Subsidies for families

What will a nanny actually cost me?

Families participating in the Nanny Pilot Programme will pay an hourly fee for the nanny. Service providers are responsible for setting the hourly nanny fee and the service provider in your region will provide you with a copy of their fee structure before you commence care.

An hourly subsidy for each child will be taken off the nanny’s hourly fee as a fee reduction and will be paid directly to service providers. The subsidy families are eligible for depends on their total family income.

Families earning up to $60,000 per year are eligible for the maximum subsidy of $8.50 per child per hour, decreasing to the minimum subsidy of $5.00 per child per hour for those families earning between $165,000 and $250,000 per year (see table below for subsidy amounts). Families earning $250,000 per year or above are not eligible to participate in the pilot.

There is no annual cap on the amount of subsidy available.

The Nanny Pilot Programme is not intended to fully subsidise the cost of a nanny, families are subsidised for no more than 85 per cent of the nanny’s hourly fee.

Please note: Child Care Benefit and Child Care Rebate will not be paid for care provided under the Nanny Pilot Programme.

Total family income Number of children and hourly subsidy
(note this is not the hourly out of pocket cost)
1 2 3 4 5 6 7
Less than $60,000 $8.50 $17.00 $25.50 $34.00 $42.50 $51.00 $59.50
$70,000 $8.13 $16.26 $24.39 $32.52 $40.65 $48.78 $56.91
$80,000 $7.80 $15.60 $23.40 $31.20 $39.00 $46.80 $54.60
$90,000 $7.47 $14.94 $22.41 $29.88 $37.35 $44.82 $52.29
$100,000 $7.13 $14.26 $21.39 $28.52 $35.65 $42.78 $49.91
$110,000 $6.80 $13.60 $20.40 $27.20 $34.00 $40.80 $47.60
$120,000 $6.47 $12.94 $19.41 $25.88 $32.35 $38.82 $45.29
$130,000 $6.13 $12.26 $18.39 $24.52 $30.65 $37.78 $42.91
$140,000 $5.80 $11.60 $17.40 $23.20 $29.00 $34.80 $40.60
$150,000 $5.47 $10.94 $16.41 $21.88 $27.35 $32.82 $38.29
$160,000 $5.13 $10.26 $15.39 $20.52 $25.65 $30.78 $35.91
Between $165,000 and $250,000 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00

Examples

The Smith family

The Smith family has a total income of $90,000 and four children under school age who will be cared for by the nanny. The Smith family is eligible for a subsidy of $7.47 per child per hour, or a total of $29.88 per hour toward the cost of the nanny.

The Smith family’s nanny costs $36 per hour. The family will need to pay the difference of $6.12 per hour.

Nanny cost per hour

$36.00

minus

 

Subsidy amount per hour

$29.88

Difference the family has to pay per hour

$6.12

The Gray family

The Gray family has a total income of $170,000 and three children who will be cared for by the nanny. The family is eligible for the minimum subsidy of $5.00 per child per hour, or a total of $15.00 per hour toward the cost of the nanny.

The Gray family’s nanny costs $30 per hour. As such, the Brown family will need to pay the difference of $15.00 per hour.

 

Nanny cost per hour

$30.00

minus

 

Subsidy amount per hour for two children

$15.00

Difference the family has to pay per hour

$15.00

The East family

The East family has a total income of $110,000 and three children who will be cared for by the nanny at various times. The East family is eligible for a subsidy of $6.80 per child per hour.

The East family’s children require different amounts of care:

  • Jack is school aged and requires 15 hours per week
  • Jane is in formal preschool and requires 20 hours per week
  • Ben is not at school and requires 25 hours per week

The East family’s nanny is $26 per hour.

The East family would be eligible for a subsidy of $20.40 for each hour that all three children are being cared for by the nanny and would need to pay the difference of $5.60 per hour.

Where only two children are in the nanny’s care, the family would be eligible for a subsidy of $13.60 per hour and would need to pay the difference of $12.40 per hour.

Where only one child is in the nanny’s care, the family would be eligible for a subsidy of $6.80 per hour and would need to pay the difference of $19.20 per hour.