Useful Links

 

CHILDCARE PROCESS FOR BUYING A CHILDCARE CENTRE

Step One – Entity Purchase in

The first step in purchasing a childcare business is deciding on the entity you wish to purchase the business in. That might be a Company,  a Company & Trust or other entity structure.    A company can be organised via ASIC or via your accountant. A company and Trust will require an accountant or a lawyer to establish. What is the best option for you should be discussed with your accountant.

 

If the Company has 3 Directors ECRU will probably insist  all three Directors will be required to go through the exam/interview process. Therefore, if there is a person in the Company who is childcare trained or has Education experience it is best to only have them as sole Director. They will then be the only person required to go through the approval process and will have a better chance of success.  If there are multiple Directors of the Company and e.g. two Directors are required to sit the exam and one of the Directors fails then usually ECRU will fail both Directors.    Shareholders are not required to undertake the approval process, however, they will be vetted.

Step Two – Apply for Provider number

To be able to own and operate a childcare business you must hold a Provider number.

This Provider number is applied for via the Department of Communities – Child Care section in the State you live in or the State you are buying the Childcare business in.

The Provider number is attached to the entity e.g. Company – Company/Trust you have set up that will ultimately own the Childcare business or businesses.

The price is $231 in March 2021.

The Provider number once obtained does not last forever.   If you have not purchased/own  a centre within a period of approximately two years from time of issuance the Department may cancel the number.

The application will require credit checks into the Company history and ALL the Directors of the Company.

Sellers are more willing to accept an offer from a buyer with an existing Child Care Provider number, knowing settlement can occur a lot quicker and the risk of not being approved is not applicable. The time quoted by the Department of Communities for Child Care Provider Number is currently 120 days, however, the Provider approval process at July 2022 is taking 180 days or longer.     Refer section 15 of the Act for more information.

Provider Application Assessment/Examination

Effective 1 May 2022, ECRU ( Education and Care Regulatory Unit)  is now conducting on-line  assessments for Provider Approval suitability in an exam format and possibly subsequent interview.

If you are purchasing a centre and have signed a contract, through Advance Business Brokers, we will assist with this process and provide detailed information on the questions and documents to assist  you.

National assessment comprises a 75 minute online exam with no reading time.    Combination of multiple choice and written answers.  Applicants sit the exam in the  ECRU offices in Perth.  Usually offer only one date per month.  It is very important participants answer the questions as quickly as possible, as several clients have advised they were unable to finish in time.

ECRU  provides some reference materials, a pen and some paper. 

Receipt of Provider Number

Once you have received your Provider number, you can then proceed with your purchase or look for a childcare business and advise the broker/owner you are already in possession of your Provider number which puts you in a stronger position to purchase.

Or, if you have already signed a contract to Purchase a centre and Provider number is a condition of contract you can move onto lodging the other applications.

Child Care Centres – Existing Child Care Providers 

An existing Child Care Provider will already have a Child Care Provider Number.  Therefore only a transfer of the Existing license of the Centre being sold is required.

Finance must also be approved in writing by a finance provider prior to lodgement of license transfer.

The transfer of Service is legislated to be 42 days from receipt of correct application with the  Department of Communities.  

If the buyer is purchasing the Centre in a New company they will need to apply for a NEW provider number for that particular Company and do the full process below.

Step Three –   CCS – Funding for parents with children in Childcare

If the buyer has a contract in place to purchase a business, and has  applied for and received their Provider number, then as soon as their Provider number is issued, they should also lodge their application for CCS funding. This application can also take 42 days or longer.

If you are an existing Child Care operator already holding an approval and operating/receiving CCS funding, then an additional form will need to be completed for the new service and set up  for funding to be received as soon as settlement has occurred.   

For an existing Child Care operator who already is  approved to add their service for CCS funding, please ensure as the Buyer of a Childcare Service you have this completed in advance of settlement so there is no disruption in CCS payments to parents.

Any questions need to be directed to the relevant Government department.

Step Four – Transfer of Service

Transfer of Service can only be lodged with a Provider number. 

The current price is $112 at July 2020

Transfer of Service usually  takes 42 days from the date of lodgment unless intervention has been lodged by ECRU.

Step Five – Settlement

Settlement on a childcare business usually occurs on a Friday (due to Government funding going Monday to Friday) usually one week after Transfer of Service 42 days has expired.

Step Six – Finding a centre

Please note childcare centres are hard to come by. They are in high demand and to enter the industry will require flexibility on the part of the Buyer in regard to location and price.

If the centre has been operational and profitable for over two years a Buyer may be able to secure finance at 50% of the business price or 60% –  70% of the business & property price if purchasing both property and business at the same time.

The price of childcare centres can range from $100,000 to $4,000,000 + for an individual centre (no property)  depending on net profit, location, size and age.

Currently centres are selling in the Perth metro area for a multiple of  3 to 4.5 x net profit including add backs.   Group sales  can achieve 6 to  8  x net profit.  

Regional  locations e.g more than two hours from Perth CBD usually sell for multiples of  2.5  – 3 x net profit.

We hope you have found the above useful.

