Nanny Superannuation – What Families Need to Know
Superannuation Guarantee
The Superannuation Guarantee increased to 12% on 1 July 2025. At this stage, there are no further legislated increases.
Superannuation is paid on top of your employee’s gross hourly rate. While you can pay your nanny an inclusive of super hourly rate, this effectively reduces the gross hourly rate. If you choose this option, you must ensure the gross rate still meets the minimum pay requirements under the Miscellaneous Award 2020.
For example,
If you pay your nanny $35.00 per hour plus 12% super, the gross hourly rate is $35.00, and the total hourly employment cost is $39.20.
Alternatively, if you pay $35.00 per hour inclusive of super, the gross hourly rate reduces to $31.25 per hour, with super accruing on that amount. Your total hourly employment cost remains $35.00.
If you decide to pay an inclusive of super hourly rate, this must be clearly stated in your employment contract. Otherwise, the agreed hourly rate is generally considered to be exclusive of superannuation.
When are nannies exempt from super?
Domestic staff, including nannies and au pairs working in a private home, are generally exempt from compulsory superannuation if they work 30 hours or less per week.
Once your employee works more than 30 hours in a week, compulsory superannuation obligations apply.
If your employee works less than 30 hours normally but one week works say 35 hours, super is payable on that whole 35 hours but for that week only. You can return to claiming the exemption when they return to working less than the exemption threshold.
Please note that if you engage your nanny as a contractor rather than an employee, you may still have superannuation obligations. Where the contractor works more than 30 hours per week and is paid mainly for their labour, superannuation is generally still payable.
Although super is not compulsory for employees working 30 hours or less per week, many families choose to pay it voluntarily as an additional benefit to help attract and retain staff.
Payday Super – when does super need to be paid?
Since 1 July 2026, employers are required to pay superannuation much more frequently under the new Payday Super rules.
Super contributions must be paid so they are received by your employee’s super fund within seven calendar days of payday. And must be paid electronically through a compliant super clearing house.
This requirement applies to all employers who have an obligation to pay superannuation, regardless of the size of the business or if you’re a household employer employing using a WPN. And it still applies to household employers who pay super even though their nanny works less than 30 hours a week and they choose to still pay the super.
What to do when super is paid late?
As the ATO has moved into online compliance through Single Touch Payroll. It is important than ever that all super contributions are paid in full and on time.
For super accrued and not paid prior to 30 April 2026
You must lodge a Superannuation Guarantee Charge (SGC) Statement with the ATO and pay any applicable Superannuation Guarantee Charge, which includes interest and an administration fee.
You may be required to lodge an SGC Statement if you:
- don’t pay enough super for your nanny (a super guarantee shortfall)
- don’t pay super on time
- don’t pay super into your employee’s nominated super fund (known as a choice liability).
If you discover that a super payment has been missed or paid late, it is generally best to lodge the required statement with the ATO as soon as possible. Voluntarily correcting the issue early can help reduce the risk of further penalties if the ATO later reviews your records.
For super accrued and not paid post 1 July 2026
For the first 12 months of Payday Super’s implementation, there is some flexibility from the ATO regarding late payments as this is a major change. As long as you can show you are trying to meet the new super payment requirements.
For paydays from 1 July 2026, you no longer need to lodge a SGC statement if you don’t pay the minimum super guarantee amounts for your employees in full and on time. The ATO will calculate your super guarantee charge and send you a notice of assessment. Which is – let’s face a terrifying thought.
At Domestic Payroll, we have Payday Super set up for all our clients for both Gold and Gold Extra we are managing the transfer of the super into your employees account to make the 7 day deadline. If you would like our help on this issue or any other payroll issue, please get in touch.
