The Fit and Proper Person Assessment for Provider Approval

When you apply for Provider Approval, your regulatory authority does more than check that your paperwork is complete. It also forms a view about whether you, and the people who will manage or control your service, are suitable to be entrusted with the education and care of children. This is commonly described as the fit and proper person assessment.

For many applicants this is the part of the process that feels most uncertain, because it is a judgement rather than a tick-box. Understanding what is generally considered, and who it applies to, helps you prepare with confidence rather than anxiety.

What “fit and proper” means

Under the National Law, a regulatory authority must be satisfied that an applicant is a fit and proper person to be involved in the provision of an education and care service before granting Provider Approval. The specific criteria are set under the National Law and are assessed by your state or territory regulatory authority.

In practice, the assessment is about suitability and trustworthiness. The authority is looking for evidence that the people behind the service can run it lawfully, responsibly and in the interests of children and families. It is not designed to catch applicants out; it is designed to protect children by ensuring that approved providers are capable and accountable.

The kinds of matters considered

Rather than a single test, the assessment weighs a range of matters together. While the exact considerations are set out in the National Law and applied by your regulatory authority, the kinds of matters generally taken into account include the following.

History of compliance

The authority may consider your history of complying with relevant laws, including the National Law itself and other obligations connected to running a service or business. A record of meeting your obligations supports your application. If there have been past issues, how you responded and what you have put in place since can matter as much as the issue itself.

Management capability

Running an education and care service requires sound governance. The authority may consider whether the people involved have the capability to manage a service in a way that meets quality and safety expectations. This includes having appropriate systems, oversight and decision-making in place.

Financial management capability

A service needs to be financially viable to operate safely and continuously. The authority may consider whether the applicant has the capability to manage the financial aspects of the service responsibly, so that children’s care is not disrupted by avoidable financial difficulty.

Any relevant history

The assessment may take into account relevant history, which can include matters such as previous decisions about approvals, certain legal or regulatory history, or other information that bears on suitability. Honesty and full disclosure here are important. Attempting to omit relevant information is far more damaging than disclosing something and explaining the context.

These are examples of the kinds of matters considered, not an exhaustive legal list. Your regulatory authority applies the criteria set under the National Law to your particular circumstances.

Who the assessment applies to

The fit and proper consideration is not limited to a single person. It generally applies to the applicant entity and to the persons with management or control of the proposed service.

Who falls into that category depends on how your organisation is structured. For a company it may include directors and others who exercise control; for a partnership it may include the partners; for other structures it may include those who hold decision-making authority. Nominated responsible persons connected to the service may also be relevant. If you are unsure how the terms apply to your situation, the glossary is a helpful starting point, and your regulatory authority can confirm exactly who must be assessed.

The practical point is to identify these people early. Each may need to provide information or consent to checks as part of the application.

How to prepare

You cannot rewrite your history, but you can present it clearly and demonstrate that your service will be in capable hands. A few practical steps make a real difference.

• Identify your people early. Work out who counts as a person with management or control, and brief them on what may be required of them.
• Get your records in order. Gather documents that evidence sound governance, financial management and any compliance history. Organised records signal an organised provider.
• Disclose honestly and fully. If anything in your history could raise a question, address it openly rather than hoping it is overlooked. Context and evidence of how you have moved forward carry weight.
• Show your systems. Be ready to describe how the service will be governed and managed day to day, not just on paper.
• Seek advice if anything is sensitive. If you are uncertain how a past matter might be viewed, get advice before you submit.

It also helps to see the fit and proper assessment in the context of the wider process. Our guide on how to get Provider Approval sets out the full pathway so you can prepare for each stage in order.

This guide is general information, not legal advice. Fit and proper assessments are made under the National Law by your state or territory regulatory authority.

Getting it right the first time

A well-prepared application that addresses suitability head-on is far less likely to be delayed by requests for further information. If you would like a second set of eyes on your application, or help thinking through how your structure and history will be assessed, get in touch with our team of Provider Approval specialists. We help applicants present a clear, honest and well-evidenced case so the process moves smoothly.