Click HERE to access the above information as PDF.

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.

The following are contacts and recommended suppliers:

SETTLEMENT AGENTS – PERTH WA

Briar Kirkby
FAST SETTLEMENTS
Work Tel.: 0417988212
E-mail: Briar Kirkby briar@fastsettlements.net

Katie Brennan
WEST END SETTLEMENTS
Shop 6, 7 Scarborough Beach Road
North Perth,  WA 6006
Work Tel.: 08 9443 3044 Fax: 08 9201 1392
E-mail: Katie Brennan katie@westendsettlements.com.au

Stephanie Le Roux
WA Property Lawyers
Personal Assistant to
Brian McCormack, Corinne Adams, Eden Coad and Sarah Wright
Tel: (08) 9380 3600
Address: 96 Outram St, West Perth WA 6005
Email: info@wapropertylawyers.com.au

Saint James Conveyancing
Marisa Durante-Maynard / Jill Nelson-Coulon
Tel.: (08) 9240 7525
E-mail: marisa@conveyancerperth.com.au / Jill@conveyancerperth.com.au

NQF Childcare Australia

https://www.acecqa.gov.au/nqf/national-quality-standard

Childcare Management Companies

Some management companies that may be able to help you and will be able to provide a quote to manage your centre depending on the level of management required.

While we don’t recommend any particular management company, the following links from a Google search may be of assistance:

Elite Childcare Management

www.elitechildcaremanagement.com.au

Early Learning Management: Child Care Management System

www.elm.net.au

Leading Edge: Childcare – Management, Consultant & Training

www.leadingedgechildcare.com.au

Giggletree – Childcare Management, Childcare Consulting, Childcare

www.giggletree.com.au

Advance Childcare Management

www.advancechildcare.com.au

Brisbane Childcare Consultants | Childcare Management Group

www.limelightmanagementgroup.com.au

Our Services – Foundation Early Learning

www.foundationearlylearning.edu.au

Impressions Childcare Management

www.icmanagement.com.au

First Years Consultancy

https://firstyears.com.au/

Roz Brabazon – 0437 894 432

roskva@westnet.com.au

CHILDCARE INFORMATION

Childcare Resources 

https://www.childcarecentredesktop.com.au/

Management Service for Enrollments/CCS for Childcare owners

Management Service for Enrollments-CCS for Childcare owners

Childcare Property’s in hot Demand

https://advancebusinessbrokers.com/listed-articles/investors-swoop-on-childcare-centres/

Australian Children Education & Care Quality Authority (ACECQA) 
http://www.acecqa.gov.au/regulatory-authorities1/contact-your-regulatory-authority

WA Department of Community Services Childcare
https://www.acecqa.gov.au/sites/default/files/2017-12/PA09_TransferofProviderDeclaration.pdf

(PA09 Transferring provider declaration (service approval))

Tel: 62103333

Education and Care Regulatory Unit (ECRU)
https://www.dlgc.wa.gov.au/LegislationCompliance/Pages/Education-and-Care.aspx

Provider Application (PA01) Including Police Clearance Provider
https://www.acecqa.gov.au/sites/default/files/2018-07/PA01_ApplicationForProviderApproval.pdf

Approval Declaration of Fitness and Property (PA02)
https://www.acecqa.gov.au/sites/default/files/2018-09/PA02_DeclarationOfFitnessAndPropriety.pdf

PRODA-Childcare funding application for Children Providers
https://proda.humanservices.gov.au/pia/pages/public/registration/account/createAccount.jsf

PRODA Funding application for Existing Childcare Operators

PRODA Funding application for Existing Childcare Operators

Childcare Subsidies for Childcare Business Owners
https://www.education.gov.au/child-care-subsidy-system

Transfer of Service Application CC
PA09_TransferofProviderDeclaration Feb 20-2

Improvements to Childcare Benefit for Childcare Buyers & Owners

The following videos cover the improvements and changes to the Childcare Benefit system effective 01 July 2018.   

Designer specialising in Childcare property design for new or refurbishment of centres

SPH architecture + interiors

sph.net.au

143 Cambridge St, West Leederville

08 9284 1888

ACCOUNTANT

Marpik Accountants Pty Ltd
Mat Honner
E-mail: mat@marpik.com.au
Tel. (08) 9447 1003

Kim Ovard – Tax Accountants
Tax Agent 25333735
Unit 3A ,23 Edinburgh Avenue, Kinross,6028
E-mail: kim@kimovardtaxreturns.com.au
Tel. (08) 9305 5515

Foreign resident capital gains withholding clearance certificate application form (NAT 74883).

