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Do I Need Workers Compensation Insurance for My Nanny in Australia?
Do I Need Workers Compensation Insurance for My Nanny in Australia?
When you employ a nanny in Australia, you become an employer under the law. That means you may need nanny workers compensation insurance Australia wide, depending on your state or territory.
Workers compensation covers your nanny if they are injured at work. This includes medical expenses, lost wages and rehabilitation costs. Without the right domestic worker insurance, you could be personally liable.
Below is a state by state overview to help you understand your obligations.
New South Wales
In NSW, workers compensation is regulated by icare.
If you employ a nanny and pay more than the minimum threshold in wages per year, you must take out a workers compensation policy. Domestic workers are included under the definition of worker if they are engaged under a contract of service.
Even if your nanny works part time, you may still need cover depending on annual wages. Failing to hold a policy can result in significant penalties and backdated premiums.
More information is available via SafeWork NSW.
Victoria
In Victoria, workers compensation is managed by WorkSafe Victoria.
If you employ a nanny and your total wages exceed the annual threshold set by the regulator, you must register for WorkCover insurance.
Domestic workers are specifically included. If your nanny is injured while lifting a child, driving to school drop off, or performing household duties within their role, you could be responsible for compensation costs without insurance.
Queensland
In Queensland, workers compensation is provided through WorkCover Queensland.
If you employ a nanny under a contract of service, you are generally required to hold a policy, regardless of hours worked. Queensland has historically applied broad definitions of worker, which can capture domestic employees.
For Queensland, you can apply for a Household Workers Insurance which is $60 for a two year period and covers all domestic workers within your household.
Western Australia
In WA, workers compensation insurance is mandatory for employers under the WorkCover WA framework.
Domestic workers, including nannies, are typically covered if they are employees rather than contractors. You must obtain a policy through an approved insurer.
South Australia
South Australian employers must obtain coverage through ReturnToWorkSA.
If you pay wages above the minimum annual threshold of $16,312, registration is required. Domestic worker insurance applies to nannies working in private homes.
Australian Capital Territory
In the ACT, workers compensation is regulated by WorkSafe ACT.
Most families employing a nanny under an employment agreement will require a policy if they exceed the wage threshold.
To take out a workers compensation in policy in ACT, you’d need to use an approved insurer like Allianz.
Tasmania and Northern Territory
Both Tasmania and the Northern Territory require employers to hold workers compensation insurance for employees, including domestic workers, if wage thresholds are met.
What Are the Risks of Not Having Cover?
If your nanny suffers an injury at work and you do not have workers compensation insurance:
- You may need to personally fund medical costs
- You could be liable for lost wages
- You may face fines and penalties
- You could be exposed to legal action
Even a minor injury can become expensive. A back strain from lifting a toddler or a fall while walking to school can quickly result in claims.
We calculate, file and pay. You don't.
Pay The Nanny runs your payroll, files with the ATO and pays your nanny on time, so you never have to.
Enquire NowDoes My Nanny Count as a Worker?
In most cases, yes.
If your nanny:
- Works regular hours
- Is paid hourly or weekly wages
- Uses your equipment
- Works under your direction
They are almost certainly an employee, not a contractor. That means domestic worker insurance obligations usually apply.
Even if they are a contractor, and you are paying them via an ABN, you might still need workers compensation in some states.
How Pay The Nanny Helps
Navigating nanny payroll is already complex. Adding state based insurance requirements can feel overwhelming.
When you use Pay The Nanny:
- We ensure your nanny is set up correctly as an employee
- We process PAYG and superannuation correctly
- We guide you on your workers compensation obligations in your state
- We make compliance simple and secure
From 1 July 2026, Payday Super changes will increase compliance pressure on employers. Families using manual systems may feel the impact on cash flow and administration. Our clients will not need to change anything. We already handle super payments seamlessly.
Final Thoughts
If you are employing a nanny, workers compensation rules will apply to you. Workers Compensation for your domestic worker is not just a formality. It protects your nanny and your family.
Before your nanny starts, confirm your obligations in your state and ensure you have the right cover in place.
If you would like support managing payroll, super and compliance for your nanny, Pay The Nanny can help you stay protected and confident.
Guide to Workers Compensation for Household Employers in Australia
End of Financial Year Payroll Essentials for Nanny Employers
How Much Does a Nanny Cost in Australia? (2026 Guide)
Steps to Meet the Legal Requirements for Employing a Nanny
The Hidden Benefits of Being Paid Properly as a Nanny in Australia
