Changes to persons with management or control definition: FAQs
Find out:
- Why the PMC definition is changing
- Identifying PMCs under the new definition
- What this means for approved providers who are registered schools
- Child Care Subsidy and the new PMC definition
- How and when to change a PMC on the provider approval
- What happens after a PMC form is lodged
Why is the definition of a person with management or control (PMC) under National Law SA changing?
Early childhood services are regulated under the National Law and under the commonwealth Family Assistance Law (FAL). To reduce regulatory burden on approved providers of early childhood services, the definition of a PMC is being updated from 1 July to align with the FAL.
This aims to meet the expectations of the broader community that regulatory authorities (the Education Standards Board for South Australia) can assess the suitability of all persons who have significant influence, responsibility or authority over the delivery of the provider's service.
How does an approved provider identify who to nominate as a PMC under the new definition?
The new definition of a person with management or control is found in National Law, section 5A.
It is the responsibility of approved providers to read and understand the definition and apply it to their context.
The specific criteria for identifying if an individual is a PMC depends on the provider governance model but the updated definitions have common themes that define individuals as a PMC:
- have authority or responsibility for, or significant influence over the planning, direction or control of the activities or the delivery of the education and care service
- are a member of the group of persons responsible for the executive decisions made in relation to the education and care service.
The expanded definition will mean that, at a minimum, members of the governing body (such as a Board of Directors, school governing council or management committee) and individuals within the approved provider who are in roles listed below will meet the definition of a PMC:
- chair
- secretary
- treasurer
- chief financial officer or equivalent
- chief operating officer or equivalent
- state or territory managers within larger approved providers
For some approved providers there will be no change in the individuals who meet the PMC definition on 1 July 2023.
What does the change mean for registered schools who provide early childhood services?
Some approved providers of early childhood services are also regulated as registered schools under the Education and Early Childhood Services (Registration and Standards) Act 2011 (SA) (State Act). These may include:
- State government school providers
- State and local government managed providers
- Independent school providers
- Catholic school providers
Registered schools must ensure that the school is established by fit and proper persons (Standard 1.2). This means that all members of the school’s governing body must have a current Working With Children Check and current National Criminal History Check.
Registered schools who provide early childhood services must complete the PA02 Declaration of fitness and proprietary form for each individual identified as a PMC.
The Board will consider opportunities to align and streamline fitness and propriety tests for registered schools regulated under both the State Act and the National Law in the future.
Will the PMCs who meet the definition for Child Care Subsidy purposes automatically meet the updated definition under the National Law?
In some circumstances, a person will meet the definition for a Child Care Subsidy (CCS) provider approval but will not meet the updated definition for PMC under National Law.
Operational management roles, such as nominated supervisor, centre manager or person in day-to-day charge will only meet the updated definition of PMC under the National Law where they have a role in executive decision-making related to the delivery of a service.
Visit the Australian Government website for more information about PMCs under the CCS and Family Assistance Law.
How and when does an approved provider change or add PMCs on the provider approval?
The forms to update a Person with Management or Control (PMC), including appointment, removal or changes to fitness and propriety are the PA02 and PA08, found in the NQAITS portal.
A PA02 Declaration of fitness and proprietary form is used to provide information that the Board uses to assess the fitness and proprietary of a person to be involved in provision of education and care services to children (s12 National Law).
The PA08 Notification of change of information about an approved provider is used to notify the Board about the appointment or removal of a person with management or control of an approved provider. To complete the notification you will need the person’s name, contact details and the date the person was added or removed as a PMC.
The PA08 form must be lodged within 14 days of the change (s 173(1)(b) National Law SA).
For further assistance and information on lodging the PA08 form, see the User Guide provided by ACECQA from page 192-200 which details the steps to use the PA08 notification form to update a PMC.
What happens once the PMC notification forms have been lodged?
Once the notification is lodged, an applications officer at the Board will check that all the required information is attached. This includes photo ID, a Working With Children Check (WWCC) or Screening Reference Number (SRN) from the Department of Human Services and National Criminal History Check. If the person is a school principal this will include teacher registration. If a person is not a school principal, a resume is required to provide evidence of management capabilities.
If the notification is incomplete the applicant will receive an email requesting the missing information.
The regulatory authority will assess a PMC’s fitness and propriety, including their knowledge of the NQF, using a risk-based approach. In addition to the documentation submitted with the notification, the regulatory authority may also gather further information by interview, written assessment, or both.
When the application is validated as complete, the identity of the applicant is verified and the person is formally added as a PMC for the approved provider.
The regulatory authority can reassess a person’s fitness and propriety at any time.
Resources
ACECQA: Spotlight on PMC notifications