Domestic Payroll Changes for Financial Year 2027
From 1 July 2026, a number of changes to tax, superannuation and pay rates may affect the payments made to your nanny or other domestic staff.
Superannuation
The superannuation guarantee rate remains at 12% for this financial year.
The exemption for domestic staff working 30 hours or less per week remains in place.
A significant upcoming change for employers is Payday Super, which will require superannuation contributions to be paid to an employee’s super fund within seven days of each payday. This measure is scheduled to commence from 1 July 2026. There are currently no exemptions proposed for small employers.
Minimum Wage and Award Increases
From July 1, 2026, the minimum Miscellaneous Award rates have increased by 4.75%.
In all states and territories except Western Australia, most nannies, au pairs and domestic staff are covered by the Miscellaneous Award at Level 2.
The minimum rate from July 1 for an employee aged 21 years and over who work ordinary daytime hours from Monday to Friday, increases to as follows:
- Permanent employees: $27.08 per hour
- Casual employees: $33.84 per hour
In Western Australia, most nannies, au pairs and other domestic staff are award-free.
The rates for employees aged 21 years and over, increases to as follows:
- Permanent employee: $26.27 per hour
- Casual employee: $32.84 per hour
PAYG Tax and Student Loan Repayments (STSL)
From 1 July 2026, the lowest marginal tax rate for taxable incomes between $18,201 and $45,000 will decrease from 16% to 15%.
As a result, most employees will see a small increase in their take-home pay.
From 1 July 2027, this tax rate will reduce further from 15% to 14%.
Motor Vehicle Reimbursement Rate
The ATO’s cents-per-kilometre rate for motor vehicle expenses remains at 91 cents per kilometre.
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