There are many ways that a caregiver can work for a family. To find out the best solution for your personal situation, you must seek professional advice, and finding an accountant is a great place to start.
To help you on your journey, we’ve provided a broad overview of the things you can consider and some resources you may find helpful.
How do families engage caregivers?
Broadly speaking, a family can engage a nanny directly or use an Agency.
The direct approach involves the parents managing the search and recruitment process themselves.
Parents can also use the services of an Agency to either help find a nanny, take care of the recruitment process, or both.
Am I an employee or a contractor?
When a family is engaging a caregiver directly, it is important to understand if the caregiver is an employee of the family or a contractor. This important distinction determines the obligations of the working arrangement, like who is responsible for tax and super. The ATO has an easy Decision Tool that you can complete to understand your situation:
https://www.ato.gov.au/business/employee-or-contractor/how-to-work-it-out–employee-or-contractor/
The ATO also has a helpful article about what to do if you’re unsure about working arrangements:
https://www.ato.gov.au/Business/Employee-or-contractor/Difference-between-employees-and-contractors/
Nannies are typically considered employees, but every situation is different, and that’s why it’s so important that caregivers and families seek professional advice.
https://www.fairwork.gov.au/library/k600086_nannies-au-pairs-employment-status-award-coverag
Helpful resources
We have created this list of resources to help caregivers prepare for the important conversations with professionals and families.
Visit the Fair Work Ombudsman for help with:
The difference between contractors and employees:
https://www.fairwork.gov.au/find-help-for/independent-contractors
Employment status and award coverage for nannies and au pairs:
https://www.fairwork.gov.au/library/k600086_nannies-au-pairs-employment-status-award-coverage
Minimum workplace entitlements
https://www.fairwork.gov.au/tools-and-resources/fact-sheets/minimum-workplace-entitlements
Templates and resources to manage workplace obligations:
https://www.fairwork.gov.au/tools-and-resources/templates
Visit the Australian Tax Office (ATO) for help with:
Your superannuation and tax obligations:
https://www.ato.gov.au/business/employee-or-contractor/your-tax-and-super-obligations/
Common myths about being a contractor:
https://www.ato.gov.au/Individuals/Jobs-and-employment-types/Employee-or-contractor—what-s-the-difference/Common-myths-about-being-a-contractor/
Registering for GST:
https://www.ato.gov.au/Business/GST/Registering-for-GST/
Visit Business.Gov.Au for help with:
Starting and running a business as a contractor, which includes:
- choosing a business structure
- registering for your Australian business number (ABN), goods and services tax (GST) and business name
- setting up record keeping and accounting systems
- ensuring you understand your tax and legal obligations
- arranging insurance
https://www.business.gov.au/guide/starting
Are you a Visa Holder or Migrant Worker?
If you are visiting Australia and want to work as a nanny, you must know the rules of your visa as there may be limits on the type of work you can do. If you are allowed to work in Australia, know that international students, migrant workers and visa holders are entitled to the same rights in the workplace as all workers in Australia. This means that Australian employers must adhere to the same minimum pay rates and work conditions as they would for any other Australian employee. Employers are also not allowed to cancel your visa, and they are not allowed to ask for, receive, offer or provide a benefit in return for visa sponsorship or employment that requires visa sponsorship. If you have any workplace issues, the Fair Work Ombudsman is available to help you. You cannot get into trouble if you contact them to understand a working engagement with a family. They provide free advice and assistance to help you understand your rights.
For more information, visit https://www.fairwork.gov.au/find-help-for/visa-holders-migrants
