In Short
- Childcare businesses must comply with the National Quality Framework and obtain provider and service approvals before operating.
- Staff must meet childcare qualification and child protection requirements, including Working With Children Checks and first aid training.
- You must also secure council approvals, comply with food safety rules, manage health concerns, and have proper legal documents in place.
Tips for Businesses
Before starting a childcare business, carefully research your licensing and legal obligations. Apply for the necessary approvals in a timely manner, hire qualified staff, and prepare clear policies and documents. Maintain regular contact with your local council and ensure your service complies with relevant food safety, health, and child protection laws.
Running a childcare business is equal parts exciting and daunting. You need to consider how you will market your business, find qualified and motivated staff, set up a valuable learning environment and meet parental expectations. You should also be aware of your legal obligations. Specifically, you may need a licence or approval to operate your childcare business. This article explores how you can fulfil your obligations and licensing requirements when running a childcare business.
Applicable Laws and Regulations
The National Quality Framework (NQF) provides a national approach to regulation, assessment and quality improvement for early childhood education and care services across Australia. It applies to childcare services that are predominantly offered outside the child’s home. The NQF includes:
- the establishment of a national body to regulate, guide and implement the reforms, called the Australian Children’s Education and Care Quality Authority (ACECQA);
- a set of standards for each service in Australia known as the National Quality Standard (NQS); and
- the enforcement of the NQS through the overarching national framework governing each state and territory. An exception is Western Australia, which consists of the Education and Care Services National Law Act 2010 (National Law) and the Education and Care Services National Regulations.
Victoria has adopted the National Law without further legislation.
Type of Service
As a childcare business owner, the laws and regulations applying to you will depend on the type of service you are providing. There are a number of services classified as early childhood education and care options, including:
- centre-based childcare or long daycare – provided in a more formal centre setting;
- private home or family day care – a more flexible type of care provided in a carer’s home;
- after school care or outside school hours care – provided in a more formal centre setting before and after school hours; and
- in-home care – provided by educators, generally in the child’s own home.
Each type of service has its own specific regulatory requirements and operational considerations. For instance, centre-based care typically requires larger facilities and more staff, while family day care involves stricter home safety assessments. Outside school hours care must align with school schedules and often involves transportation arrangements. In-home care, while less common, caters to families with unique circumstances and may have different staffing qualifications. It is crucial to thoroughly research and understand the specific regulations and best practices for your chosen service type before proceeding.
Continue reading this article below the formLicences and Approvals
To operate a childcare business in Australia, you need:
- provider approval;
- service approval; and
- supervisor certificates.
Each state and territory has its own regulatory authority which will assess you against a set of standards. Generally, you will be evaluated based on the following:
- your compliance history before your current application, if you are an existing or previous approval holder;
- relevant results from Working With Children Checks and national criminal history checks; and
- the documentation you have provided to support your application.
Following the assessment, you may be required to:
- attend information and training sessions;
- perform knowledge assessments; and
- attend department interviews.
You will then need to prove to the relevant regulatory authority that you are a fit and proper person. Additionally, you must satisfy that you understand your obligation to ensure the health, safety and well-being of the children in your care.
Find Qualified Staff
Once you have the appropriate licences, the next step is finding qualified childcare workers. They need to have completed their Working With Children Check and mandatory notification training.
You and your staff need to be vigilant and aware of your obligations under child protection laws, especially in the states and territories. For example, the Children and Young Persons (Care and Protection) Act 1998 in NSW, Children, Youth and Families Act 2005 in Victoria and Child Protection Act 1999 in Queensland.
It is not necessary for all of your staff to have childcare qualifications, although it is best practice to employ people who are suitably qualified in all aspects of childcare. The NQF states that 50% of the educators in a childcare business must have an approved diploma-level qualification. The minimum qualification to run a childcare business is a Certificate III in Early Childhood Education and Care. You should also be equipped to administer CPR and first aid.
Local Government and Council Approvals
Operating a childcare business requires approvals from local governments and councils, which play a crucial role in regulating childcare services at the community level. Depending on the service you provide, you may need to obtain planning permits from the council before you can commence operations. These permits ensure that your childcare facility complies with local zoning laws and building codes.
Furthermore, areas within your council are ‘zoned’ to allow for certain types of infrastructure, so you may need to seek approval to run a childcare business in your proposed site. This could involve applying for a change of use permit if the property was not previously used for childcare purposes. Councils may also have specific requirements regarding parking facilities, outdoor play areas, noise levels, and operating hours.
Additionally, local councils often conduct regular inspections to ensure ongoing compliance with health and safety standards. They may also require you to submit periodic reports or renew your permits on a regular basis. It is advisable to maintain a good relationship with your local council and stay informed about any changes in local regulations that might affect your childcare business.
Food Hygiene and Preparation
When developing a menu for your childcare business, you must meet food hygiene and preparation standards. Food Standards Australia and New Zealand (FSANZ) is a government body that develops food standards across both countries.
FSANZ issues the Food Standards Code and provides extensive resources to childcare businesses about:
- risk management;
- allergy advice; and
- food recalls.
Additionally, local governments and councils may inspect the premises of the childcare business. This is to ensure the food storage, preparation and service processes meet hygiene standards and food safety guidelines.
Illnesses and Health Concerns
In addition, you should be aware of federal and state-based health department rules regulating what childcare businesses should do in the event of illnesses or health concerns. The Australian Department of Health (ADH) provides statements regarding health advice for childcare businesses. For example:
- strategies your childcare business should implement; and
- reporting requirements you should comply with if a child becomes ill in your care.
Necessary Legal Documents
Before starting any business, it is essential that you have the required legal documents in place. Depending on the type of childcare service you provide, you may have different legal requirements. However, the following documents are a good place to start:
- employment contracts/independent contractor agreements;
- code of conduct and team handbook;
- service terms and conditions;
- non-disclosure/confidentiality agreements;
- privacy policy;
- vendor agreements; and
- intellectual property protection.
Additional important documents include child enrolment forms, medical authorisations, incident report templates, and risk assessment forms. You should also have clearly defined policies covering areas such as child protection, behaviour management, and emergency procedures. It is advisable to have these documents reviewed by a legal professional to ensure they comply with all relevant regulations and provide adequate protection for your business, staff, and the children in your care.
Know which key terms to negotiate when buying a business to protect your interests and gain a favourable outcome.
Key Takeaways
When running a childcare business, your primary responsibility is to the children in your care. You must ensure that you:
- hold the appropriate approvals;
- hire qualified staff; and
- keep updated with government health advice and standards.
You should also abide by your obligations under the legislative regimes governing the operation of childcare businesses. If you need help getting your approvals or setting up your service, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A Working with Children Check (WWCC) is a requirement for anyone who works or volunteers in child-related work in NSW. It involves a National Police Check (criminal history record check) and a review of reportable workplace misconduct. The check remains in effect for five years and undergoes continuous monitoring, even if the check holder changes jobs.
While you do not necessarily need qualifications to own a childcare centre, you must employ staff with appropriate qualifications.
Yes, you can operate a family day care service from your home. However, you will need to meet specific requirements set by your state or territory regulatory authority and comply with the National Quality Framework.
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