Information About Employing Nannies

Print

• Job Description: Describe duties re childcare, domestics, food preparation etc.

• Pay / Remuneration: State the rate per hour / day / week / base salary. Consider payment method and frequency. Allow for other expenses (ice-cream outings!), allowances (e.g., petrol) or reimbursements. Plan remuneration review after x months. For information about the Australian Pay and Classification Scales go to www.workchoices.gov.au . For assistance with payroll (calculating super and tax and setting up an online payroll system) we can recommend ePayroll.com.au .

• Term of Employment: Expectation re: the duration of the employment. Plan probationary period and performance review dates. Agreement re: notice of termination.

• Conditions of Employment: Normal hours of work, overtime, leave entitlements (annual leave, public holidays, sick leave).

• Superannuation: According to the law, employers are required to pay superannuation if a nanny is working >30 hrs/wk in a childcare or domestic capacity. Superannuation is calculated based on 9% of the gross wage and paid into a nominated fund. For more detail see the ATO's Superannuation Guarantee page. For more information call the Superannuation Hotline on 131020.

• Insurances: Explore Public Liability Insurance to cover accidents. Some cover may be under Home & Contents policies. Otherwise nannies may consider taking out cover with an insurer. They can contact www.nannysure.com.au for further information. Consider Automobile Insurance if required.

• Domestic Workers Compensation: Under Workers Compensation legislation you may be required to insure your nanny for Domestic Workers Compensation Insurance. Legislation varies from state to state and may be available as an extension to your existing home and contents policy (provided your insurer is licensed to sell it). Please contact WorkCover in your state for further information.

• Income Tax: visit www.ato.gov.au to find out about tax obligations. In brief - you are required by law to withhold tax (you can apply at the ATO for a Withholding Payer Number) and your employee will need a Tax File Number.

• Child Care Benefit: is a payment to help families who use 'approved' or 'registered' care. You must meet eligibility criteria (e.g., immunisation requirements, residency requirements and use approved/registered care) to gain the Child Care Benefit (CCB). It is also means-tested. For more information regarding the CCB please see www.familyassist.gov.au or read their fact sheet.

• Registered Carer: Some families may be able to claim a benefit if they use 'registered care'. Nannies must register through the Family Assistance Office and must meet certain requirements (be 18+, have a Tax File Number, meet any licensing requirements in your state). For more information please contact www.familyassist.gov.au or ask your nanny to call 13 6150 between 8am and 8pm Monday to Friday. They will send an application form to the nanny.

• Child Care Tax Rebate: The Child Care Tax Rebate covers 50 % of out-of-pocket child care expenses for 'approved' child care, with a rebate of up to $7,500 (indexed) per child per year, for eligible recipients. You must meet eligibility requirements to claim this rebate, which is processed when you lodge your tax return. 'Approved care' is usually formal care centres/services (e.g., long day care, family day care) and some in-home care by 'approved' providers. To find an approved child care service in your area, you can ring the Child Care Access Hotline on 1800 670 305 (TTY 1800 639 327) between 8am and 9pm AEST Monday to Friday. For more information see www.familyassist.gov.au .