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  • Withholding from payments to household employees

    You may need to withhold tax from payments you make to your household employees for providing domestic services. This includes nannies, carers, cleaners, gardeners, housekeepers or support workers directly employed by participants in the national disability scheme.

    We have tools available to assist you to work out if you need to withhold and if so, how much.

    On this page:

    See also:

    Employee or contractor

    You can use our Employee/contractor decision tool to work out if your worker is an employee or contractor for tax and super purposes.

    You do not need to withhold amounts if you pay a third party, such as a nanny agency, which provides and pays your household workers.

    Next step:

    Register for PAYG withholding

    If your workers are employees, you must apply to register for withholding before you are required to withhold an amount from a payment.

    You do not require an Australian Business Number (ABN) if you are only employing household employees for providing domestic services. In these cases you will be issued with a withholding payer number instead of an ABN.

    Next step:

    Tax file number (TFN) and withholding declarations

    Each household employee should complete a Tax file number declaration. This form will give you information to help you work out how much to withhold from your employees' payments.

    An employee may also complete a Withholding declaration to tell you what adjustments to make to the standard amount of tax you withhold from their payment.

    Next steps:

    Amount to withhold

    To work out the correct tax amount to withhold from payments you make to employees, use the information employees have given you in their tax file number declaration form and withholding declaration form (if applicable).

    Next steps:

    See also:

    Super requirements

    You may be required to pay super guarantee contributions for your household workers.

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    Reporting and paying withheld amounts

    Once you're registered for PAYG withholding, we'll send you an activity statement, usually on a quarterly basis, that you will need to complete and return to us.

    Additionally, you will also need to:

    • pay us the amounts withheld from your employees' payments
    • provide your employees with a payment summary, and
    • send us a completed annual report after the end of each financial year.

    See also:

      Last modified: 05 Apr 2017QC 16430