This is an unusual case as the Commonwealth Department of Education cancelled the CCS approval of Universal Family Day Care Pty Ltd because they had been deregistered as a company by ASIC. The company had been deregistered due to non-payment of its annual review fee. The Department cancelled the approval on the basis that it was no longer operating - even though the service continued to operate caring for children. The provider sought a review of this decision before the Australian Administrative Appeals Tribunal. The issue for determination by the Tribunal was whether the Department properly cancelled Universal FDC’s provider approval as a result of ASIC’s decision to deregister the company. This required it to consider whether:
- as a result of ASIC’s deregistration of the company on 22 July 2018, Universal FDC ceased to operate for the purposes of section 197H, Administration Act.
- the subsequent re-registration of Universal FDC by ASIC on 14 August 2018 had any effect on the decision to cancel Universal FDC’s provider approval.
...Universal FDC ceased to operate any approved child care service for the period from 22 July 2018 to 14 August 2018 in accordance with section 197H of the Administration Act and therefore was not eligible to receive child care subsidy during this period.
the interesting thing is that deregistration likely has the same effect on provider approvals under the ECS National Law, as provider approvals are not "property". There are probably more than a few corporations who were deregistered then registered who are operating under the same provider approvals they held before deregistration. They may not know that on deregistration their provider approvals were extinguished and they are probably operating in breach of section 103(1) of the ECS National Law.
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