Koala Family Day Care Pty Ltd and Secretary, Department of Education

Koala Family Day Care Pty Ltd (the Applicant) sought review of a decision by an Authorised Review Officer of the Secretary, Department of Education (the Respondent) that confirmed the cancellation of the Applicant's approval as a childcare service under the *A New Tax System (Family Assistance) (Administration) Act 1999* (the Administration Act). The cancellation meant that parents and guardians were no longer eligible for the Child Care Benefit and Child Care Rebate for childcare provided by the Applicant. The Applicant had been approved as a childcare service on 20 February 2012, and subsequent compliance reviews for the periods 1 July 2013 to 24 May 2014 and 1 July 2014 to 7 December 2014 identified numerous breaches of the family assistance law.

The Tribunal was required to determine whether the cancellation of the Applicant's approval as a childcare service was an appropriate sanction under the Administration Act, given the Applicant's substantial non-compliance with the regulatory framework over a prolonged period. The legal framework established by the family assistance law, comprising the *A New Tax System (Family Assistance) Act 1999* and the Administration Act, provides for childcare benefits and rebates subject to certain conditions. Approved childcare services must comply with these conditions at all times, and the Secretary has the power under section 200 of the Administration Act to impose sanctions, including cancellation of approval, if these conditions are not met.

The Tribunal found that the Applicant had committed serious infractions of the conditions for approval. Specifically, 2420 sessions of care were identified as incorrect, resulting in an overpayment of $88,777.61. Furthermore, in over 1,608 sessions of care, either the educator or the child was overseas, leading to contraventions involving the provision of false, misleading, or inaccurate information, and resulting in Child Care Benefit and Child Care Rebate payments totalling $40,987.94. The Tribunal concluded that these breaches constituted substantial non-compliance and that the sanction of cancellation was fully justified.

Consequently, the Tribunal confirmed the sanction of cancellation of the Applicant's approval as a childcare provider under the family assistance law and affirmed the decision of the Authorised Review Officer made on 16 October 2017.