Why Nannies must be paid Legally?

In this episode of State of the Nanny, our CEO Louise Dunham speaks with Kathleen Webb, co-founder of HomeWork Solutions, to discuss the importance of legal employment for Nanny Educators. They explore the concept of Nanny tax, the consequences of not paying Nanny - Educators legally, and the evolving landscape of Nanny Employment and Taxation.

Inside the Episode

Kathleen offers a deep dive into the risks and realities of cash-in-hand payments and under-the-table nanny arrangements. She makes a strong case for proper employment compliance, championing the benefits it brings to both families and caregivers:

The hidden hazards of tax avoidance and informal pay
How legal employment safeguards nanny rights—superannuation, workers' comp, fair conditions
The long-term benefits for families: stability, transparency, and peace of mind
Why nannying is a professional career that deserves structure and respect

Why This Matters

Informal nanny arrangements—while seemingly convenient—carry real legal and ethical risks. Proper employment practices:

Ensure caregivers receive tax-paid wages, benefits, and protections
Provide families with financial clarity and legal backing
Professionalise the nanny role, reinforcing that it’s more than babysitting

This episode serves as a crucial reminder of why nanny education isn't just about childcare—it’s also about ensuring fair, lawful, and sustainable work practices.

Listen Now

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Whether you're a parent, nanny, policy advocate, or agency rep, this episode equips you with essential insights to support healthy employment culture in home care. Stay tuned as Louise continues the conversation to elevate and empower the voices in our industry.