Pay The Nanny Responds to ABC News Investigation Into Nanny Superannuation Laws | Pay The Nanny [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.com.au/For-Families) [Nannies](https://paythenanny.com.au/For-Nannies) [Agencies](https://paythenanny.com.au/for-agencies) [Pricing](https://paythenanny.com.au/pricing) [Contact](https://paythenanny.com.au/contact) [Sign Up](https://paythenanny.com.au/signup) [Log In](https://paythenanny.com.au/app/login) Article ------- Pay The Nanny Responds to ABC News Investigation Into Nanny Superannuation Laws =============================================================================== By Mark Hudson · 11 May, 2026 ABC News recently highlighted how Australia’s super laws can leave many nannies without retirement savings. Here’s Pay The Nanny’s perspective on why the issue matters and how the nanny industry is shifting towards more formal employment practices. ![Pay The Nanny Responds to ABC News Investigation Into Nanny Superannuation Laws](https://assets.caresies.io/articles/207/conversions/GGitE840DArZDh0P1TIP-webp-featured.webp) The Issue Raised By ABC News ---------------------------- The recent [ABC News investigation](https://www.abc.net.au/news/2026-05-09/super-law-denies-some-domestic-workers-retirement-contributions/106606612?) focused on a little-known exemption within Australia’s superannuation system. Under current rules, domestic workers employed in private homes, including nannies, are generally not entitled to compulsory superannuation contributions unless they work more than 30 hours per week for a single employer. ([ABC News](https://www.abc.net.au/news/2026-05-09/super-law-denies-some-domestic-workers-retirement-contributions/106606612?)) For many nannies, this creates a major gap. Unlike traditional employees who may work for a single business full-time, nannies often split their hours across multiple families. A nanny could work 20 hours for one family and another 20 hours for another family, effectively working full-time overall, while still legally falling outside compulsory super requirements under each separate employment arrangement. ABC interviewed Melbourne nanny Jess Renn, who explained: “I've worked \[a maximum of\] 30 hours \[with\] one family and 20 hours \[with\] another family, so that's where it has greatly affected me because \[in\] any other job, those are full-time hours.” The article also highlighted modelling from the [Super Members Council Australia](https://smcaustralia.com/blogs/cleaners-housekeepers-and-nannies-have-a-right-to-super-too/) estimating that around 40,000 domestic workers could be impacted during the 2026-27 financial year alone. ([ABC News](https://www.abc.net.au/news/2026-05-09/super-law-denies-some-domestic-workers-retirement-contributions/106606612?)) Why This Matters ---------------- At [Pay The Nanny](https://paythenanny.com.au/?utm_source=chatgpt.com), we see firsthand how much the nanny industry has professionalised over the past decade. Today’s nannies are not simply “casual babysitters”. Many are long-term employees providing structured childcare, educational support, transport, household coordination, and emotional stability for families across Australia. For many households, a nanny becomes one of the most important people in a child’s life. That is why this discussion matters. While the current exemption is legal under ATO rules, the reality is that it can leave long-term childcare professionals significantly behind in retirement savings compared to workers in other industries. The ABC article referenced estimates that some domestic workers could retire with approximately $130,000 less in superannuation because of the current rules. The issue also disproportionately affects women, who make up the vast majority of the domestic workforce. The Industry Is Already Moving Towards More Formal Employment ------------------------------------------------------------- One of the biggest changes we have seen in recent years is families increasingly wanting to “do things properly”. That includes: - PAYG tax withholding - Fair Work compliance - Workers compensation insurance - Employment agreements - Leave entitlements - Superannuation Even in situations where superannuation may not technically be compulsory, many families still choose to contribute voluntarily because they recognise the value and professionalism of their nanny. Importantly, upcoming [Payday Super reforms](https://paythenanny.com.au/articles/payday-super-for-nannies) from July 2026 will further modernise how superannuation is administered in Australia. The conversation around domestic worker exemptions is likely to continue alongside these broader reforms. Our View at Pay The Nanny ------------------------- At [Pay The Nanny](https://paythenanny.com.au/), our general position is simple: Nannies should be treated as legitimate employees, not part of an informal cash industry. The nanny industry has evolved significantly, and many of the historical assumptions that originally shaped these exemptions no longer reflect how modern nanny employment actually works. The original purpose of the 30-hour rule was to avoid small super balances being eroded by fees. However, modern protections around low-balance super accounts have largely addressed those