Contents
Babysitting is more than just a way for teenagers to earn a bit of extra pocket money – it’s a rapidly growing business opportunity in Australia, offering flexibility, community service, and real earnings potential for those who approach it professionally. Whether you want to become a babysitter on your own, or aim to create a babysitting agency, launching a babysitting business comes with its own opportunities and legal obligations.
That said, opening a babysitting business is not as simple as posting your details on a community board or app and starting work. There are legal steps, regulatory requirements, and risk management measures you’ll need to address to succeed and protect yourself, your clients, and the children in your care. Understanding these is critical to building your babysitting business the right way from day one – and that’s where we can help.
In this article, we’ll walk you through everything you need to know about how to start a babysitting business in Australia, from planning and registration through to legal contracts and compliance. If you’re asking “how do I become a babysitter?” or “how do I start babysitting as a business?” – read on to get clear, actionable answers.
What Counts As a Babysitting Business?
Before we dive into the legal steps, it’s worth clarifying what we mean by a babysitting business for the purposes of this guide. A babysitting business is any arrangement where you or your team provide short-term childminding services for families, usually in the parents’ home. This might be occasional evening work, weekend care, or, in some cases, more regular bookings.
Operating a babysitting business in Australia typically looks like:
- Offering one-off or ongoing babysitting sessions to local families
- Running your own solo babysitting brand or starting a babysitting agency (matching families with a network of sitters)
- Providing care for children of varying ages (not a formal childcare centre, which is regulated differently)
Babysitting services are distinct from registered childcare or family daycare businesses, which have their own licensing and regulatory requirements. If you’re in doubt about whether you need a formal childcare licence, it’s wise to seek legal guidance early.
How Do I Start a Babysitting Business?
Starting a babysitting business involves much more than just caring for children – you’ll also need to take the right business and legal steps to operate safely, build trust with families, and ensure your business is set up for success. Here’s a step-by-step guide to get you started.
1. Research and Create Your Business Plan
Every successful business starts with a plan. Even in a people-focused industry like babysitting, you’ll benefit from thinking strategically about your goals and how you’ll reach your target families.
- What services will you offer? (e.g. evening care, school holidays, overnight jobs)
- Will you work solo or create a babysitting agency?
- Who is your target audience (e.g. busy professionals, shift workers, families with special needs)?
- How will you market yourself (local ads, social media, online platforms)?
- What will you charge – and how does your pricing compare to competitors?
Your business plan will also guide your major decisions, including which business structure to choose and the legal documents you’ll need.
2. Choose a Business Structure and Register Your Business
Before you start working with clients, decide how you’ll structure your babysitting business. In Australia, the main options are:
- Sole Trader: The simplest and most common way if you’re operating on your own. You’ll need to apply for an Australian Business Number (ABN) – see our ABN registration guide for the steps.
- Partnership: If you’re running the business with one or more people, a partnership might suit. Make sure you have a clear partnership agreement.
- Company: For those planning to scale, hire a team, or protect their personal assets with limited liability, starting a Pty Ltd company is worth considering, though it has additional setup and compliance requirements.
You’ll also need to:
- Register your business name if you use a trading name
- Register for GST if you expect to earn over $75,000 per year (check GST requirements here)
Taking these steps ensures you’re set up legally and can operate professionally from day one.
3. Ensure You Have the Right Skills and Checks
Trust and safety are at the core of any babysitting business. Families will want to see that you, and anyone working with you, are responsible, trained, and have completed the required background checks:
- Working With Children Check (WWCC): Mandatory in every state and territory. This background check screens for criminal offences and is essential.
- First Aid Certificate: Having (and maintaining) up-to-date first aid and CPR certification is strongly recommended for credibility and safety.
- Childcare or Babysitting Experience: Families will look for references or proof of experience. Consider doing some volunteer work or short courses to strengthen your offering.
If you’re starting an agency, ensure every babysitter in your team meets these requirements and consider codifying your standards in an internal policy document for consistency.
4. Set Up Your Business Operations
This includes practical steps like:
- Creating a website or listing your business on trusted babysitter platforms
- Deciding how clients will book and pay (cash, direct deposit, online payments?)
- Outlining clear policies around bookings, cancellations, pricing, and emergencies
- Organising public liability insurance – vital for peace of mind if something goes wrong
Documenting your processes helps you operate efficiently, and gives both you and your clients a clear sense of security about what to expect.
5. Put Your Legal Protections in Place
This is a crucial step many babysitters overlook – but strong legal documents and compliance give your clients confidence and protect your business from disputes or liabilities.
Do I Need to Register as a Company or Sole Trader?
You are not legally required to set up a company to start babysitting – many babysitters operate as sole traders. However, it’s important to weigh your options as your business grows. A company structure provides limited liability, meaning your personal assets are typically protected if something goes wrong in the business. This can be especially useful if you plan to hire staff or scale your operations.
Registering as a company will involve fees and more ongoing compliance (such as ASIC reporting and company tax returns), so it’s a good idea to get professional advice to help you choose the right legal structure for your babysitting business goals.
What Are the Legal Requirements to Start a Babysitting Business?
