The best payroll software in Australia to choose in 2026

Payroll has evolved a lot over time. A few years ago, payroll largely meant paying employees accurately on time. Today, founders need to manage everything from STP Phase 2 reporting to PAYG withholding and Payday Super requirements to award interpretation and leave entitlements.

With an increasingly distributed workforce, payroll remains one of the largest operating expenses for most businesses. The challenge is not just to simply process the pay; it is about maintaining compliance as you gain visibility into how payroll affects cash flow, budgets, hiring plans, and overall business performance.

This is why it is important to choose the best payroll software in Australia that offers more than just an HR decision. It helps you visualise finance and operational decision-making too.

Best payroll software in Australia in 2026

Choosing the right payroll system for small business in Australia comes down to one question: is it ready for Payday Super? Starting 1 July 2026, every Australian employer is required to pay superannuation at the same time as wages and not quarterly. This requires the contributions to reach employees’ funds within 7 business days of the payday. STP Phase 2 reporting is also now the permanent standard for all employers in Australia.

Payroll software comparison table

[Table:1]

1. Aspire¹

If you are looking for a one-place solution that connects your spending, cash flow, and payroll together, then Aspire¹ is the right choice for you. Aspire is an all-in-one finance platform (its Australian entity, AFT AU Pty Ltd, holds an ASIC AFSL) that supports your business with multi-currency accounts*, corporate cards², expense management, and fast cross-border payments. If you are hiring beyond Australia, Aspire’s Employer of Record, powered by Deel, lets you compliantly hire and pay staff in around 150+ countries without needing to set up a local entity. You can manage everything using the same Aspire account, and onboarding only takes about five days.

• Best for: Businesses that want their payroll and finance stack connected in one platform.
  
• Key features: You can open multi-currency business accounts, payroll tool integrations, Deel-powered EOR, and FX cashback
  
• Pricing: Free for small businesses and startup businesses. Aspire EOR starts from AUD $399/month/ employee. There is custom pricing based on how complex the operations are.
  
• Pros: Full finance visibility, excellent spend controls, low/no FX fees with cashback^, best if you are hiring globally, integrates with Xero and QuickBooks
  

2. Employment Hero

Employment Hero is one of the best payroll software in Australia. It is also known to quietly power several competitors, such as QuickBooks, in Australia. You can combine automated payroll, modern award interpretation, STP Phase 2 reporting, and a full HR stack in one system using Employment Hero. Their HeroClear feature is specifically built for the 1 July 2026 Payday Super rules.

• Best for: This is a robust payroll system for small businesses that want payroll and HR together.
  
• Key features: The best of what this platform offers is award interpretation, STP Phase 2, employee superapp, HR/ onboarding, rostering, and HeroClear embedded super clearing
  
• Pricing: Payroll-only plans from a minimum of AUD $10/month (billed on the greater of the minimum or actual billable employees); full HR + payroll tiers are quote-based. Super processing is charged per employee per batch (AUD $0.20 via HeroClear, AUD $0.30 via the legacy Beam service). All prices ex GST.
  
• Pros: This is your one-stop HR solution that offers the deepest Australian compliance.
  
• Cons: You are not asked to make any monthly commitments, which makes it pricey for small teams
  

3. Xero Payroll

Xero Payroll is a popular payroll system in Australia. A large number of Australian businesses are already on Xero accounting, payroll is already built in, and the experience is seamless. Since mid-2025, payroll and automated super are included in the Xero Payday Super readiness hub in every Xero business plan, up to a headcount limit.

• Best for: Best payroll system for small businesses in Australia
  
• Key features: The software offers automated pay runs, STP Phase 2, leave and super processing, and auto-collection.
  
• Pricing: Grow AUD $7.50/mo (payroll for 2), Comprehensive AUD $10/mo (5), Ultimate 10 AUD $13/mo (10). New customers currently get 90% off for 6 months (EOFY offer ending 30 June 2026), and standard prices rise from 1 July 2026.
  
• Pros: This payroll system in Australia is liked by users as it is easy to use, offers an integration ecosystem, and is widely adopted by Australian accountants
  
• Cons: The platform charges more as you hit the per-plan employee limit and offers limited workforce management tools
  

4. MYOB

MYOB is a well-established Australian provider that was founded in 1991 with deep ATO compliance, strong inventory, and a focus on higher tiers. It also offers flexible payroll. The software is at par with the recent changes in the payroll industry, offering Single Touch Payroll reporting to the ATO and offering an add-on self-service app (MYOB Team) for timesheets.

• Best for: It is the best payroll software in Australia for growing businesses, especially those needing inventory/job costing
  
• Key features: It offers features like payroll, PAYG withholding, STP Phase 2, superannuation, and inventory
  
• Pricing: Business Lite from roughly AUD $35/month, Pro mid-tier, AccountRight Plus AUD $70–AUD $165/mo. Payroll is a per-employee add-on (around $3/employee/mo) on Lite and Pro, and is included unlimited on AccountRight.
  
