My time in the Nanny industry has taught me a lot. I’ve connected with some truly inspirational people (both colleagues and parents) who have instilled me with the most incredible insight around what it takes to raise a family. I’ve worked alongside some beautiful children who have taught me patience, friendship and love as we both explore …
Why I left the childcare industry. I loved working in Childcare. I spent over six years in the industry, working across all age groups, as an educator and an assistant. It was a very rewarding career. What other job do you turn up to hear your name being called out, followed by 20 little best …
It was a privilege to sit down with Vicki from Boiled Eggs and Soldiers and talk to her about my journey as an entrepreneur. I’m not going to lie, at times there have been moments of doubt with this crazy journey of running my own business but it’s be the most rewarding path my …
The first step I took in becoming a nanny was obtaining an ABN. It never crossed my mind to be employed nor seek work through an agency. Nothing against either of those options, I know plenty of nannies who run under an ABN with agencies. I just knew from day one I wanted to be my own boss and run my service through a small business model. Nannies who run their services this way are the minority but for the small few of us who do, it works. Employee or contractor, what’s important is that you educate yourself on your obligations based on your circumstance and today I want to run through why running as a sole-trader works for me and why it’s 100% legal.
What does a sole trader nanny look like?
Nannies who qualify for working under a sole-trader model typically have 3+ families at a time (1 – 2 days per family). The roster built from this would be full-time however to each family, the nanny would be part time/ casual. This means a sole-trader typically pays for their own super, leave, insurance and tax – this makes their rate higher than the average nanny. Families fortunate enough to have a sole trader nanny have the hassle free arrangement of receiving an invoice each week for bank transfer payment. Consider it the same as a trades person, you simply come in, offer your service and send the invoice.
Let’s stop for a moment and look at the situation if I was to be employed by each of these families. I could only claim the tax-free threshold on one of my families which would result in high tax rates for me on all my other clients. Families would also have to pay the $250+ fee for workers comp and organise a payroll each week to pay taxes and super.
Are you a sole trader?
I can assure you, the ATO has confirmed time and time again that I am eligible to run my service as a sole-trader. The main test I offer to nannies who are unsure is the 80-20 rule. This means that if your services derive more than 80% of your earnings in one tax year from one client, you’re an employee. If you’re unsure as to whether contractor or an employee you can take this survey on the ATO website. Further more, you can call the ATO, explain your situation and they will tell you the right thing to do.
Not everyone is a fan of the sole-trader nanny model and not all working arrangements qualify a nanny to work as a sole trader. In an industry that still remains largely unregulated it can be easy to get mixed messages about employment standards and what you should and shouldn’t do. I’m tired of hearing people publicly declare that under no circumstances can a nanny be a sole-trader because that information simply isn’t true. Seek out the right information for your situation.
Do you qualify as a sole-trader and not too sure how to get started? Lollaby offers tailored consultations to help you run you nanny service as a small business.
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Around 10 months ago the nanny industry received word of a game changing government incentive – The Nanny Pilot Programme. Finally, subsidised nannies for hard working Australian families who’s work schedules prevented them from seeking regular childcare. Unfortunately numerous hurdles have hindered the programme in it’s initial stages and set it up to potentially fail …
A blog by Lauren brown In April I gave my two cents on the nanny pilot program and what it means for the parenting and nanny community. Since the draft guidelines were released my excitement has turned to worry as there are some major flaws in the proposed funding. I was invited to write a …
In the last couple of months, a few opportunities have presented themselves that are too good to ignore, which has led to my decision to move Lollaby down to Melbourne but it’s with a heavy heart I leave Townsville. It was a decision I struggled with because it meant saying goodbye to the amazing families I have come across. Now that I have made the transition and planned for the future I can see it’s not goodbye it’s see you soon. My plans for Lollaby are growing and thanks to this newsletter and blog I can remain relevant and in touch with my community in Townsville.
I started Lollaby almost a year ago to the day. My aim was provide flexible and individual childcare solutions to Townsville families and I’m proud to have achieved that goal. My passion behind Lollaby was providing support to families so they can achieve financial security through their careers whilst maintaining a healthy and happy home environment. We’re in a new generation of parenting, the reality is if you want to live comfortably both parents need to work. This shouldn’t burden your family life, you should be able to embrace it and Lollaby is here to help you get there. Although I can no longer work directly with families in Townsville I want the support to grow further, which lead to the inspiration to start the Lollaby blog and newsletter. I don’t want to be the voice, I want to connect the voices to create a large family network who help each other.
Already the move to Melbourne has introduced me to some very talented people who can help Lollaby reach its fullest potential. Although the service itself has temporarily ceased in Townsville, the blog is still extremely relevant and I want to hear from all Townsville families in their triumphs, struggles, advice and support. In future I aim to bring Lollaby back to Townsville with a new wealth of knowledge and inspiration. I would love to stay connected with the families in Townsville to help provide a trustworthy and reliable solution to your childcare needs.
I can’t wait to see what we can all create together! I’m so excited for the next few issues that are coming out. I want to hear from anyone and everyone in topics and discussions that interest you, and connect you to some amazing professionals and experts in the way of families, childcare and raising children.
Thanks to all those who helped and supported me in the move – it already looks like it’s going to be a lot of fun!
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