Question 1

When is a nanny cheaper than daycare in Australia?

Accepted Answer

As a rule of thumb, a nanny becomes cheaper than daycare when you have 3+ kids needing care at the same time, high daycare fees ($160+/day in capital cities), or a family income above ~$190K where your CCS rate drops to 50% or lower. The exact breakeven depends on the nanny's hourly rate and whether you're employing directly or through an agency.

Question 2

What are the real costs of employing a nanny directly in Australia?

Accepted Answer

If you employ a nanny directly you're the employer, which means you pay: 12% superannuation (from 1 July 2025), ~11.5% for 4 weeks annual leave + 2 weeks personal leave, ~4.2% for public holidays (around 11 days), and 2-4% for workers compensation insurance. Total overhead is typically ~30% on top of the hourly rate. A $35/hr headline rate becomes $45.50/hr all-in.

Question 3

Does Child Care Subsidy apply to nannies?

Accepted Answer

Only if the nanny operates through an approved In-Home Care service. Private direct-employment nanny arrangements do not attract CCS. If you want CCS applied, the nanny (or the service she works through) must be registered with the Department of Education as an approved provider.

Question 4

What's the difference between a direct-employed nanny and an agency nanny?

Accepted Answer

Agency nannies quote an all-in hourly rate that includes their super, leave, insurance and the agency's margin — typically $40-$60/hr. You pay the agency and they pay the nanny. Direct employment is cheaper per hour ($25-$40/hr) but you handle payroll, super, PAYG withholding, workers comp and record-keeping yourself. For 30+ hours per week, direct employment is almost always cheaper even with overhead.

Question 5

Is a nanny-share cheaper than a single-family nanny?

Accepted Answer

Yes — nanny-share (two families, one nanny, both sets of kids together) typically halves the cost per family. A $35/hr nanny split across two families becomes $17.50/hr per family. Coordination is the tradeoff: schedules need to align, kids need to get on, and if one family pulls out the other may face a rate hike.

nanny vs daycare cost calculator — is a nanny cheaper? (Australia 2026)

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