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Nanny Pay Rates for 2026
========================

By Mark Hudson &amp;centerdot; 12 December, 2025

 Nanny pay rates across Australia have lifted again as we head in to 2026, with all states recording increases for both permanent and casual roles. This update breaks down the numbers, highlights key trends, and explains what shifting wage patterns mean for families and nannies.

 ![Nanny Pay Rates for 2026](https://assets.caresies.io/articles/148/conversions/sBOhv1v5CEY33KqGGBZO-webp-featured.webp)

The latest figures show strong upward movement across the country. Both casual and permanent nanny wages increased in every major state, following continued demand for in home childcare.

The average wage for a nanny in Australia is now **$38.10 per hour** for a permanent nanny and **$36.64 per hour** for a casual nanny.

1. Key Trends in 2026 Nanny Pay
-------------------------------

The headline trends for 2026 include:

- Permanent nanny rates increased nationally from 35.84 to 38.10, up 6.31 percent.
- Casual nanny rates increased from 34.15 to 36.64, up 7.29 percent.
- Casual wages continue to grow faster than permanent wages.
- NSW remains the highest paying state for permanent roles at 40.12.
- Queensland recorded the strongest increases for both permanent and casual positions.
- Wage growth is consistent with wider labour market pressure across care sectors.

2. State by State Comparison: 2025 vs 2026
------------------------------------------

**Permanent nanny wages (average)**

- NSW increased from 38.36 to 40.12, up 4.59 percent.
- QLD increased from 33.77 to 37.00, up 9.57 percent.
- VIC increased from 34.19 to 37.18, up 8.74 percent.
- WA increased from 34.86 to 35.41, up 1.56 percent.

Key takeaways:

- QLD and VIC led the country for the highest permanent wage growth.
- NSW saw moderate increases but remains the highest paying state for permanent arrangements.
- Other states haven’t been included due to a lack of comparable data to make meaningful analysis

**Casual nanny wages (average)**

- NSW increased from 36.15 to 37.26, up 3.07 percent.
- QLD increased from 35.15 to 38.03, up 8.20 percent.
- VIC increased from 33.85 to 36.24, up 7.05 percent.
- WA increased from 30.59 to 33.00, up 7.88 percent.

Key takeaways:

- Casual grew faster than permanent in nearly every state which is likely explained by a need for more flexible care
- QLD again delivered the highest year on year growth for casual nannies.
- WA’s casual wage increase significantly outpaced its permanent increase, suggesting higher demand for flexible arrangements.

3. Casual vs Permanent Rate Movements
-------------------------------------

National patterns show clear differences between the two employment types:

- Casual wages rose 7.29 percent nationally compared with 6.31 percent for permanent roles.
- NSW was the only state where permanent wage growth exceeded casual wage growth.
- QLD, VIC and WA all saw stronger percentage growth for casual work than for permanent employment.
- The gap between permanent and casual rates narrowed slightly as casual rates increased more quickly.

What this indicates:

- Flexibility continues to command a premium across most states.
- Casual arrangements are becoming more common as families mix structured hours with ad hoc care needs.
- Nannies with short notice availability may have stronger bargaining power in 2026.

4. Interpreting the 2026 Wage Increases
---------------------------------------

The overall wage increases highlight several national trends:

- Demand for in home childcare remains high as families seek stable and reliable support.
- Competition for experienced nannies seems to be intensifying, especially in QLD and VIC.
- Families should budget for ongoing year on year wage increases across most employment types.
- Nannies are experiencing steady real wage growth, particularly in states with tight labour markets.
- NSW maintains premium pricing, indicating sustained demand at the upper end of the market.

Broader implications:

- Households relying on nanny care should factor wage adjustments into annual budgeting.
- Nannies may find more opportunities to negotiate rates, especially for casual or flexible jobs.
- Differences between states are becoming more pronounced, which may influence relocation decisions for career nannies.

5. Additional Insights for 2026
-------------------------------

Several other patterns emerge from the dataset:

- Queensland has now recorded two years of above average wage increases, suggesting a continuing shift in childcare market dynamics.
- WA’s small permanent increase and moderate casual increase show a divergence based on employment structure rather than overall demand.
- The national averages indicate that nanny wages are now sitting firmly above pre 2024 levels, reflecting the long term normalisation of higher labour costs.
- Rate convergence between states is not occurring. High wage states remain high and lower wage states are increasing but not catching up proportionally.