• Pros: The software offers a mature ecosystem, strong AU compliance, and unlimited payroll on AccountRight
  
• Cons: The pricing structure is slightly fiddly, and the interface may feel slightly older compared to newer rivals
  

5. Reckon Payroll

Reckon Payroll is a well-known payroll provider in Australia, which is ASX-listed with 30+ years in the market. It is a cloud-based software built specifically for the Australian market. Its standout is flat-rate pricing that doesn't scale per employee, a genuine advantage as your team grows.

• Best for: It caters cost-wise to small businesses in Australia wanting predictable pricing
  
• Key features: This Australian payroll software is ready for STP Phase 2 and Payday Super and offers EOFY reporting with data hosted in Australia.
  
• Pricing: Reckon Payroll App from AUD $16/month flat (unlimited employees, not per-head); Reckon One accounting from $24/month with payroll as a module.
  
• Pros: With its flat-pricing, it offers excellent value, and it’s great for Australian-based companies, and the software is built and hosted in Australia.
  
• Cons: There are fewer advanced features when you compare it with other premium platforms in the market right now.
  

6. Microkeeper

Microkeeper is one of the best payroll software Australia as it offers a unified platform for payroll, rostering, timesheets, and HR. It offers strong support to businesses in retail, hospitality, healthcare, cleaning, and other award-heavy, shift-based sectors.

• Best for: This payroll software is perfect for shift-based businesses that need rostering and payroll in one platform
  
• Key features: This payroll platform offers award interpretation, rostering, time and attendance, STP Phase 2, and real-time labour cost visibility
  
• Pricing: Per employee/month, the payroll and STP costs around AUD $2.25, the standard plan costs around AUD $6, and the premium plan costs around AUD $6.
  
• Pros: Microkeeper offers a strong workforce-management tool, transparent per-employee pricing, and scales to thousands of staff
  
• Cons: Rostering can be a complex process to implement across various departments. The software may feel less focused on financial reporting
  

7. Payroller

Payroller is one of the best payroll software in Australia, also known to be one of the most accessible options used by around 180,000+ small businesses. It's easy to set up an offering STP app, which is free for single-employee payroll, making it a common starting point for sole traders.

• Best for: It is one of the payroll systems in Australia for sole traders and micro employers
  
• Key features: The software is STP compliant in pay-runs, assists you with payslips, rostering, and Payday Super via Beap clearing house
  
• Pricing: Free for Lite plan, single-employee payroll on the mobile app; AUD $2.99 Standard plan, for the web app, Xero integration, paying more than one employee, and making super contributions.
  
• Pros: There is a free entry point for you if you want to use it for a single employee on the mobile app; also, it is very easy to set up, as compared to other competitors.
  
• Cons: Limited advanced functionality; costs appear as you scale beyond one employee
  

8. QuickBooks Payroll

QuickBooks Online is one of the best payroll software in Australia if you are looking for a tool that can help you automate employee payments, tax calculations, and compliance. Users get a connected payroll experience, though in Australia, QuickBooks Payroll is powered by Employment Hero under the hood, which is why its compliance credentials are strong.

• Best for: It is the best choice if you are already connected with QuickBooks Online, as it helps you keep payroll together with your financial stack.
  
• Key features: It offers features like Payroll via Employment Hero, STP Phase 2 compliance, automated modern awards, and accurate tax calculations
  
• Pricing: Standard Payroll adds AUD $6/active employee/month (incl. GST), Advanced Payroll adds a further AUD $10/month.
  
• Pros: You can integrate this software with Native QuickBooks. It also offers Employment Hero’s award engine and affordable per-employee payroll.
  
• Cons: If you are looking for payroll software primarily, this may not be the right fit for you. It offers payroll more as an add-on rather than native. It has a smaller AU-specific payroll footprint compared to Xero/MYOB.
  

9. Rippling

Along with being one of the best payroll software in Australia, it is a highly automated workforce management tool that helps unify payroll, HR, and IT (device and app management) all in one platform. It also has Australia compliance built into it. The software is also Payday Super ready.

• Best for: If you own a scaling business that wants one system all across HR, IT, and payroll, then Rippling is the way to go
  
• Key features: It offers a unified data layer across all three HR, IT, and payroll dynamics, with a globalized approach that can run on a localised list of employers or on Employer of Record (EoR) to hire and pay employees in countries where you don't have a local entity; and contractor payments across 185+ countries and 50+ currencies. You can also build custom workflows with it.
  
• Pricing: Pricing depends on the complexity and scale of tasks
  
• Pros: It is a comprehensive tool with strong automation, solving problems across HR, payroll, and IT.
  
• Cons: Based on the complexity of your business and teams, the costing may be more premium than other providers and may feel heavy for small or Australia-only teams.
  

10. Deel

Deel is a global cloud-based human resources and payroll platform. Designed to help companies hire, onboard, and manage both direct and local employees and global contractors. You can utilise the unified system to process localised payroll along with the complex Australian regulatory and tax standards.

