Engaging a full-time or part-time nanny may prove to be a more sensible and convenient option for childcare for your family however there are some Employer Obligations that need to be met.
The Australian Taxation Office classes 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 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 enter in all your tax and super details online, click here to read more.
Call the ATO business line for more information on PH: 132866 or go to www.ato.gov.au
If a car is provided for the use of the nanny, it is the 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 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 have 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 highlights 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 time;
- annual recreation leave, sick leave, special leave, pay on public holidays etcetera;
- conditions of salary review
- conditions of termination.
A Model Contract Sample is available from the Nanny Agency 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 work cover so please inquire with your state’s WorkCover body first.
Child Care Benefit
The Child Care Benefit (CCB) is a payment to help families who use ‘approved’ or ‘registered’ care. To be eligible for Child Care Benefit you need to meet all of the following:
- use approved or registered child care
- you are responsible for paying the child care fees for your child
- your child is immunised (or on an immunisation catch-up schedule) or is exempt from the immunisation requirements
- meet the residency requirements
South Coast Nannies are individually registered through the Family Assistance Office and can provide receipts for work related care to claim the Child Care Benefit. Nannies fall under the ‘registered care’ category when it comes to the Child Care Benefit.
For more information on registered carers, visit Family Assistance or call 13 6150 or visit http://www.humanservices.gov.au/customer/services/centrelink/child-care-benefit
The National Employment Standards (NES) are 10 minimum employment entitlements that have to be provided to 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 can’t provide for conditions that are less than the national minimum wage or the NES. They can’t exclude the NES.
The 10 minimum entitlements of the NES are: