Engaging a Full-Time or Part-Time Nanny may prove to be a more sensible and convenient Child Care option for your Family, however there are some Employer Obligations which need to be addressed.
The Australian Taxation Office classifies Nannies as Household Employees. You can register for the Pay As You Go (PAYG) withholding, as you may be required to withhold amounts from payments which you make to your Nanny. Visit for more ATO Information on Household Employees and visit FairWork for great information on Paying Wages to Employees .
The Steps involve.
- Complete the Application to Register for PAYG Withholding and have your Nanny complete a Tax File Number Declaration form.
- Calculate the amount of tax to be withheld using the Withholding Tax Table
- Complete the Activity Statement quarterly and send the amount withheld to the ATO
- Provide your employee with a PAYG Payment Summary, by July 14 each year according to the Australian Taxation Office
The ATO now have a great mobile APP where you can enter in all your Tax and Super details online, then click here to read more.
Call the ATO business line for more information on PH: 132866 or go to www.ato.gov.au
If the Family car is provided for the use of the Nanny, it is the Family/Employer’s responsibility to provide full Insurance coverage. If the Nanny is to use her own vehicle as a condition of employment, an allowance of approximately $0.65 per kilometre for petrol and running costs applies over and above the agreed wage. Please note that the type of vehicle which the Nanny drives determines the exact kilometre rate. These rates are available from the NRMA and the Australian Taxation Office.
If you engage your Nanny for 30 hours or more per week and pay them $450 or more (before tax) in a calendar month, you will be required to pay Superannuation Guarantee for them. Visit for more ATO information on Working out if you need to Pay Super and for further information on your obligations as an employer of household workers go to Superannuation Obligations
We highly recommend a Workplace Agreement which identifies both parties’ expectations of the following:
Weekly or hourly pay rate, car allowance if applicable;
- tax, superannuation and work cover insurance;
- days, hours of work – start and finish times;
- specific duties and any additional duties;
- overtime rates for working outside set times;
- annual recreation leave, sick leave, special leave, pay on public holidays etc;
- conditions of salary review.
- conditions of termination.
A “Model Contract” Sample is available from South Coast Nannies for all Registered Families.
WorkCover – Domestic Insurance
Household Worker Insurance is indispensable if you engage people to be employed in your home. You are required by law to provide Worker’s Compensation for your Employee whilst working for you in your home, if you pay more than $7,500 a year in wages. This is not always covered by your Home and Contents Insurance so you will need to check with your Insurance Company.
All Insurance companies vary in price, but expect to pay between $17 to $60 per annum. Each State has different Regulations regarding WorkCover, so please inquire with your State’s WorkCover body first.
The National Employment Standards (NES) includes 10 minimum Employment entitlements which must be provided for all Employees.
The National Minimum Wage and the NES make up the minimum entitlements for Employees in Australia. An Award, Employment Contract, Enterprise Agreement or other Registered Agreement cannot provide for conditions that are less than the National Minimum Wage or the NES. They cannot exclude the NES.
The NES 10 minimum entitlements include: