[2025] VCAT 419
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2025-05-13
Tang AM, Mr J
Original judgment source is linked above.
Review and Regulation List - Education and Care Services National Law (Victoria), ss 21, 31, 32, 33, 182, 186, 193 - Review of decisions by respondent to prohibit first applicant from providing education and care to children and to cancel the second applicant's approval to operate an early learning centre - Failure of applicants to accept and comply with decisions pending their review - First applicant's claims of corruption by her sister, brother-in-law and respondent not relevant - Findings that applicants are not fit and proper and/or that their operation of or involvement with early learning centre would constitute an unacceptable risk to the safety, health or wellbeing of any child being educated or cared for by the centre - Decisions under review affirmed.
14 March 2025 (respondent) and 28 March 2025 (applicants)
Tran v Secretary to the Department of Education (Review and Regulation) [2025] VCAT 419
(Collectively, these are referred to as the 'Decisions under Review'.)
(a) ... the approved provider or a person with management or control of an education or care service operated by the approved provider is not a fit and proper person to be involved in the provision of an education or care service; or > > (b) ... the continued provision of education and care services by the approved provider would constitute an unacceptable risk to the safety, health or wellbeing of any child ...; or
...
(e) the approved provider has breached a condition of the provider approval ...
(a) to remain on the education and care service premises; or
(b) to provide education and care to children.
(a) providing education and care to children ...
(b) being engaged as an educator ... employee, contractor or staff member of, or being a volunteer at, an education and care service;
(c) carrying out any other activity relating to an education and care service.
(For completeness, the Tribunal understands that Ms Tran has re-applied for registration as an early childhood teacher, but there is no evidence in relation to that application before the Tribunal and, in any event, it is not relevant to the present proceeding).
Take note that you must immediately cease providing education and care at Smart Children Early Learning Centre from the date of this notice and for 3 months from the date of this notice.
On 3 September 2024, authorised officers attended the [Centre] and found [Ms Tran] on the service premises, in contravention of section 187 of the National Law.
...
On 25 September 2024, an authorised officer observed children entering the [Centre]. A phone call to [Ms Tran] confirmed that the service was operating with 14 children in attendance, in contravention of section 103 of the National Law.
On 26 September, authorised officers attended the [Centre]. [Ms Tran] was in attendance at the education and care service premises and was operating the service, with children in attendance, in contravention of section 103 and section 187 of the National Law. [Ms Tran] did not allow authorised officers to enter the service premises.
The first thing is we want to offer again to buy the land [on which the Centre is located] following market price from the landlord [Hanh].
Secondly, the landlord [Hanh] at the hearing on 18th February 2025 as witness ... confirmed that the signature on the statutory declaration that our company [VNPL] is allowed to operate the childcare centre continuously on the land [in] Burden Street SPRINGVALE is her signature, and [Hanh] also confirmed that the signature of the transfer of provider approval to [VNPL] is also her signature, in opposition to what the [Department] states that we faked [Hanh]'s signature, to start the reassessment of [VNPL] and to start the reassessment of Fitness and Propriety [of] the person [with] management and control [being Ms Tran]. Hence, in the reassessment we are in the right, and the [Department] has no reasons to cancel the person of management and control [of Ms Tran] and [the Centre's] service ... and provider approval [for VNPL]. We want our [Centre] to reopen at the earliest [date] as possible. We want the prohibition of [Ms Tran] and the service and provider approval of [VNPL] to be all restored. We also want the working with children check for both my husband [Mr Ta] and myself [Ms Tran] to be restored (no exclusion). We also want [Ms Tran's] VIT registration as a Kindergarten Teacher to be approved. Also, for the [Department] to compensate for all of the financial losses of our [Centre] from the closure of our centre (Childcare Subsidy was cut from Monday 18th November 2024). The [Department] also needs to compensate for all of our financial losses when we reopen as well because we need to reestablish all of our customers again. The cost of all of these financial losses will be provided as a statement by an external company.
