FAQ’S for parents hiring directly

Nannies can be engaged as either employees or independent contractors. However, we encourage taking a professional employee arrangement for more stability and compliance with employment laws.
Nannies are covered under the Miscellaneous Award. As the employer, it’s your responsibility to adhere to the conditions in this Award. For more information, refer to the Fair Work website. Mini Connections acts as a referral agency and does not provide any advice surrounding the award and/or payroll.
As an employer, you’ll need to provide your nanny with a tax declaration form and register to withhold tax. You must also provide pay advice records and submit PAYG payment summaries. You can estimate how much tax to withhold for each pay period using the ATO’s tax withholding calculator.
We strongly encourage you to have one in place outlining the working conditions. We can provide a rough guide for this agreement, but it’s important to ensure both parties understand the terms of employment.
Full-time employees are entitled to at least 4 weeks annual leave for each 12 months of service, while part-time employees receive pro-rata entitlements. Sick leave for full-time employees is 10 days per year. For more details, you can use the P.A.C.T Calculator.
As an employer, you must pay for each employee 11.5% on top of their wage if they work 30 or more hours per week. This applies whether your nanny is full-time, part-time, or casual. Learn more about superannuation obligations on the ATO website.
As a full-time employee, you are entitled to a minimum of 20 days of annual leave each year. If you’re part-time, you’ll receive leave on a pro-rata basis. You are also entitled to 8 days of sick leave in your first year, or a pro-rated amount depending on your hours. Make sure to check your state’s specific entitlements.
It’s highly recommended to have insurance to cover domestic employees in case of injury at the workplace (your home). In Queensland, for example, Household Worker Insurance costs around $50 and provides 2 years of coverage. Check your state’s legislation for insurance requirements.
If your nanny will be driving the family car, review your car insurance policy to ensure they are covered.
If your nanny uses their own vehicle for work purposes, you must pay them the kilometre rate set by Fair Work, which is currently 88 cents per kilometre. For more information, refer to the Fair Work kilometre rate guidelines.