The Education and Training Reform Regulations 2017 have now passed as amended with effect from 20 January 2020.
Schools which operate an early learning centre now have capacity to operate their ELCs without automatically breaching the not-for-profit regulations.
However, there are conditions.
Firstly, the operation of an ELC is not automatically compliant, irrespective of its structure and operations.
ELCs must still, under the regs:
- Be operated not using government funding;
- Be operated as a “feeder for enrolments to the school”; and
- Be operated commercially, meaning that all fees and charges, including any paid to outside operators, must still meet the other “not for profit” requirements of the Act and regs.
Further restrictions apply.
Only services in the (now) three years before prep (draft regs said two) will meet the exemption in the regs (ie, 3 and 4 year old kinder years, and the year before). Services akin to daycare which accept babies up to the year before 3 year old kinder are not recognised as exempt. This has important implications for their structure (whether it needs to be separate from school and other “kinder” ELC for example) and registration for funding and registration as a charity -we can advise.
The issue of “feeder” also remains. This is restrictive and may pose challenges for schools where many ELC students do not go onto prep, or where they go on to attend another school in the school system, but not the school which operates the ELC. Legal and policy documentation, including within school systems, becomes important here. We can assist.
Broadly, our advice remains consistent and is now further confirmed that independent and Catholic schools still:
- should operate separate accounts for school and ELC;
- should have a MOU for the ELC;
- in some cases, establish a separate legal entity for the ELC (and possibly more than one);
- should seek advice if they are concerned about their baby and toddler service;
- should seek advice if concerned about whether they qualify as a “feeder”; and
- if in a system, should note that School systems will require advice and internal documentation if they recognise that their ELCs may act as feeders to different schools in the same school system.
How we can help
For further guidance or if you have any queries about this new regulation, please do not hesitate to contact us.