The Landlord [Hanh] also needs to compensate all of the financial losses she and her husband [Mr] Chinh Ta caused to our [Centre] from June 2022. The reasons are:
the National Law and Regulations require strict compliance in order to ensure the safety, health, and wellbeing of the inherently vulnerable children educated and cared for by services such as that operated by the Applicants. The Applicants' demonstrated unwillingness and/or inability to comply with the requirements, and their failure to remedy non-compliances of which they are notified, compel the conclusion that the Applicants are unlikely to strictly comply with the regulatory requirements in future.
(a) the long period of time over which that conduct occurred;
(b) the Tribunal's concerns about her lack of insight into her shortcomings;[85]
(c) the lack of credibility of her evidence in the earlier Tribunal proceeding;[86] and
(d) the Tribunal's findings as to the relevance of the [Ms Tran's] conduct in the secondary school environment to assessing her ability to work in the early childhood environment.[87]
the continued provision of education and care services by [VNPL] (given [Ms Tran]'s role with [VNPL]) would constitute an unacceptable risk to the safety, health or wellbeing of any child being educated and cared for [at the Centre] so as to compel the conclusion that the Prohibition Decision should be affirmed.
Applicants' flagrant disregard for the requirements of the National Law (and regulations)
(a) [Ms Tran] breached the terms of the Prohibition Notice, between 23 August 2024 and 8 October 2024, by:
(i) providing education and care to children [at the Centre]; and/or
(ii) being engaged as an educator and/or staff member at [the Centre]; and/or
(iii) carrying out other activities relating to the education and care service provided by [the Centre],
and she did so knowing that she was prohibited from engaging in such activities.
(b) [VNPL] continued operating an education and care service when its provider approval to do so was suspended, between 13 September 2024 and 8 October 2024 and that it did so in circumstances where it knew that it was not permitted to operate and/or was reckless in respect of that fact.
(c) [Ms Tran] unlawfully refused Authorised Officers [from the Department] entry to [the Centre] on 26 September 2024.
(a) critically, the implausibility and lack of credibility in respect of [Ms Tran]'s evidence that she held the honest but mistaken view that [the Centre] was permitted to continue operating even after the Suspension Decision ... [Ms Tran]'s willingness to attempt to mislead the Tribunal in respect of this evidence bears adversely on her credibility more broadly;
(b) her ... evidence about the 25 September 2024 phone call with Ms Collings, in which [Ms Tran]:
(i) first said "it might have been from a no caller ID... so I wasn't really sure who I was speaking to";
(ii) appeared to acknowledge the phone call may have occurred, stating "if I called back, then it might be the education number";
(iii) initially claimed not to be able to remember the conversation.
(iv) then (as the import of the conversation became clear) said "I'm not even sure I even had a conversation with" Ms Collings; and
(v) then said "I don't think T[h]erese Collings ever called me";
(c) [Ms Tran]'s evasive and non-responsive answers to certain to the questions asked of her in cross-examination, in that [Ms Tran]:
(i) in respect of the question of why [VNPL] continued operating between 18 September 2024 (the date of the suspension) and 23 September 2024 (the date of the VCAT application) [Ms Tran]:
(A) was initially evasive ("I already answered that question" when she had not); and
(B) then unresponsive (giving answers that did not address the question);
(ii) refused to answer the question of what her claimed belief that the VCAT application operated as a stay was based on;
(iii) failed to give a responsive answer to many questions;
(d) [Ms Tran]'s initial refusal to make a proper and obvious concession, that the metal barbeque being used to cook food [on 26 September 2024 while children were running about] was hot, stating "I don't know, I'm not sure";
(e) the fact that [Ms Tran] gave categorical and unconditional evidence that the Authorised Officer's evidence that a two-to-three-year-old child was within 20-30cm of the hot barbecue, unsupervised was "not true" before later being forced to concede she could not know whether the allegation was true or not, because she was outside the [Centre] at the relevant time; and
(f) the lack of credibility in respect of [Ms Tran]'s evidence as to the reasons she refused the Authorised Officers entry on 26 September 2024 ...
