Cancellation of Childcare Benefit Approval: Sweet Melon Family Day Care Pty Ltd and Secretary, Commonwealth Department of Education and Training

This was a case heard by the Australian Administrative Appeals Tribunal in which Sweet Melon Family Day Care Pty Ltd (a Victorian based provider) sought a review of the decision of the Department to cancel its child care benefit approval issued under A New Tax System (Family Allowance) (Administration) Act 1999 (Cwlth) for failing to meet the conditions of the approval. The Tribunal comprehensively reviewed the non-compliances by the provider under the Administration Act affirmed the decision of the Department, stating:

It is clear from the evidence that SMFDC has not complied with all applicable statutory requirements imposed on it as an approved child care service. The scale, repetitive nature and seriousness of non-compliances can only be described as reckless breaches of SMFDC’s approval under section 196 of the Administration Act. Recklessness is evident from the fact that sessions of care were claimed by SMFDC even when its educators cleary reported children were absent, or when the information available to SMFDC showed that the number of children in care exceeded the permissible limit in the National Regulations. In these circumstances, cancellation of SMFDC’s approval is the preferable sanction. (para.36)