Nanny Cost Calculator

Understanding nanny costs in Australia

What a nanny costs in Australia in 2026

Nanny rates in Australia are quoted hourly and vary by experience, location and the number of children. An entry level nanny with limited experience runs $28 to $33 an hour, an experienced nanny $32 to $40, an early childhood qualified nanny holding a Certificate III or Diploma $38 to $48, and a specialist covering newborns, twins or additional needs $45 to $60. Sydney and Melbourne sit at the top of every band and regional rates run several dollars below. Translated into annual figures, a nanny at thirty hours a week across a forty eight week year costs roughly $46,000 to $58,000 in wages alone, and full time at thirty eight hours runs $58,000 to $78,000 before employment on costs.

Direct employment and what it actually involves

This is the part most Australian families underestimate. If you engage a nanny directly and you control their hours, duties and how the work is done, you are generally their employer rather than a client of a contractor. That relationship carries obligations: withholding PAYG tax and remitting it to the Australian Taxation Office, paying the superannuation guarantee on their behalf, holding workers compensation cover through your state or territory scheme, providing leave entitlements including annual leave and personal leave for permanent employees or casual loading in place of them, issuing payslips, and keeping employment records. A nanny cannot simply be treated as a contractor because they invoice you, since the ATO applies a substance test rather than accepting the label. This is general information and not legal, tax or industrial relations advice, and the right sources are the ATO, the Fair Work Ombudsman and your state workers compensation authority.

On costs, and the real number

Because of those obligations, the hourly rate is not the cost. Superannuation guarantee adds a percentage of ordinary time earnings, which on a $55,000 wage is several thousand dollars a year. Workers compensation premiums for a household employer typically run several hundred to around a thousand dollars annually depending on the state and wage level. A payroll service to handle single touch payroll reporting, payslips and super payments costs roughly $500 to $1,100 a year. Paid leave means you are covering four weeks of annual leave and personal leave for a permanent employee, which is effectively built into the annual figure. A useful planning rule is that the true cost of directly employing a nanny is roughly fifteen to twenty per cent above the raw wage once superannuation, workers compensation and payroll administration are included.

Agency placement versus agency employment

Australian nanny agencies operate on two distinct models and they have very different cost profiles. In the placement model, the agency finds and screens a candidate and charges a one off fee, commonly $2,000 to $6,000 or a percentage of the first year salary, after which you employ the nanny directly and carry all the obligations described above. In the ongoing model, the agency employs the nanny and charges you an hourly rate at a premium of roughly $5 to $12 above the direct rate, in exchange for handling payroll, superannuation, workers compensation, insurance and replacement cover if the nanny is sick. For a first time employer, the ongoing model often justifies its premium purely on compliance risk and the ability to get a replacement when your nanny is unwell.

Subsidies and why nannies usually miss out

The Child Care Subsidy applies to approved care services, and a standard private nanny arrangement is not an approved provider, so most Australian families receive nothing toward a nanny. The exception is the In Home Care program, a small capped stream designed for families who genuinely cannot access mainstream care, for reasons such as complex or challenging needs, shift work with non standard hours, or geographic isolation. Places are limited, eligibility is assessed, and care must be delivered through an approved In Home Care service rather than a nanny you find yourself. Families comparing a nanny against long day care need to compare a subsidised centre fee against an unsubsidised nanny cost, which is why nannies usually only become financially competitive at three or more children or with unusual hours.

Nanny share and live in arrangements

Two structures reduce the cost meaningfully. A nanny share splits one nanny between two families, with each family paying roughly $18 to $28 an hour instead of $32 to $45, which is the single largest saving available. It requires a written agreement covering whose home hosts the care, how sick days and holidays are handled, what happens when only one family attends, and critically who is the employer of record, since that determines who carries superannuation and workers compensation. A live in nanny accepts a lower cash wage in exchange for accommodation and usually meals, typically reducing the hourly cost by fifteen to twenty five per cent. Live in arrangements need clear written boundaries on hours and off duty time, and the value of board provided can have tax consequences worth checking with an accountant.

Comparing a nanny with centre based care

The honest comparison depends on how many children you have. Long day care in Australian capitals runs roughly $130 to $200 a day per child before the Child Care Subsidy, and the subsidy reduces that substantially for most families. A nanny costs the same whether you have one child or three, which is where the maths flips. For one child, centre care is almost always cheaper after subsidy. For two children the numbers get closer. For three children, or for families needing early mornings, evenings, weekends or shift coverage that no centre offers, a nanny frequently wins on both cost and practicality. Build the comparison on the total landed annual cost including superannuation and workers compensation on the nanny side, and the post subsidy out of pocket on the centre side, because comparing an hourly rate to a daily fee produces nonsense.