To access the form, visit ato.gov.au/FRCGW.

https://www.ato.gov.au/FRWT_Certificate.aspx

FINANCE BROKERS

ANZ
Brad Hewett
Relationship Manager • Commercial Banking – Health
Email: Bradley.Hewett@anz.com
Phone: 0468 578 241
Address: Level 5, 240 St Georges Terrace, Perth WA 6000

Towner Finance
Michelle Towner | Director
Winthrop & Mandurah
E: michelle@townerfinance.com.au
Ph: 08 9332 2554 | Mob: 0418 99 88 44

Bendigo Bank
Shaun Rigby – Business Banking Manager
Level 3, 225 St Georges Terrace, Perth WA 6000
E: shaun.Rigby@bendigoadelaide.com.au
m: 0427 355 458
Small Business Finance Lender

Liberty
Brett Foster
Tel.: 0438 775 570
E-mail: bfoster@libertynetwork.com.au

Able Finance
Jon Elliott
Tel.: 9328 3600
E-mail: jon@ablefinance.com.au

Southshore Finance
Mr. Steve Greenwood or Michael Coombes
Tel.: (08) 9474 1999
E-mail: steve@southshorefinance.com.au

Crediflex Finance
Adam Barbuzza
Tel.: 0439990946
E-mail: adambarbuzza@crediflex.com

Works with traditional and non-traditional lenders such as Liberty finance. 

Chantal Sforcina – Senior Aussie Broker
Aussie Home Loans
Level 10, 28 Freshwater Place Southbank, VIC 3006
M 0410 074 966
P 03 9679 9333
E-mail: Chantal.Sforcina2@aussie.com.au

MIGRATION SERVICES

Rayford Migration Services:

Contact Pauline Yong – Email: enquiry@rayfordmigration.com

Rayford Migration Services: MALAYSIA OFFICE
Company detail:  About          Service provided:  Australia       188 and 132 information:  Business Visa Australia

Rayford Migration Services: SINGAPORE OFFICE

INSURANCE – BUSINESS

Phil McGuire ANZIIF (Assoc) CIP
Director
Unit 12 – 64 First Ave Mount Lawley WA 6050
PO Box 429 Mount Lawley WA 6929
Tel.: (08) 6424 8566 / Fax: (08) 9371 5664  M:0448 357392
E-mail: phil@excelinsurance.com.au
Web: LinkedIn:au.linkedin.com/pub/phil-mcguire/45/630/a72/

GENERAL INFORMATION

Stamp Duty – WA 
Department of State Revenue  http://www.finance.wa.gov.au/cms/content.aspx?id=2055 

Small Business Development Corporation 
http://www.smallbusiness.wa.gov.au/
Lots of useful information and assistance for small business 

Chamber of Commerce WA
http://www.cciwa.com/
Membership required but great resources for small businesses 

The Western Australia Police for National Police Certificate

https://www.police.wa.gov.au/Police%20Direct/National%20Police%20Certificates

Working with Children Check

https://workingwithchildren.wa.gov.au/

Current Guide to National Quality Framework for Childcare Centres in Australia

https://www.acecqa.gov.au/sites/default/files/2018-11/Guide-to-the-NQF_0.pdf

Withholding Tax for Foreign Investors Property Sales over $750,000

https://www.ato.gov.au/general/capital-gains-tax/in-detail/calculating-a-capital-gain-or-loss/capital-gains-withholding—a-guide-for-conveyancers/#Excludedtransactions

Business Plan Template

Business Plan

BOOK-KEEPING SERVICES

Centauri Bookkeeping
Lidia Lovric Hrbut – Registered BAS Agent
M: 0408 192 895
T: 9571 8444
E: centauri@iinet.net.au

LEGAL SERVICES

Composite Law
Robert Ross – Director
Suite 4, 28 Outram Street, West Perth WA 6005
T: (08) 6162 2399
F: (08) 6162 2335
E: robert.ross@compositelaw.com.au
P: PO Box 7920, Cloisters Sq, WA 6850
www.compositelaw.com.au

Law Central Legal Pty Ltd
Greg Mohen – Consultant
Level 1, 18 Richardson Street, West Perth WA 6005, Australia
PO Box 443, West Perth WA 6872,
T +61 8 9476 4999
M 0431 992 841
E greg.mohen@lawcentrallegal.com.au

VALUERS/CHILDCARE

OPTEON

Duncan Cameron | FAPI CPV, BSc, BBus (Val & Land Econ)
Director – Specialised & Advisory
D. 08 9488 4802
M. 0413 449 477
E. duncan.cameron@opteonsolutions.com
A. Level 2, 1 Hood Street, Subiaco, WA 6008 Australia
W. OPTEONSOLUTIONS.COM

Doug Shorten | AAPI CPV, BBS (VPM)
Senior Valuer
D. (08) 9488 4866
M. 0418 991 077
E. doug.shorten@opteonsolutions.com

MMJ Real Estate (WA) Pty Ltd
Chris Geers – Managing Director
Address: Level 6, 12 St Georges Terrace, Perth WA 6000
Phone: 08 9325 5880
Fax: 08 9325 5881
Mobile: 0410 493 057
Email: chris.geers@mmj.com.au
Web: www.mmj.com.au

CBRE | Valuation & Advisory Services
Rick Gismondi AAPI CPV | Valuer
Address: Level 25 | QV1 250 St Georges Terrace | Perth WA 6000
Phone: 08 9320 0058
Fax : 08 9481 1296
Mobile: 0416 194 227
Email: rick.gismondi@cbre.com.au
Website: www.cbre.com.au