If you’ve narrowed down your choice of childcare options and decided that hiring a nanny is the right option for your family, you’re probably wondering: Can we even afford a nanny? As with any childcare option a parent considers, it’s crucial to know up front what it’s going to cost so you can look at your finances and budget for it.
How much is a nanny?
Generally, nannies in Australia are paid a rate that sits somewhere between $25–$35 per hour. You can find most current average rates for nannies, depending on the location and number of children, with our childcare rates calculator. But there are several other factors to keep in mind when discussing a nanny’s pay rate.
What should I factor into a nanny’s pay rate?
The cost of hiring a nanny has many variables, including where you live, what the nanny is hired to do and how much experience they bring to the position.
Geographic area
One of the biggest factors in how much you’ll pay for a nanny is where you live. Hourly rates for nannies vary widely from one community to the next. Those living in areas with a higher cost of living generally pay more for nanny services than in lower-priced areas. Competition can also be a factor. Cities with fewer experienced, well-qualified nannies will pay them more than in places where competition isn’t quite so fierce.
Here are some examples of the going nanny rates based on location, according to recent Care.com data.
Current nanny rates for top cities*
| CITY | HOURLY NANNY RATE |
| Sydney | AUD 28,9 |
| Melbourne | AUD 27,6 |
| Brisbane | AUD 26,4 |
| Perth | AUD 25,0 |
| Adelaide | AUD 24,8 |
| Gold Coast | AUD 26,5 |
| Newcastle | AUD 25,7 |
| Canberra | AUD 25,9 |
| Sunshine Coast | AUD 26,8 |
| Central Coast | AUD 25,0 |
Beyond cost of living, commuting can also play a role. The nanny will be taking into consideration the cost of their time in transit and any travel costs, such as petrol or wear and tear on their car, especially if the hours are part-time.
Looking up average nanny rates for your area is good starting place—you can always go up or down based on expected duties or the nanny’s experience.
Types of duties and tasks
In addition to where you live, what you’re asking the nanny to do could also affect how much you’ll pay. Caring for more children, for example, usually means more work for the nanny, and therefore a higher pay rate.
The specific tasks included in the job description of a nanny can change from one family to the next. While one family may just want the nanny for very basic care purposes, some families may want their nanny to go the extra mile and organise birthday parties, do the grocery shopping, plan the kids’ school schedules, or maybe even do the school drop-off and pick-up. So it’s important to take the nanny’s scope of duties into account.
Circumstances that might make the price of nanny services go up or down include:
- Number of children.
- Ages of the children.
- Driving to and from activities—typically covered in the form of using a household vehicle or paying the nanny a travel reimbursement if they have to use their own car.
- Household tasks, such as cooking, laundry, cleaning or dog-walking.
- Errands like grocery shopping or picking up the dry cleaning.
- Managing contractors or other household employees.
- Event planning.
How much more a nanny should earn for these non-childcare tasks is something the family and the nanny should decide together. It should be discussed during routine pay assessments and written down in a nanny contract or workers agreement.
Experience and background of the nanny
If families are looking for someone with a lot of training or background in a specific area, they should be prepared to pay more for that experience.
Nannies with tertiary education, especially in early childhood education, typically have a higher earning potential. Nannies with specialised training or experience with niche circumstances, such as caring for multiple children or children with special needs, also earn more.
Minimum wage
Families often expect experienced, high-quality care at the minimum possible price. But make sure the fee you’re paying your nanny reflects your needs—and the legal requirements. The minimum wage—sometimes referred to as the “National Minimum Wage”—as of 1 July 2021 is $20.33 per hour in Australia. This is reviewed yearly by the Fair Work Commission.
What extra costs are not included in a nanny’s pay rate?
How much you pay your nanny is only part of the equation. When you’re budgeting for nanny services, you should also take into consideration other costs, like taxes and superannuation, background checks and alternate care arrangements for when your nanny is sick or on annual leave. These additional expenses include:
- Taxes: If you’re hiring your nanny on a full-time or part-time basis rather than as an independent contractor (sole traders are responsible for their own taxes), you will be responsible for withholding the nanny’s taxes and making superannuation contributions.
- Payroll services: Some families opt to use a payroll service or accountant to manage the nanny’s pay and taxes, which can also be an added cost.
- Intermediary agencies: If you hire a nanny through a referral agency or nanny service, these organisations will generally charge fees to vet and recommend nannies for you.
- Periodic police checks: Police checks for nannies prior to hiring them on, as well as on an annual or routine basis, are also an added cost. While it’s fair to assume that the nanny can cover the cost of a single police check and claim it on their tax return, if you’re going to be expecting regular police checks from them, you should probably budget for this yourself.
- Additional certifications: Families insisting that their nannies be up to date on CPR and first-aid certifications will often pay for them to be renewed every few years.
- Raises, bonuses and overtime: Like many different types of employees, nannies expect to receive routine raises and/or bonuses and are entitled to overtime pay if they work more than 38 hours per week, according to the Fair Work Ombudsman. How much you should give in raises or bonuses is between you and your nanny—just make sure you keep up to date with any minimum wage increases in any case.
- Alternate childcare: Families that hire their nanny as a full-time or part-time employee rather than an independent contractor are required give them paid sick leave and annual leave. During that time, families might need to pay for alternate, short-term childcare, such as an emergency babysitter or a day-care centre, if family members are unable to fill in.
How much a nanny costs can differ widely from one family to the next, based on circumstances, expectations and experience levels. Families interested in hiring a nanny should start by looking into the costs of nannies in their area and adjust their budget from there.
