Engaging the Services of a Permanent Nanny – Taxation obligations as an employer
Nannies are not eligible to hold an ABN, therefore you cannot engage a Nanny on a contractor basis, in order to comply with the ATO you need to employ the Nanny, even if it is for just one day a week. This is all fairly standard and straight forward process and in practice is not as arduous as it may seem initially.
For perm part time & Full Time Nanny placements, we will guide you through the employment process step by step….it’s really easy!
Workers Compensation Insurance
Parents, if you hire or engage the services of a Nanny either on a permanent or temporary basis, and you are or will be paying out approx $7500 or more in wages, within a 12 month period to that individual, you will need to take out a Workers Comp Policy, or adjust your current one accordingly.
PLEASE NOTE: Domestic Workers Compensation no longer exists. The cost of your policy will depend upon the total/estimated wages paid for that 12 month period to that individual. The current calculation regardless of the insurer is approx 1% of the cost in wages.
Example 1: A Family employs a permanent Nanny for 40 hours a week at a cost of $1000 g per week = $50,000 p/a
The approx cost of their Workers comp policy will be $500 per year.
Example 2: A Family engage a Temporary 3 Nanny for 3 months at a cost of $750 g per week = $9,000 p/a
The approx cost of their Workers Comp Policy will be $90
For information and to obtain a policy call Kate at GIO on: 98469518
Childcare Rebate & Benefit
Currently, Nannies or what is referred to as ‘registered care’ arrangements are not eligible for Childcare rebate. CCR legislation is currently under review, we will alert our clients to any changes as that information becomes available to us.
For Permanent placements please click here to be directed to the ATO – Hiring a Domestic Worker page