(1) The Secretary may reduce, in accordance with the allocation rules, the number of child care places allocated to an approved child care service if:
(a) that number exceeds the number of child care places provided by the service; or
(b) that number exceeds the number of child care places that the service is, under a law of a State or Territory, licensed to provide.
The reduction must not be greater than the number of excess places.
(2) Before the reduction, the Secretary must (unless the provider has informed the Secretary in writing that the allocated number may be reduced) give a notice to the approved provider of the service that:
(a) states that the Secretary proposes to make the reduction; and
(b) states the number of places by which the Secretary proposes to reduce the number of places allocated to the service; and
(c) invites the provider to make written submissions to the Secretary about the proposed reduction; and
(d) is not inconsistent with the allocation rules.
(3) If the approved provider of the service has informed the Secretary in writing that the number of child care places allocated to the service may be reduced, the Secretary may give the provider a notice under subsection (2) before making the reduction.
(4) The Secretary must have regard to any submissions made by the approved provider of the service in accordance with an invitation under paragraph (2)(c) in deciding whether to make the reduction.
(5) If the Secretary reduces the number of child care places allocated to an approved child care service, the Secretary must give the approved provider of the service a notice that states:
(a) the number of places by which the number of places allocated to the service is reduced; and
(b) the day on which the reduction takes effect, which must not be earlier than the day on which the notice is given; and
(c) the number of places allocated to the service, taking account of the reduction.