Paying your nanny cash in hand is not the smart choice. You may have seen our Director, Lauren Brown, on 9News and 9Now this weekend. She joined the conversation around a recent Fair Work Commission ruling that reinforces the legal rights of household employees, even when there is no written agreement in place.

The 9News segment explored what this means for families and nannies across Australia.

What’s the big issue?

Paying a babysitter or nanny cash in hand may seem simple, but Australian law treats regular childcare providers in the home as employees, not independent contractors. This means families are legally required to meet payroll, tax, superannuation, leave entitlements, and record keeping obligations.

While a one off babysitting stint here and there might not typically attract enforcement, paying your nanny cash – even for working just one day per week – can trigger employee status under the Fair Work Act. (dbalawyers.com.au)

What laws apply?

National Employment Standards (NES): These are the minimum rights all employees must receive, regardless of any contract. (fairwork.gov.au)
Miscellaneous Award, or possibly the Children’s Services Award, depending on circumstances, set out specific pay rates and conditions for nannies and domestic childcare workers. (fairwork.gov.au)
Expect entitlements like paid leave, public holidays, superannuation (if they work over 30 hours per week), and even workers’ compensation if applicable.

Paying your nanny cash used to be the norm? What’s changed?

A recent Fair Work ruling confirmed that even without a written contract, consistent childcare services such as a nanny on a roster can establish full employee status. This means the family becomes responsible for all associated obligations. Paying your nanny cash in hand can no longer be considered a simple workaround.

How NannyPay helps you stay compliant in paying your nanny:

1. Automated payroll: We handle pay slips, tax withholding, super contributions, and ensure payments align with award rates.

2. Employment contracts: Our contracts are professionally drafted, comprehensive, and fully compliant, just as Lauren Brown outlines in our guide “The Essential Guide to Nanny Employment Contracts in Australia”.

3. Peace of mind: You are protected from penalties, ATO investigations, or unexpected claims, and your nanny is treated fairly and professionally.

4. Clarity: You will always know who qualifies as a contractor versus an employee, using tools like the ATO decision tool and Fair Work guidelines.

NannyPay CEO, Lauren Brown (wearing our Club Nanny Cap!)

Summary Table

Scenario	Legal Status	Family’s Responsibilities
Casual babysitter, a few times/year	Likely not employee	Minimal employer obligations.
Regular nanny (e.g. once/week)	Likely employee	Must pay award rates, super, tax, leave entitlements, etc.

Bottom line: Paying your nanny cash with informal payments may look harmless, but if your nanny or babysitter works regularly, Australian law treats them as employees. Compliance is not optional. Let NannyPay help you do this the right way so you and your childcare professional both stay protected and stress free – just as highlighted in the recent 9News feature.

Curious to learn about easy alternatives to paying your nanny cash? We’re happy to have a no-obligation chat with parents and nannies anytime,

Book a free call today!

Did you watch NannyPay on 9News? We’d love to hear your thoughts! Connect with us on social media via Instagram or Facebook to join the ongoing discussion about nannies and nanny pay in Australia.