2025 Guide to Managing Payroll for NDIS Support Workers

What families need to know when hiring in-home help using self-managed NDIS funding

Every family’s situation is different, and for many, accessing in-home support through the NDIS makes everyday life more manageable. If you're self-managing your NDIS funding, you may already know that you have the freedom to directly hire support workers, whether that’s a carer, nanny, cleaner, or gardener.

But with that flexibility comes a new role: employer.

From tax to Superannuation to workers’ comp, hiring someone privately means taking on a range of obligations. If you’re already juggling care needs, navigating this can feel overwhelming. That’s where Pay The Nanny can step in, to help families like yours stay compliant while keeping things simple.

Can I Use My NDIS Funds to Hire Someone Directly?

Yes, self-managed NDIS participants can choose to use their funding to employ support workers directly. This gives you full control over who works with your family, what tasks they do, and when they do them.

You’re also free to combine this with other support arrangements, such as contractors or agency services.

Before you start, it's important to determine if the person you're hiring is legally considered an employee or a contractor. The ATO provides a decision tool to help with this.

Still unsure? We're happy to walk you through it.

What You’ll Be Responsible For as an Employer

If you’re hiring someone as an employee using NDIS funds, you’ll need to manage the following:

Register for a Withholding Payer Number with the ATO
Arrange Workers’ Compensation Insurance
Ensure safe working conditions in your home
Negotiate and agree on pay and conditions
Withhold tax and submit to the ATO
Pay Super if required (more on this below)
Provide payslips and issue end-of-year summaries
Keep up with Fair Work Award rates and entitlements
Ensure your worker has up-to-date Police and WWVP clearances

Need help with a contract? We provide templates to make the onboarding process easy and professional.

Tax and PAYG Withholding

When you hire a support worker as an employee, you're generally required to withhold tax (PAYG) from their wages, even if you don’t operate a business or have an ABN.

This process includes:

Registering for a Withholding Payer Number (WPN) with the ATO
Submitting withheld tax to the ATO on time
Issuing compliant payslips and year-end payment summaries

However, if you’re using Pay The Nanny, we take care of all of that for you.

· We register with the ATO on your behalf

· We handle all PAYG withholding and reporting

· We issue payslips, manage STP (Single Touch Payroll) reporting, and send payment summaries

It’s one less thing for you to manage, and a big reason why many families using NDIS funding choose us for peace of mind and full compliance.

Superannuation Requirements

As of July 2025, the minimum Superannuation Guarantee (SG) rate is 11.5% of ordinary time earnings (OTE), set to rise to 12% in 2026.

For domestic employees, including NDIS support workers hired directly by families, you are only required to pay Super if they work more than 30 hours per week. This threshold applies regardless of their earnings.

While it’s not mandatory under the 30-hour threshold, many families choose to pay Super voluntarily. It can improve job satisfaction, help with staff retention, and show your employee they’re valued.

Super can be managed in several ways under your NDIS plan:

Self-managed (you make payments directly)
Managed by a nominee
Managed by the NDIA or a registered plan manager

Check your Super obligations using the ATO’s tool

Workers’ Compensation: Non-Negotiable

All employers, including families hiring help at home, must hold Workers’ Compensation Insurance. This covers medical costs and income protection if your support worker is injured on the job.

Each state and territory has its own scheme and thresholds:

QLD – WorkCover QLD
NSW – icare/State Insurance Regulatory Authority
VIC – WorkSafe Victoria
SA – ReturnToWork SA
WA – WorkCover WA
TAS – WorkCover Tasmania
ACT – WorkSafe ACT
NT – NT WorkSafe
Norfolk Island – Contact local authority

Note: You may be exempt from paying premiums if wages fall below a certain limit, but registration is often still required.

Public Liability & Vehicle Insurance

Public liability insurance isn’t mandatory, but it’s a smart precaution. It protects you if someone is injured or property is damaged due to the actions of your support worker.

Already have home and contents insurance? Check if it covers incidents involving employees or in-home help.

Also check your car insurance if your worker is driving your vehicle - age or license restrictions can catch you out.

How Much Should I Pay My NDIS Worker?

As a self-managing participant, you're allowed to negotiate the hourly rate - but you must still comply with relevant Award wages and conditions.

Most in-home care roles fall under the Social, Community, Home Care and Disability Services Industry Award. This includes entitlements like:

Minimum hourly rates
Overtime and penalty rates
Annual, personal, and public holiday leave

Visit Fair Work's Pay Guide to confirm you're offering fair and legal rates.

Staying Compliant with the ATO

Keeping a simple payroll checklist can make life easier:

Draft a compliant employment agreement
Track work hours, leave, and overtime
Issue payslips for every pay run
Submit PAYG tax and Super payments on time
File year-end summaries
Keep up with ATO updates and Fair Work rules

Sounds like a lot? That’s where we come in.

Why Use Pay The Nanny?

At Pay The Nanny, we specialise in payroll for domestic employees and that includes NDIS support workers.

You stay in full control of who you hire and what they do, while we handle the admin behind the scenes:

PAYG tax lodgement
Super calculation and payments
Payslip generation
STP reporting
End-of-year summaries
Compliance tracking

With simple pricing and no lock-in contracts, it’s a convenient way to stay compliant and manage the payroll for your NDIS support worker.

Get in Touch

Whether you’re hiring an NDIS support worker, in-home carer, a nanny or any other domestic helper, we’re here to support you. Let us take care of the tax and payroll, so you can focus on what matters most - your family.

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2025 Guide to Managing Payroll for NDIS Support Workers