Employer Resources - AU



Paying your Nanny - Australia


TAX & PAYG withholding and household employees


If you employ household staff such as nannies and cleaners, you may have to withhold an amount from any payments you make to them, even if you pay them in a private capacity.


Under pay as you go (PAYG) withholding, you may be required to withhold amounts from payments you make to your household employees, such as nannies or housekeepers. The amounts withheld are sent to the Tax Office

Step by step guide for household employers - http://www.ato.gov.au/businesses/content.asp?doc=/content/18937.htm




The Australian Taxation office states on its website the following;

You do not have to make Superannuation contributions for some employees. These include employees who are:

  • Performing work of a private or domestic nature of not more than 30 hours per week, for example a part time Nanny or casual babysitter or
  • Are covered by a bilateral superannuation agreement
  • Under 18years of age and are working no more than 30 hours per week
  • Paid less than $450 in a calendar month
  • Are 70 years of age and over

In all other cases, you must make superannuation contributions on behalf of your employee.

For more information, visit the Australian Taxation office website. http://www.ato.gov.au/




Domestic workers compensation is a requirement by law for all employers. Upon hiring a Nanny permanently or part time you will be required by law to obtain domestic workers compensation insurance. Domestic workers compensation covers you should your employee have an accident while on your premises and / or out and working for you. It is currently around $40 per year and it is the same rate throughout NSW no matter what Insurance company you go with. Read the following Workcover document to explain further or use the links below for information on your state.


Public Liability for Nannies


We recommend our Nannies obtain public liability & professional indemnity insurance through http://www.nannysure.com.au. This policy is affordable, can be paid off over 12 months and is held within Australia through Finsura Insurance Brokers.


Nanny contracts


As part of our service, we will create a custom made employment contract for you to use for your placement. Generally it will include the job details and any terms of employment that you wish your nanny to agree to. We are very thorough and endeavour to ensure that all the important aspects of employing a Nanny are covered to accommodate for both family and employee. The terms and conditions of the contract should be discussed and mutually agreed to prior to being signed.


A contract is a legally binding employment document and should be treated as such by both parties. Changes are possible with mutual agreement. Please keep in mind that as the employer, it is your responsibility to provide a contract and to ensure that a PAYE arrangement is put in place to make sure that your Nanny is paid on time and that all deductions are taken for tax and national insurance contributions. There are companies who will operate a payroll system on your behalf and may also offer a contract that you can modify to fit your particular job offer. Some even offer legal advice as part of their payroll package.