Superannuation guarantee is set to increase from 10.5% to 11%. This will take effect from 1 July 2023. The super rate is legislated to increase to 12% by 2025.
If the rate you pay your nanny is inclusive of superannuation, this will decrease the rate of your nanny’s gross pay.
If the rate you pay your nanny is exclusive of super, you will see this increase at the end of the first quarter when the super is due.
Super due dates
Super is due each quarter over the following periods into your nannies nominated fund:
- January to March due April 28th
- April to June due July 28th
- July to September due October 28th
- October to December due January 28th
Nannies exempt from super payments
Nannies & Au Pairs in the home are exempt from superannuation if they work less than 30 hours or less a week, the moment they work more than 30 hours or more compulsory superannuation obligations kick in.
Please note if you are paying your nanny as a contractor instead of an employee, you are still obligated to pay superannuation once your nanny works over the 30 hour mark.
It’s also important to note that, if your nanny works less than 30 hours a week, you can still pay superannuation if you choose too, as an incentive for your nanny to stay working with your family.
What to do when super is not paid
It’s very important that all super is lodged in full and on time. If you haven’t met your super obligations as an employer, you should lodge a Superannuation guarantee charge statement – quarterly with the ATO which includes an administrative super charge.
You’ll have to pay the super guarantee charge if you:
- don’t pay enough super contributions for your nanny– this is called a super guarantee shortfall
- don’t pay super contributions by the quarterly cut-off date for payment.
- don’t pay super to your nannies chosen super fund – this is called a choice liability.
It’s best to lodge the late payment advice to the ATO voluntarily when it initially happens as if you are audited by the ATO th fines and penalties can be steep for not meeting your superannuation obligations.
Help with superannuation for nannies
Making sure you have met your superannuation requirements is one of the more annoying and time consuming part of employing a nanny. Domestic Payroll can help.
We are here to help, assisting with the required superannuation obligations and changes. Get in touch with us now and find out how paying the nanny can become an easy process including managing nanny superannuation.
