Superannuation guarantee scheme: exempt employee

Is the employer required to make superannuation guarantee payments on behalf of the person who is engaged as a nanny, if the employment is for not more than 30 hours per week?

No. The employer is not required to make superannuation guarantee payments on behalf of the person who is engaged as a nanny.

The duties of the employee are to act as nanny to the children of the employer. A contract of employment is in place. The employee is employed less than 30 hours per week during the period of employment.

Subsection 11(2) ( Superannuation Guarantee (Administration) Act 1992 (SGAA)) deals with the remuneration of a person, under a contract for employment, where the person is employed for not more than 30 hours per week, in work that is wholly or principally of a domestic or private nature. Such remuneration is not to be taken into account as salary or wages for the purposes of the SGAA in determining superannuation guarantee liability.

We consider the duties of the nanny represent work of a private or domestic nature.