74 Even if the Tribunal were to find Ms Tran was not physically present at the Centre after the Prohibition Notice was issued, the Secretary submits the Tribunal might conclude she 'nonetheless contravened the Prohibition Notice'.[103] This is because the notice prohibited her 'carrying out any other activity' (i.e. apart from educating children) relating to the Centre and, even on her own evidence:[104]
(i) she remained a director of [VNPL] at all times and so was a person with management and control within the meaning of s 5A(a)(i) of the National Law, and thus a person with "authority or responsibility for, or significant influence over, the planning, direction or control of the activities or the delivery of the education and care service";
(ii) [Ms Tran] attended [the Centre] to liaise with Authorised Officers on 3 September 2024 and 26 September 2024;
(iii) [Ms Tran] remained nominated supervisor of the service.
VNPL continued operating the Centre while its approval to do so was suspended
Ms Tran unlawfully refused Authorised Officers access to the Centre
Applicants' demonstrated inability or unwillingness to comply with National Law and Regulations
Dishonesty in Ms Tran's dealings with the Secretary and/or Tribunal
(a) intentionally lied to the [Secretary] in her 27 August 2024 email[115] when she claimed that she was not attending the service, when (as she must have known) this was not true;
(b) intentionally lied to the [Secretary] on 25 September 2024 when she informed it, in a telephone conversation, that she was not intending to operate the service on the following day when (as she must have known) this was not true;[116]
(c) was not a credible witness in her evidence in [the hearing concerning the VIT's decision to refuse her early childhood teacher registration], as found by the Tribunal [in the VIT Decision]...; and
(d) lied to the Tribunal in [her] evidence on 18 February 2025 ...
The phrase 'fit and proper' is not defined in the National Law but section 13 contains factors which must and may be considered.
More broadly, in the licensing and regulatory framework, the concept of being fit and proper goes to questions of personal character, integrity and propriety and to capacity to undertake the licensed activity. Regard must be had to the statutory context, and by making an assessment of the activities which the statute permits the regulated person to be engaged in and the ends to be served by those activities.
When the question is whether, having regard to its character or reputation, a company is fit and proper, the answer may be given by reference to the conduct, character or reputation of the persons by and through whom it acts or who are otherwise relevantly associated with it.
The expression "fit and proper person", standing alone, carries no precise meaning. It takes its meaning from its context, from the activities in which the person is or will be engaged and the ends to be served by those activities. The concept of "fit and proper" cannot be entirely divorced from the conduct of the person who is or will be engaging in those activities. However, depending on the nature of the activities, the question may be whether improper conduct has occurred, whether it is likely to occur, whether it can be assumed that it will not occur, or whether the general community will have confidence that it will not occur. The list is not exhaustive but it does indicate that, in certain contexts, character (because it provides indication of likely future conduct) or reputation (because it provides indication of public perception as to likely future conduct) may be sufficient to ground a finding that a person is not fit and proper to undertake the activities in question.
(a) Ms Tran failed to comply with her obligations under the National Law over an extended period
In this regard, based on the evidence of the Secretary's witnesses, I am comfortably satisfied that Ms Tran provided education and care services on one or more occasions between the issue of the Prohibition Notice (i.e. 21 August 2024) and the date on which the Tribunal granted an interim stay (i.e. 8 October 2024).
Further, I am also satisfied the evidence establishes that she continued to carry out other activities in relation to the Centre, namely its supervision and management, throughout that period.
By contravening the restrictions imposed by the Prohibition Notice, Ms Tran committed an offence (see [23]).
While it may be the case that, subjectively speaking, Ms Tran thought that she could continue to undertake those activities while she was actively disputing the decision at VCAT, that is no answer to why she continued to do so between the time the Prohibition Notice was issued and the date on which she filed her Application with VCAT (i.e. 23 September 2024).
