Superannuation for Nannies in Australia: What Families Need to Know in 2026

Superannuation is one of those things families don't think about until they're already in trouble with it. If you employ a nanny in Australia, getting super right from the start saves you from back payments, ATO penalties, and a lot of unnecessary stress down the track.

The rules for nannies aren't quite the same as a standard employer-employee setup. There's a specific exemption for domestic workers that changes the picture considerably, and with Payday Super arriving in July 2026, now is a good time to make sure you're across everything.

This guide updates our 2025 superannuation overview and 2023 edition with the latest information for the current financial year.

Do You Actually Have to Pay Super for Your Nanny?

Not always. Whether super applies depends on a few factors specific to your arrangement.

Under current ATO rules, you're required to pay superannuation for your nanny if:

• They're 18 or older and earn $450 or more per calendar month (note: this threshold is being removed under the Payday Super reforms), or
• They work more than 30 hours per week, regardless of age.

However, there's an important carve-out that applies to many nanny arrangements specifically.

You do not have to pay super if your nanny is classified as a domestic or private worker and works fewer than 30 hours per week. You can of course (and many families do) still pay your nanny superannuation even if it isn’t mandatory.

This is one of the most misunderstood aspects of nanny employment in Australia. Plenty of families are paying super when they don't need to, and some aren't paying it when they should be. The 30-hour threshold is where most of the confusion sits.

You can verify your obligations directly with the ATO here: ATO: Work out if you have to pay super for domestic or private workers

What Makes Someone a Domestic or Private Worker?

The ATO classifies a worker as domestic or private when they work in or around a private home. For nannies, this typically covers:

• Childcare and looking after kids during the day or overnight
• Light household duties carried out alongside their main role
• General support with family routines and logistics

This classification matters because it's what unlocks the under-30-hours exemption. A nanny working 25 hours a week in your home falls into this category. The same person working 35 hours a week does not get the exemption, and super applies.

Track your nanny's weekly hours carefully. It's easy for a "regular 28 hours" to quietly become 32 during busy periods, which changes your obligations.

How Much Super Do You Need to Pay?

When super does apply, it's calculated as a percentage of your nanny's ordinary time earnings. That means their base pay for regular hours worked. Overtime is generally excluded from the calculation.

The Super Guarantee rate from 1 July 2026, increased to 12%, where it will remain for the foreseeable future/

Quick example:

Your nanny works 35 hours a week at $35 per hour.

• Weekly wages: $1,225
• Super at 12%: $147 per week

Under the old quarterly system, that super would be paid four times a year. Under Payday Super, it gets paid with every pay run.

If you’re interested around what the current pay rates are for nannies in Australia, we update our guide each year here.

Payday Super: The Big Change Coming in July 2026

From 1 July 2026, the way employers pay super is changing significantly. The Federal Government is introducing Payday Super, which requires super contributions to be paid at the same time as wages rather than quarterly.

This is the most substantial overhaul to superannuation payment rules in years.

What Changes Under Payday Super

At the moment, employers can pay super quarterly as long as it lands before the quarterly due date. From July 2026, that window closes. Every time you pay wages, super goes with it.

For families managing payroll themselves, this creates some real practical pressures:

• Cashflow planning. Super can no longer be set aside and paid in a lump sum. It needs to be budgeted as part of every pay cycle.
• More frequent admin. Weekly or fortnightly super payments instead of four per year.
• Less margin for error. Missing a payment is more visible and happens faster under the new system.

The ATO has indicated it will improve monitoring of super payments through Single Touch Payroll data, so compliance will be much easier to audit from both sides.

We've put together a dedicated guide on how Payday Super affects nanny employers if you want the full detail.

Common Mistakes Families Make with Nanny Super

A few patterns come up repeatedly when families get this wrong.

Assuming the domestic worker exemption always applies. The exemption is real and valid, but it has a hard cut-off at 30 hours per week. If your nanny's hours creep up, you need to reassess. If they work more than 30 hours in just one week, you'll need to pay super for that week.

Paying cash and assuming nothing applies. Informal arrangements still fall under Australian employment law. Cash payments don't change your obligations as an employer, and the ATO treats underpayment of super seriously.