6. The Miscellaneous Award and Minimum Nanny Pay Benchmarks
-----------------------------------------------------------

The 2026 increases continue to align closely with the [Fair Work Commission’s adjustments to the Miscellaneous Award](https://paythenanny.com.au/articles/guide-to-the-modern-award-system-for-nannies-in-australia), which sets the minimum lawful wage for nannies employed in Australia. Key points include:

- The Miscellaneous Award establishes the base rate that all employed nannies must be paid.
- Annual Fair Work wage reviews directly influence nanny rates across all states.
- The 2026 movements reflect the Award updates applied from July 2025, which flowed through into employer budgeting for the 2026 calendar year.
- These Award benchmarks act as a floor. Most families pay above the minimum due to market demand, experience levels, and additional responsibilities.
- The national averages for nanny pay are consistently higher than Award minimums, showing the sector operates at a premium relative to baseline wages.

This connection between Award increases and real market wages ensures nanny pay trends remain both predictable and compliant across the country.

7. Shift Away from ABN Arrangements
-----------------------------------

A noticeable trend influencing the nanny labour market is the continued decline in families using nannies [paid via an ABN](https://paythenanny.com.au/articles/can-i-pay-my-nanny-via-an-abn). Instead, more households are opting for correct employment arrangements, either casual or permanent.

Contributing factors include:

- Increased public awareness that most nannies do not meet the legal definition of an independent contractor.
- The ATO’s stance that nanny work is usually employment rather than contract work.
- Families wanting to avoid compliance risks such as PAYG back payments, superannuation liabilities and potential penalties.
- More nannies insisting on correct employment status to ensure super, workers compensation coverage and paid leave entitlements where eligible.
- Payroll providers like Pay The Nanny making the employment setup process simpler and more cost effective.

As a result, the nanny sector is shifting toward fully compliant employment relationships, which also helps stabilise wage expectations and supports professionalisation of the industry.

Frequently Asked Questions: 2026 Nanny Pay Rates in Australia
-------------------------------------------------------------

**What is the average nanny hourly rate in Australia in 2026**

The national average is 38.10 per hour for permanent nannies and 36.64 per hour for casual nannies. These figures reflect increases of 6.31 percent and 7.29 percent compared with 2025.

**How much should I pay a nanny in NSW, VIC, QLD or WA**

Rates vary by state. NSW remains the highest paying for permanent roles at 40.12 per hour. QLD and VIC recorded the strongest wage growth for 2026, particularly for casual nannies. WA sits lower overall but saw solid casual increases. Most families pay at or above the market averages depending on experience and responsibilities.

**Are nannies covered by the Miscellaneous Award**

Yes. The Miscellaneous Award sets the minimum lawful rate for employed nannies in Australia. Families must use the Award as the baseline for hourly pay, with most paying above minimum rates due to market conditions and experience.

**Do casual nannies earn more than permanent nannies**

Not in terms of raw hourly rate. Permanent rates remain higher nationally. However, casual wages grew faster in 2026 and often reflect a premium for flexibility, short notice shifts and variable weekly schedules.

**Can I pay my nanny using an ABN**

In most cases no. The ATO considers nanny work to be employment rather than contract work. A nanny who works set hours, uses your equipment and provides ongoing care does not meet contractor criteria. Paying via ABN can lead to back payments, superannuation liabilities and penalties.

**Why are nanny wages increasing**

Key reasons include rising demand for in home childcare, tight labour markets in QLD and VIC, annual Fair Work wage review adjustments, and the professionalisation of the nanny sector. National wages increased between 6 and 7 percent this year.

**What determines whether a nanny should be casual or permanent**

The distinction comes down to the nature of the work pattern. Consistent scheduled hours point toward permanent employment, while irregular or ad hoc shifts fall under casual employment. Pay rates and entitlements differ, so choosing the correct category is important for compliance.

**Do nanny rates differ depending on duties**

Yes. Nannies performing additional responsibilities such as household management, driving, tutoring or caring for multiple children may attract higher pay. Families typically negotiate above the minimum rate when duties go beyond standard care.

**How can families stay compliant with nanny wage requirements**

By ensuring wages meet or exceed the [Miscellaneous Award](https://awards.fairwork.gov.au/MA000104.html), paying superannuation where required, recording hours properly and using payroll systems designed for domestic workers. Providers like [Pay The Nanny](https://paythenanny.com.au/contact) help families meet all legal obligations without complexity.

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