Further, at a minimum, Ms Tran's decision to continue to undertake those activities after the issue of the Prohibition Notice demonstrates an inability to comply with the National Law on her part. If she did not understand the Prohibition Notice, it was incumbent on her to ask the Department to clarify matters and/or seek legal advice as to her obligations. There is no evidence that she did so.
It is necessary, at this juncture, to consider Ms Tran's primary contention to the effect that the Prohibition Decision should be set aside because the Secretary's investigation of her fitness and propriety was brought about as a result of a false complaint by her sister as to the circumstances in which VNPL obtained the approval to operate the Centre.
It is apparent from the sequence of events (see, especially, at [36]), that one of the reasons the Department commenced an investigation into Ms Tran's fitness and propriety was Hanh's allegations that the transfer of the Centre's approval to VNPL was 'bogus and fraudulent'.
That complaint was false. In this regard, in giving evidence before the Tribunal, Hanh admitted that she had in fact signed the transfer of the Centre provider approval to VNPL.[123]
However, it is also apparent (see [37]) that the Secretary found that Hanh's allegation was not established. Further, the Prohibition Decision was not based on the allegations made by Hanh. Rather, the Prohibition Decision was based on the VIT's decisions to refuse her registration as a secondary school and early education teacher due to the risk she posed to children (see [40]).
Accordingly, the underlying premise of Ms Tran's contention is misconceived. Moreover, it was not open to Ms Tran to simply ignore the Prohibition Decision because she did not agree with it.
Of course, Ms Tran had the right (which she exercised) to seek to have the Prohibition Decision cancelled by the Secretary or any failure to do so reviewed by VCAT. But unless and until the Prohibition Decision was cancelled, a stay was granted by the Tribunal or the Tribunal set the Prohibition Decision aside, Ms Tran was obliged to comply with its terms.
(b) The VIT has refused to renew Ms Tran registration as a teacher and refused to register her as an early childhood teacher
The relevant decisions of the VIT were made on 24 November 2021.[124] As she was entitled to do, Ms Tran sought review of those decisions by VCAT. However:
Moreover, the findings made by VCAT in the VIT Decision are directly relevant to an assessment of whether Ms Tran is fit and proper to provide education and care services. The panel found that:
Among other things, she was a 'law unto herself, teaching according to her view of what should be taught [and] at times failing to apply the curriculum', with the panel being 'highly concerned' that she might take a similar 'cavalier approach' to teaching in an early childhood service.[128]
Further, the Tribunal was concerned about her 'volatile behaviour' which included, 'at times yelling at students and [other] staff [and] making unwarranted allegations towards them', and the potential for repetition of such behaviour in the early childhood environment if she came 'under pressure'.[129]
The Tribunal also raised concerns as to her 'lack of judgment' (in raising unwarranted accusations against others in response to her own failings) and 'lack of credibility' in giving evidence at that hearing, and how these matters might produce 'negative results' or otherwise be of 'great concern' in the early childhood environment.[130]
(c) Ms Tran lacks the management capability to operate an education and care service
In addition to Ms Tran's failure and inability to comply with the Prohibition Decision discussed in paragraph (a), and her obstruction of the Department's officers by refusing them access to the Centre (which is a further offence (see [18]), the number of compliance issues identified by the Department (see [79]), many of which were not addressed before the Centre stopped operating, evidence a lack of management capability on her part.
Further, it is evident that (as the person with management and control of VNPL) she failed to take action to prevent VNPL contravening the National Law after its service approval was suspended (see third bullet point at [88] below).
(d) Ms Tran lied to or misled the Secretary on at least two occasions
I am comfortably satisfied that Ms Tran lied to or misled the Secretary as to her actions and intentions regarding the Centre in her email of 27 August 2024 and her telephone conversation of 25 September 2024 (see [80(a)] and [80(b)]). Honesty is a critical element of character and so goes to a person's fitness and propriety to carry on a regulated activity. This is particularly important when regard is had to the age of children cared for in an early childhood setting and the paramount consideration as to the rights and best interests of the child (see [12]).
which individually and collectively serve to confirm that VNPL is not a fit and proper person in its own right.