• Best for: If you are willing to build your company internationally or looking to hire and pay global contractors, Deel is the payroll system to choose.
  
• Key features: The platform has STP 2, offers seamless workflows for international payroll, contractor payments, EOR, and global compliance
  
• Pricing: Pricing is custom-based on the complexity of your payroll and HR team. Plans start from AUD $1/ month/ worker
  
• Pros: It is one of the strongest choices if you are looking to simplify international hiring and compliance
  
• Cons: Might overkill for domestic or Australia-only payroll requirements
  

Essential payroll features to check in the best payroll software in Australia

Payroll in Australia has changed rapidly in 2026. The gap between good enough to use and genuinely compliant software is visible now more than ever. With Payday Super becoming a part of the Australian payroll from 1 July 2026 and STP Phase 2 now being the permanent reporting standard, the features below have now become non-negotiable.

1. STP Phase 2 compliance

Single Touch Payroll 2 is now mandatory for all Australian employers, requiring you to expand reporting to the ATO with each pay run. This includes disaggregated gross pay, income types, and other employment details. Any Australian payroll software that you choose must have STP Phase 2 reports automatically keeping pace with ATO changes.

2. Payday Super support

Another defining payroll change that will come into effect from 1 July 2026 states that super must be paid at the same time as salary and wages. This means that you can’t hold the contributions till the quarter ends, and they should reach the employees’ funds within 7 business days for payday. The software that you choose should be able to calculate and disburse super every pay cycle. This can be ideally through a built-in or tightly integrated clearing house so contributions land on time and you avoid the Super Guarantee Charge.

3. Award interpretation automation

The best payroll software in Australia should be able to manage Australia’s complex modern award system. The platform should be able to work along with pay rates, penalties, overtime, allowances, and loadings that vary by classification, hours, and day worked. Automated award automation helps in applying the correct rates for each shift, dramatically reducing underpayments. This is a must-have feature for award-heavy industries like hospitality, retail, healthcare, and cleaning.

4. Superannuation Guarantee tracking

The Super Guarantee rate is now 12% (from 1 July 2025), so accurate SG calculation on ordinary time earnings is critical. Look for software that tracks contribution caps, supports multiple super funds, handles SuperStream, and pairs cleanly with Payday Super timing.

5. Automated tax calculations

PAYG withholding, the Medicare levy, and HELP/STSL repayments should be calculated automatically using the latest ATO tax tables, and updated whenever rates or thresholds change. This removes manual lookups and protects you from withholding errors.

6. Employee self-service

A self-service portal or mobile app lets employees access payslips, payment summaries, and super details, request leave, and update their own information, cutting payroll admin and reducing back-and-forth. The best platforms extend this to timesheets and rostering.

7. Integrations

Payroll rarely operates in isolation. Strong integrations with accounting (Xero, MYOB, QuickBooks), time and attendance, rostering, HR, and banking eliminate double data entry and keep your finances in sync. The more connected your stack, the less manual reconciliation at pay time and EOFY.

8. Reporting and analytics

Real-time reporting on labour costs, leave liabilities, payroll tax, and departmental spend turns payroll data into a planning tool. As wages become most businesses' largest expense, dashboards that show where workforce spending is going, and how it affects cash flow, help you budget and forecast with confidence.

Choosing the best payroll software in Australia

There's no single best payroll software in Australia, there's the one that fits how you actually work. A sole trader and a 200-person hospitality group have very different needs, and the right tool is the one that handles your awards, your headcount, and the systems you already run, without making you think about it. What's non-negotiable in 2026 is Payday Super readiness, so make that your first filter and work backwards from there. Get the foundation right, and payroll stops being a monthly scramble; it becomes one less thing to worry about, and a clearer view of where your money's going.

Frequently asked questions

What is the best payroll software in Australia?

For most Australian businesses, Employment Hero is the strongest all-round payroll and HR platform, and it's the most-used in the market. If you already run Xero or MYOB accounting, their built-in payroll is usually the most seamless choice; QuickBooks users get payroll powered by Employment Hero.

Which payroll software is ready for Payday Super (1 July 2026)?

Major Australian providers, including Employment Hero, Xero, MYOB, QuickBooks, Reckon, Microkeeper, Rippling, and ADP, have stated Payday Super readiness. Because the rules start 1 July 2026, confirm your provider's specific Payday Super support before the deadline.

Is there free payroll software in Australia?

Payroller offers free STP-compliant payroll for single-employee pay runs via its mobile app, with fees applying for the web app, multiple employees, and super contributions.

What's the cheapest payroll software for a small Australian team?

Reckon Payroll's flat-rate pricing (from AUD $15.99/month for unlimited employees) and Microkeeper's per-employee tiers (from AUD $2.25/employee/month) are among the most cost-effective for small teams, alongside Payroller for sole traders.

Is KeyPay still available?

KeyPay rebranded to Employment Hero Payroll in 2023. It's the same payroll engine — the brand, login, and packaging now sit under Employment Hero (and the same engine is also white-labelled as ELMO Payroll and PayCat).