concerns. That is why industry bodies, superannuation groups, and many workers are now questioning whether the exemption remains appropriate in 2026. What Families Should Know Right Now ----------------------------------- For families employing a nanny today, the key thing is understanding that superannuation obligations can still apply depending on the hours worked and the nature of the arrangement. The rules can become complicated quickly, especially when: - Hours fluctuate week-to-week - Multiple families are involved - The nanny works close to the 30-hour threshold - Casual and permanent arrangements overlap Families should make sure they understand their obligations properly rather than relying on assumptions or outdated advice. We recently published our own guide explaining how superannuation for nannies currently works in Australia, including the domestic worker exemption and the upcoming Payday Super changes: [Superannuation for Nannies in Australia](https://paythenanny.com.au/articles/superannuation-for-nannies) Final Thoughts -------------- We appreciated ABC News shining a light on this issue because it highlights a broader shift happening across the nanny industry in Australia. Families increasingly want compliant, professional employment arrangements. Nannies increasingly want the same workplace protections and retirement security as other employees. Whether legislation changes or not, the direction of the industry is clear. The informal approach to nanny employment is slowly disappearing, and both families and nannies are better protected when employment is handled properly from the beginning. [ ![](https://assets.caresies.io/articles/146/conversions/sd25YD2NxSl4XCQvSA4o-webp-featured.webp) ](https://paythenanny.com.au/articles/simplifying-nanny-payroll-5-easy-steps-for-stress-free-payments)By Mark Hudson · 28 October, 2024 ### [Simplifying Nanny Payroll: 5 Easy Steps for Stress-Free Payments ](https://paythenanny.com.au/articles/simplifying-nanny-payroll-5-easy-steps-for-stress-free-payments) Managing nanny payroll can feel overwhelming, but it doesn't have to be. This guide breaks down five easy steps to ensure you pay your nanny correctly and stay compliant with Australian laws. From superannuation to overtime, we cover it all and with Pay The Nanny, payroll is stress-free and simple! [Read more...](https://paythenanny.com.au/articles/simplifying-nanny-payroll-5-easy-steps-for-stress-free-payments) [ ![](https://assets.caresies.io/articles/154/conversions/y42Ku3nPDfYGDmMQJBd0-webp-featured.webp) ](https://paythenanny.com.au/articles/can-i-pay-my-nanny-via-an-abn)By Mark Hudson · 15 May, 2025 ### [Can I Pay My Nanny via an ABN?](https://paythenanny.com.au/articles/can-i-pay-my-nanny-via-an-abn) Wondering if you can pay your nanny via an ABN? You’re not alone, but in most cases, the answer is no. Here’s what Aussie families need to know about whether a nanny is a contractor or employee, and how to avoid the risks of getting it wrong. [Read more...](https://paythenanny.com.au/articles/can-i-pay-my-nanny-via-an-abn) [ ![](https://assets.caresies.io/articles/197/conversions/SQJtf3jESfMOycbdGxJr-webp-featured.webp) ](https://paythenanny.com.au/articles/payday-super-for-nannies)By Mark Hudson · 20 February, 2026 ### [Payday Super for Nannies](https://paythenanny.com.au/articles/payday-super-for-nannies) From 1 July 2026, Payday Super will require employers to pay super at the same time as wages. For families employing a nanny, this could mean new cash flow pressures and compliance risks. The good news? If you use Pay The Nanny, everything is already handled for you. [Read more...](https://paythenanny.com.au/articles/payday-super-for-nannies) [ ![](https://assets.caresies.io/articles/164/conversions/B3kZ298jSOsvARMwWXxB-webp-featured.webp) ](https://paythenanny.com.au/articles/nanny-payroll-eofy-guide-australia)By Mark Hudson · 17 July, 2025 ### [End of Financial Year Payroll Essentials for Nanny Employers](https://paythenanny.com.au/articles/nanny-payroll-eofy-guide-australia) As the new financial year kicks off, now is the perfect time for Australian families with a nanny to ensure payroll, tax, superannuation, and workers compensation remain compliant. Here are the key end-of-year updates every employer of a nanny should know. [Read more...](https://paythenanny.com.au/articles/nanny-payroll-eofy-guide-australia) [ ![](https://assets.caresies.io/articles/201/conversions/YTi4iqWkrCfi7hqBviwi-webp-featured.webp) ](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away)By Mark Hudson · 09 April, 2026 ### [Do You Still Pay Your Nanny When You Go on Holiday? The Australian Guide](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away) Planning a family holiday during school holidays? If you employ a nanny, it is not as simple as “pausing” work while you are away. In Australia, employment laws still apply. Here is what you need to know to stay compliant and avoid costly mistakes. [Read more...](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away) ![Pay the nanny](https://paythenanny.com.au/images/logo-white.png)Join Our Community Stay in the loop! Subscribe to receive the latest updates, exclusive content, and special offers straight to your inbox. 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