Would Ms Tran's or VNPL's continued provision of education and care services at the Centre constitute an unacceptable risk to the safety, health or wellbeing of any child?
Conclusion on Prohibition Decision (and Refusal Decision)
[1] The National Law is given effect as a law of Victoria under the Education and Care Services National Law Act 2010 (Vic) ('ECSNL Act'), s 4.
[3] To the extent that the Applicants wish to pursue these allegations, they should be referred to the Independent Broad-based Anti-corruption Commission.
[5] National Law, ss 3(1) and 5(1) (definition of 'education and care service').
[21] Ibid, s 169(1) and Education and Care Services National Regulations (NSW), r 123.
[32] DBU v Secretary, Department of Education [2017] NSWCATAD 257 [26] (applied in Jump Start Family Day Care Pty Ltd v Department of Education and Training ('Jump Start') [2019] VCAT 1631 [20]).
[35] TJS v Department of Education and Training [2019] VCAT 729 [14].
[46] Leave was granted for the Secretary to rely on these further affidavits.
[49] [2023] VCAT 910 [201].
[52] Memorandum dated 22 November 2022: TB, Tab (2C), [34]-[36].
[53] Compliance Notice dated 27 February 2023 (in respect of the visit on 16 January 2023): TB, 321-339 and Letter advising of an investigation being conducted in relation to the Centre dated 21 March 2024 (in respect of the visit on 2 March 2023): TB, 361-371.
[54] This was confirmed by Service Victoria in an email dated 10 July 2024: TB, 487.
[58] Exhibit SB-1 to the Baster Affidavit [7].
[64] Exhibit TC-1 to the Collings Affidavit [8]-[32].
[65] Ibid [37]-[38], [42], [50]-[51], [53] and [55].
[66] Exhibit JC-1 to the Campbell Affidavit [8].
[82] Tran v Victorian Institute of Teaching [2023] VCAT 910 ('VIT Decision') [233]-[234].
[87] Ibid [236]-[237] and [240]-[241].
[90] Transcript, 18 February 2025 ('Tx'), 128 (lines 24-25) and 131 (lines 20-26).
[93] Ibid [11]-[12] (referencing comments of Brennan J in Drake v Minister for Immigration and Ethnic Affairs (No 2) (1979) 2 ALD 634 at 639 regarding the importance of consistency in administrative decision making).
[102] Ibid [24] (transcript references omitted).
[104] Ibid (source material references omitted).
[105] SCS [25] (citing Tx, 67 (lines 7-30) and 68 (line 24) to 69 (line 3)).
[109] Ibid [27(b)(ii)] (referencing TB, 114 and Tx, 86).
[110] Ibid [27(b)(iii)] (referencing TB 199, line 1 - 13; TB 207, line 9 - 16 and Tx, 90-93).
[111] Ibid [28] (TB and paragraph number reference omitted).
[116] Referencing the Collings Affidavit (in relation to the telephone conversation) and the Campbell and Baster Affidavits (in relation to the operation of the Centre on 26 September 2024).
[117] [2021] VCAT 1481 [133]-[135].
[118] National Law, s 5(1) and ECSNL Act, s 10.
[121] Mr Chooks Halal Chicken Pty Ltd v Primesafe [2018] VCAT 1932 [25] (Senior Member Wentworth).
[122] Snook and Civil Aviation Safety Authority [2010] AATA 582 [445].
[133] See, for example, Chopra v Victorian Institute of Teaching [2024] VCAT 1172 [12].
[134] For example, under the Public Health and Wellbeing Act 2008 (Vic): Blewett v The Secretary, Department of Health [2024] VCAT 725.
[135] See, for example, State of Victoria v Bradto Pty Ltd & Ors [2006] VCAT 685. While there are instances where an order for costs has been made, Gorton J recently referred to such orders having been 'persuasively questioned': Zhang v Oakmont Properties Pty Ltd [2023] VSC 248 [9].
Tran
Secretary to the Department of Education
(1990) 170 CLR 321