Household Employee Rules Australia 2026: Tax, Super & Legal Guide

A household employee is someone you hire directly (not through an agency or company) to perform regular work in or around your private home. Common examples include:

• Nannies and babysitters (live-in or part-time)
• Cleaners and housekeepers
• Gardeners and handypersons
• Private chefs and personal carers

If you pay someone regularly and direct their work—even for just a few hours a week—they are likely considered your employee rather than a contractor. This distinction is important, as it affects your tax, superannuation, and insurance responsibilities.

Employing someone in your home means you take on several important obligations. Here’s what you need to know for 2026:

PAYG Withholding and Tax Reporting

As a household employer, you may need to register for Pay As You Go (PAYG) withholding with the Australian Taxation Office (ATO). This means you are responsible for deducting income tax from your employee’s wages and reporting these payments to the ATO. In 2026, digital reporting options such as Single Touch Payroll (STP) and the myGov platform are available to help streamline this process.

Failing to withhold the correct amount of tax can result in penalties, so it’s important to check your obligations before your employee starts work.

Superannuation Guarantee

Household employers are generally required to pay superannuation for their employees if certain conditions are met. If your employee earns above a set threshold in a calendar month or works more than a certain number of hours per week, you must pay the Superannuation Guarantee (SG) into a complying super fund chosen by your employee. The SG rate is set by the government and may change over time.

Super payments are usually due quarterly. Make sure to keep records of all superannuation contributions and confirm the correct fund details with your employee.

Workers’ Compensation and Insurance

Each state and territory in Australia has its own rules regarding workers’ compensation insurance for household employers. In some states, you may be required to take out a specific household workers’ insurance policy if you hire someone to perform regular work in your home. This insurance helps protect both you and your employee in case of a work-related injury.

Check with your state or territory authority to understand your insurance obligations before your employee begins work. For more information on home insurance, you can visit our home insurance page.

Fair Work and Minimum Standards

Household employees are entitled to the National Minimum Wage, as well as other entitlements such as annual leave, sick leave, and notice of termination. You must issue payslips and keep accurate employment records. The Fair Work Ombudsman provides guidance on minimum pay rates and conditions for domestic workers.

It’s important to review pay rates and entitlements regularly, as these can change from year to year. For more on financial matters, see our finance section.

Taking on a household employee involves more than just agreeing on an hourly rate. Here are some practical steps to help you manage the process:

1. Draft a Written Agreement

A written employment agreement should outline the employee’s duties, hours, pay rate, and leave entitlements. This helps set clear expectations and can prevent misunderstandings.

2. Register with the ATO (If Required)

If you need to withhold tax, register as an employer with the ATO. You can do this online, and the process is designed to be straightforward for household employers.

3. Set Up Payroll and Record-Keeping

Use payroll software or a simple spreadsheet to track payments, tax withheld, and superannuation contributions. Issue payslips for each pay period and keep records for at least five years.

4. Arrange Insurance

Contact your state or territory authority to check if you need workers’ compensation or household workers’ insurance. Some home insurance policies may offer limited cover, but a dedicated policy is often required for regular employees.

5. Communicate Openly

Discuss job expectations, hours, and any house rules with your employee. Open communication helps build a positive working relationship and can resolve issues early.

6. Review Annually

Revisit pay rates and employment conditions each year, especially if there are changes to the minimum wage or entitlements.

In 2026, there are ongoing efforts to simplify household employer obligations. The ATO is piloting new online registration and reporting tools for household employers, which may become more widely available during the year. There are also reviews underway regarding minimum entitlements for domestic workers, which could lead to changes in pay rates or conditions.

Staying informed about these developments will help you remain compliant and avoid unexpected costs or penalties.

Do I need to pay superannuation for my cleaner or nanny?

You may need to pay superannuation if your employee earns above a certain threshold or works more than a set number of hours per week. Check the latest requirements with the ATO.

What insurance do I need when hiring a household employee?

Insurance requirements vary by state and territory. You may need a specific household workers’ insurance policy to cover work-related injuries. Check with your local authority for details.

How do I pay tax for my household employee?

If required, you must register for PAYG withholding, deduct tax from your employee’s wages, and report payments to the ATO. Digital tools are available to help manage this process.

Are household employees entitled to annual leave and sick leave?

Yes, household employees are generally entitled to minimum standards such as annual leave, sick leave, and notice of termination. Check the Fair Work Ombudsman’s guidance for details.

Hiring help at home can be a practical solution for many Australian families, but it’s important to understand and meet your responsibilities as a household employer. By following the steps outlined above and staying up to date with any changes in 2026, you can ensure a smooth and compliant employment experience for both you and your employee.