How much should your family pay for a nanny? What are the factors determining the cost of a nanny? Every family is unique with the care they require, so we have put together this guide to easily understand the value of engaging a nanny that’s right for you.
What type of caregiver is right for you?
First, you need to understand what type of care you need for your family.
- Do you need someone to pick-up and drop-off your children from school?
- Do you need a trained professional caring for your children?
- Are you comfortable with someone who’s studying at uni or would you prefer someone with many years of experience?
You can read about the different kinds of care here.
Rates of pay for nannies & babysitters
Once you understand what type of care you are after, you can now consider how much this care may cost.
According to the Fair Work Ombudsman, when you hire a nanny you are more than likely engaging them as an employee, rather than a contractor. This means they are covered under the Miscellaneous Wage. There is an exception to this for parents in Western Australia, as a nanny may be considered as a worker in domestic services in a private home – you should contact Wageline for further information on this matter.
A good sense check for care is to expect to pay in the low-$20s per hour for less experienced care, and in the high-$20s or low-$30s per hour for more experienced care.
The most important thing is that you are paying at least the minimum award rate, which are detailed below.
Part-time and full-time rates of care can range from:
- $19.49 to $24.77 per hour during the day
- $23.39 to $29.72 per hour during the evening, and
- $23.39 to $37.16 per hour on weekends.
Casual rates of care can range from:
- $24.36 to $30.96 per hour during the day
- $28.26 to $35.92 per hour during the evening, and
- $28.26 to $43.35 per hour during weekends.
The great thing about hiring a nanny is you get to determine the arrangement that suits your needs. Some nannies will provide care for more than one family and can easily work a few hours each day for you. Others are available to provide full-time care. Many families also share a nanny to bring down the cost further.
If you are interested in a live-in nanny or au pair, you may include non-cash benefits like rent as part of the package. If you do this though you must register for Fringe Benefits Tax.
Do I need to pay my nanny’s tax and super?
Taxes and Superannuation must also be considered when hiring a nanny. If your nanny is an employee, you are required to pay super on top of their wages if they work 30 hours or more per week and receive $450 or more before tax in a calendar month. According to the ATO, you must also register for PAYG withholding for tax purposes.
Benefits are required, too
If you plan on engaging a nanny as an employee, there will be benefits that they are entitled to which you need to consider as well.
Like any employee, part-time and full-time nannies are entitled to leave benefits, like holiday and sick leave.
For live-in nannies, it will be necessary to provide them with a comfortable private room. A private bathroom isn’t required, though it would no doubt be appealing to any potential nannies! Free room and board is a condition of virtually all live-in nanny arrangements.
Sometimes a nanny will also need the use of a car while working, to drive your child to and from activities and appointments.
And don’t forget insurance
If you hire a nanny as an employee, you must get Workers Compensation Insurance to cover your nanny in the event of an accident. Insurance is different in Australia for every state and territory. For the full list of coverage across Australia, visit the Fair Work Ombudsman here.
The work schedule
Another consideration of the nanny and the work that he or she does for you is the work schedule. If you have a live in nanny, you may think that the nanny would be working any time that the child is around. The fact is that a nanny is like any other employee, requiring a schedule that is fair and appropriate.
It is helpful to list the number of hours your nanny is required to work in a contract. If you require the nanny to work over these hours you will need to consider overtime arrangements.
It’s good to talk about expectations with your nanny before hiring them, and ensure that all agreements are stated and agreed to in a contract.
The right solution for your family
The best thing to do is consider your budget. If you have a few hundred dollars available per week, there is a lot that you can receive from an extra set of caring hands. What are the biggest challenges with your family that an extra person could help with? How much more will your life improve if you receive this help?
Most nannies are highly flexible and can work for many families at the same time. This means you can engage them in ways that work best for you, or you can share with other families to make it cheaper.
We also highly recommend the services of a domestic payroll provider. Not only will a professional ensure you are meeting all your obligations, but also ensure you claim all the financial benefits from your engagement.
Thousands of parents have used We Need A Nanny to find the right fit for their family within their budget. You can read about their stories here.
The content and information, including statements, opinions and documents (Information) contained on this WeNeedANanny website Site (Site) is for general information purposes only. It does not take into account your specific needs, objectives or circumstances, and is not advice, and in particular, is not a substitute for professional legal, accounting or tax advice. Any reliance you place on the Information is at your own risk.
Before acting on any Information, we recommend that you consider whether it is appropriate for your circumstances, carry out your own research and seek professional advice, where necessary.