Precious Family Day Care and Secretary, Department of Education

Precious Family Day Care (Precious FDC) sought approval as a provider under the Child Care Subsidy (CCS) scheme, but its application was refused by the Secretary of the Department of Education. The refusal was based on concerns that Precious FDC, and Ms Muna Abdi, a director and person with management and control, were not fit and proper persons to be involved in the administration of CCS and ACCS. Precious FDC sought a review of this decision.

The Administrative Appeals Tribunal was required to determine whether Precious FDC and Ms Abdi met the eligibility requirements for CCS approval, specifically whether they were fit and proper persons to be involved in the administration of CCS and ACCS. This involved assessing the adequacy of Precious FDC's governance documentation and considering Ms Abdi's past conduct, including her compliance with reporting obligations to government authorities.

The Tribunal found that inadequate governance documentation weighed heavily against a finding that Precious FDC and Ms Abdi were fit and proper persons. While acknowledging Ms Abdi's qualifications and experience in the child care sector, and the positive operational history of another service she was involved with, the Tribunal considered her failure to promptly update her residential address with the Australian Securities and Investments Commission (ASIC) to be relevant to her capacity and commitment to complying with government reporting obligations. This failure was seen as impacting the assessment of whether adequate arrangements were in place to ensure compliance with the family assistance law.

Consequently, the Tribunal affirmed the decision to refuse approval for Precious FDC to be a provider for the purposes of CCS and ACCS.