If you are entering the childcare industry, you will quickly run into two terms that sound almost the same: provider approval and service approval. We have had a few questions about this, and people constantly mix the two up, so today we want to explain them properly. They are two different things, and you need both.
The simplest way to understand it
Provider approval gives you the ticket to get into the childcare business. Service approval gives you the right to open a specific childcare centre. Think of provider approval as your driver's licence: it says you are allowed to operate. Service approval is like registering a particular car so it can legally be on the road. The licence is about you. The registration is about the specific vehicle.
What is provider approval?
Provider approval is the legal permission for a person or company to operate childcare services under the National Law. It assesses whether you are a fit and proper person to be involved in providing an education and care service. This is not a single test you pass or fail. The regulator forms a view by looking at matters like your criminal and financial history and your management capability, together with the provider approval knowledge assessment.
It is granted by your state or territory regulator, but once you hold it, it is recognised nationally. For example, if you gain provider approval in Victoria and later want to open a centre in New South Wales, your provider approval still stands. You do not need a new one. You would simply apply for a service approval for the new premises in that state.
What is service approval?
Service approval is the permission for one specific service to operate at one specific premises. It is tied to the location, so this is where the physical place comes under the microscope, including whether the premises are designed to allow proper supervision under Regulation 115. Every centre you operate needs its own service approval, though they can all sit under the one provider approval. A single approved provider can hold many service approvals.
This also matters when you take over an existing centre. If you buy an existing childcare business, the service approval is transferred to you as the new provider, rather than applied for from scratch, with both parties consenting and notifying the regulator. If instead you are opening a brand new centre, for example in premises you are leasing, you apply for a new service approval.
Why you need both, and in what order
The order matters. You must become an approved provider first, and only then can you apply for service approval for your centre. Provider approval alone does not let you open a centre, and you cannot get service approval without being an approved provider. The two work together: one approves you to be in the business, the other approves the specific place you will run.
How long do they take to get?
The two approvals also differ in how long they take, which matters for planning your opening. The regulator generally makes a decision on a provider approval application within 60 days, and on a service approval application within 90 days, so service approval takes longer. One important point: these timeframes only start once you have lodged a complete and valid application. An incomplete application does not start the clock, which is why getting the application right the first time can save you weeks.
Does provider approval expire?
This is one of the most misunderstood points in the whole process, so let's clear it up with the actual law. No, a provider approval does not expire on its own. Under section 17 of the National Law, a provider approval continues in force until it is cancelled or surrendered. There is no automatic end date counting down.
But there is a catch. Under section 31(f) of the National Law, the regulator may cancel a provider approval if you have not operated any education and care service for a period of more than 12 months, including any period of suspension. This is a power the regulator can choose to use, not an automatic switch, but it is genuinely used. Regulators publish lists of provider approvals cancelled for exactly this reason, and in 2025 a Victorian cancellation on these grounds was upheld on review.
So the honest answer sits between the two myths. Your provider approval will not quietly vanish the moment you look away, but it is not something to sit on indefinitely either. Once more than 12 months pass with no service operating, you are exposed to cancellation. And if an approval is ever cancelled for non-operation, you can reapply.
Where does CCS Approval fit in?
There is also a third approval, Child Care Subsidy approval, which is separate again and handled by the Australian Government rather than your state regulator. It is what allows your centre to receive subsidy payments. It is a different process from the two above, and we will explain it in a future article.
How Childcare Ready can help
At Childcare Ready, we guide you through the whole approval journey, provider approval, service approval, and what comes after, so you understand each step and apply in the right order without costly delays. Whether you are just starting to plan or ready to apply, contact us, and we will help you map out the path for your situation. You can also start with our free first lesson to get a feel for how it all fits together.
