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.
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.
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.
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.
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.
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.
The 2026 increases continue to align closely with the Fair
Work Commission’s adjustments to the Miscellaneous Award, 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.
A noticeable trend influencing the nanny labour market is
the continued decline in families using nannies paid
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.
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,
paying superannuation where required, recording hours properly and using
payroll systems designed for domestic workers. Providers like Pay The Nanny help families meet
all legal obligations without complexity.