Ask for a CV and look at the person's work experience over the last 5 years. Enquire about any unexplained gaps.
Ask for their driver's licence if they have one and check all details including the photo.
Ask for references and speak to the referees directly. Ask in-depth questions like " Why did they leave your employment " and " Would you employ them again "
Get a Police Check. A lot of the nannies will already have one ( www.weneedananny.com will show you which nannies have police checks ). Otherwise go to www.mypolicecheck.com.au.
In some states you can request a Working with Children Check, which includes a police check.
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