account transfers
- Supplier account notifications
Post-Settlement
- Notify regulatory authority of ownership change
- Update service information on National Register
- Complete CWA updates with families
- Submit enrolment notices to Centrelink
- Review and update Quality Improvement Plan
- Introduce new management to families and staff