End of Financial Year Payroll Essentials for Nanny Employers

With the end of the financial year wrapped up, it’s time for Australian families employing a nanny to check that payroll, superannuation, and insurance obligations are all up to date. Compliance requirements for household employers can easily be overlooked, so here are the key areas to review as we move into the 2025–26 financial year.

End-of-Year Tax Reporting for Your Nanny

If you pay your nanny through a registered payroll provider like Pay The Nanny, there is nothing further you need to do when it comes to end-of-year tax reporting. Your nanny’s total earnings for the 2024–25 financial year will have been lodged with the Australian Taxation Office (ATO) through Single Touch Payroll (STP).

This reporting ensures your nanny’s income statement is available via their myGov account. Your nanny will need this statement when preparing their personal tax return.

If you or your nanny need a copy of the income statement or a summary of wages and superannuation contributions, your payroll provider can assist. At Pay The Nanny, we offer tailored reports on request to help families stay organised at tax time.

For more on STP reporting, see the ATO’s guide here: ATO - Single Touch Payroll

Superannuation Guarantee Increase to 12%

As of 1 July 2025, the Superannuation Guarantee (SG) rate officially increased to 12%, as part of the legislated gradual increases by the government.

If you pay superannuation on top of your nanny’s hourly rate, this new rate will now apply. No further rate increases are currently scheduled, so 12% is set to remain the standard.

If you’re unsure whether your nanny's pay arrangements include superannuation, or how this increase might impact your household budget, it’s a good idea to review your payroll setup. Pay The Nanny clients can contact us anytime to confirm their current arrangements or make adjustments.

More on SG for Domestic Employees can be found here: ATO - Super Guarantee Rate

Minimum Pay Rate Changes Under the Miscellaneous Award

If your nanny is employed under the Miscellaneous Award 2020, be aware that the minimum pay rates increased from 1 July 2025 following the Fair Work Commission’s annual wage review.

These changes ensure that wages keep pace with living costs, but the onus remains on you as the employer to ensure your nanny is paid at or above the minimum threshold.

Not all nannies are necessarily covered by the Miscellaneous Award, but it’s commonly applied where a nanny performs set hours and regular duties. If you’re unsure whether this award applies to your nanny, or if you need guidance on the correct rates, we’re happy to assist.

You can access the updated pay rates on the Fair Work Ombudsman website: Fair Work - Miscellaneous Award Pay Guide

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