Finding a new nanny job can be a stressful—not to mention time-consuming—experience, from writing cover letters and CVs to sitting through round after round of interviews to make sure you’re a good fit. Now you’ve found the perfect position, you’re no doubt raring to get started. That said, it’s crucial to spend a few moments dealing with the paperwork before you begin so things run smoothly—for you and your future employer. We’ll walk you through it, step by step.
What to expect when you’re hired
Once you’ve been given a job offer to work as a nanny, there’s one very important document to sort out—specifically, your employment contract. This should detail things like your job title, your employer’s name and whether you have a probationary period (and if so, how long this runs for). It also sets out your salary, how this is paid, your holiday entitlement, your sickness benefits and if you receive any fringe benefits, like a gym membership or car. Your employment contract is handy to refer to if you have questions down the line—so make sure to keep it safe!
In Australia, nannies (and every other kind of employee) have to pay income tax contributions on their earnings. You barely need to lift a finger for this, though: Your employer will withhold the relevant amount of tax from your salary payments and send this straight to the tax office for you. So they can do this, you need to give your employer your tax file number (TFN). If you don’t have one already, you’ll need to apply for one online.
Once you’ve got your TFN, you need to complete a TFN declaration. This will help your new employer work out how much income tax to deduct from your payslip. The first AUD 18,200 you earn is tax-free (known as your “tax-free threshold”), so you’ll only pay tax on amounts above this.
Finally, you might also need to choose your super fund. If you meet certain conditions, your employer is obliged to pay into a superannuation (or “super”) fund for your retirement pension provision—and you get to choose which fund this is. If you do not choose a super fund, your employer will nominate their default fund on your behalf. Make sure your TFN is linked to your chosen super fund, so you don’t end up paying any additional tax.
What to expect during the year
Over the course of the year, your employer should pay you your salary at the intervals agreed in your contract. They’ll withhold the relevant amount of income tax from this, so you don’t need to pay this yourself. No matter whether your employer pays you in cash or by bank transfer, they should provide you with a payslip detailing your wages and how much tax and super have been deducted from them. Keep these payslips safe—you might need them for your tax return at the end of the year.
What to expect at the end of the year
When the Australian tax year comes to an end on 30 June, your employer should provide you with an end-of-year income statement. This details the total amount they’ve paid you over the year, and any deductions made. If you’ve earned more than the tax-free threshold of AUD 18,200, you’ll also need to file a tax return each year—the deadline for this is 31 October. This is your chance to offset any expenses you incurred in the course of your work and report any other income you might have generated. If you haven’t made more than the tax-free amount, you’ll still need to file a non-lodgment advice so the tax office is kept in the loop.
Now you can hit the ground running!
As you can see, there’s a little bit of admin to get out of the way before you start a new nanny job. This is primarily for your own protection, so that you and your employer are both on the same page when it comes to your rights and obligations. Once you’re all set up with your employment contract and you’ve been added to your employer’s payroll, everything should run smoothly. Just don’t forget to submit your tax return each year!