Launching a babysitting business in Australia means complying with a range of laws to ensure the safety of children and the legitimacy of your business. Let’s break down the key legal areas you need to be aware of.
Permits, Licences and Checks
- Working With Children Check (WWCC): Required for anyone working with children in any state or territory. Check renewal and application requirements in your state.
- Police Check: Families may also request a National Police Check for extra reassurance, even if not formally required by law.
- First Aid (CPR) Certification: While not legally required everywhere, it’s best practice for all babysitters to hold current certifications.
If you plan to offer additional services (such as transporting children), check for any other legal requirements or insurance needs.
Australian Consumer Law (ACL)
As a service provider, you must follow the Australian Consumer Law (ACL). This covers:
- Truthful advertising of your services
- Fair and transparent pricing
- Meeting client expectations and service guarantees
Honesty and reliability are not just good business – they are legal obligations under the ACL. Failing to meet these requirements could expose you to consumer complaints or legal penalties.
Employment Law (If You Hire Others)
If you plan to build a babysitting agency or hire help, you must comply with Australian employment law, including:
- Providing proper employment contracts or contractor agreements
- Paying at least the minimum wage and entitlements
- Ensuring a safe workplace (even if the work is at the client’s home)
It’s important to correctly distinguish employees from independent contractors, as this affects tax, superannuation, and other legal responsibilities.
Privacy and Data Protection
If you collect personal information from families (names, addresses, emergency contacts, or even information online), you may have obligations under the Privacy Act 1988. Having a clear Privacy Policy is not just best practice – it’s required if you meet certain thresholds or collect sensitive information.
Insurance Requirements
While insurance isn’t always legally mandated for sole babysitters, it’s strongly recommended to have:
- Public liability insurance – covers injury or property damage while working
- Personal accident insurance – for your own protection
If you form a company or agency, more specific insurance (such as workers compensation for employees) may apply.
Intellectual Property
If you develop a unique business name or logo for your babysitting business, consider registering your trade marks to prevent others from using your brand.
What Legal Documents Will I Need for a Babysitting Business?
Having the right contracts and policies in place keeps your business safe and professional. The exact documents you need will depend on how you operate, but key babysitting business documents include:
- Babysitting Agreement / Client Terms & Conditions: Sets out your services, fees, expectations, cancellation policy, and liability disclaimers. This helps prevent misunderstandings and gives both you and your client clarity.
- Privacy Policy: Required if you collect any personal information, especially if you publish a website. Outlines how you use, store, and protect clients’ data.
- Website Terms & Conditions: If you have a website, these outline the terms for people using it and help limit your liability.
- Employment/Contractor Agreements: If you hire others, these documents outline their duties, payment terms, and protect your business from disputes.
- Non-Disclosure Agreement (NDA): Useful if you share sensitive information (e.g., about families or internal operations) with suppliers or business partners.
Every business is unique – it’s often wise to have a lawyer review your documents to make sure they fit your business model and comply with the law.
Will My Babysitting Business Need To Pay Tax and Superannuation?
If you operate as a sole trader or company, you’ll be responsible for reporting your income and paying tax. If your turnover exceeds the GST threshold ($75,000 per year), you must also register for GST. When you employ staff, you must pay superannuation and withhold PAYG tax as required by law.
Staying on top of your tax, reporting, and superannuation obligations is just as critical as your other compliance steps – consider engaging an accountant or bookkeeper early to stay ahead of your finances.
Is There a Difference Between Babysitting and Family Daycare?
It’s important to recognise that formal childcare, such as running a family daycare or a childcare centre, is heavily regulated. These businesses require specific licences, registration with the relevant state authority, and compliance with the Education and Care Services National Law and Regulations. If your babysitting business starts offering regular group care, operates outside the child’s home, or serves as the primary day care provider, you should seek legal advice to clarify your obligations.
What If I Want To Buy or Franchise a Babysitting Business Instead?
Sometimes, buying into an established babysitting agency or franchise may seem simpler than starting your own. This path can offer
- Existing branding and systems
- Established client base
- Franchise or agency support
If you take this approach, you need to carefully review the sale agreement or franchise agreement and carry out thorough legal and financial due diligence before signing anything. Each arrangement comes with unique obligations, including possible restrictions on how you can operate or market your services.
Key Takeaways
- Starting a babysitting business in Australia involves more than just a love of children – it requires careful business planning, registration, and the right legal protections.
- Decide whether to operate as a sole trader or company and register your business, ABN, and any necessary business name.
- Obtain a Working With Children Check, first aid certificates, and any other required licences or insurance for safety and professionalism.
- Put essential business contracts and policies in place, such as Client Terms, Privacy Policy, and (if hiring) Employment Agreements, to manage risk and set clear expectations.
- Understand your compliance obligations under employment law, privacy law, and the Australian Consumer Law, and seek legal advice to tailor documents to your needs.
- Consider your tax, GST, and superannuation obligations early to avoid surprises.
If you would like a consultation on starting a babysitting business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
Meet Our Lawyers for Business Set Up
Get in touch now!
We'll get back to you within 1 business day.
Book in a free consultation with us to discuss your legal needs.