Buyer's Guide · Australia
Australian Payroll Software in 2026
By Rajat Gupta, Founder & Lead Reviewer
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This guide ranks the 10 best Payroll Software options available in Australia as of 2026, ordered by SpotScore — a composite of ratings, verified reviews, and feature coverage. All tools listed support Australian compliance requirements and are evaluated for suitability in the Australian market.
Top Payroll Software in Australia: Quick Comparison
Ranked by SpotScore — a composite of ratings, reviews, and feature coverage
| # | Product | SpotScore | Rating | Pricing model | Local compliance (vendor-listed) |
|---|---|---|---|---|---|
| 1 | Xero | 9.6 | 4.7/5 (4,199) | Free Trial, Subscription | — |
| 2 | MYOB | 9.3 | 4.3/5 (100) | Free Trial, Subscription | — |
| 3 | QuickBooks Payroll | 9.2 | 4.4/5 (55) | Free Trial, Subscription | — |
| 4 | Microkeeper | 8.7 | 4.7/5 (90) | Free Trial, Freemium, Subscription | Single Touch Payroll (STP) |
| 5 | HR3 Payroll | 8.1 | — | Quotation Based | — |
| 6 | Payroo | 8.1 | 1.5/5 (41) | Freemium, Subscription | — |
| 7 | Payroller | 8.1 | — | Freemium, Subscription | Single Touch Payroll (STP), Superannuation |
| 8 | KeyPay | 8.0 | — | Free Trial, Subscription, Quotation Based | — |
| 9 | Employment Hero | — | 4.3/5 (46) | Free Trial, Subscription, Quotation Based, Freemium | — |
| 10 | Remote.com | 9.4 | 4.6/5 (50) | Subscription | — |
1. Xero
Streamline your finances and grow your business.
- SpotScore
- 9.6/10
- User rating
- Pricing model
- Free Trial, Subscription
- Availability
- Available in Australia
Xero software is a cloud-based accounting system that helps businesses manage their finances, run payroll, and save time so they can focus on growing their business. This single platform connects all your finances and invoices. It's the resource you need to run your business, no matter where your customers are, no matter how you send invoices.
2. MYOB
Streamline your business with MYOB
- SpotScore
- 9.3/10
- User rating
- Pricing model
- Free Trial, Subscription
- Availability
- Available in Australia
MYOB is accounting software for Australian and New Zealand small businesses, built in compliance with ATO requirements. It handles invoicing, expense tracking, payroll, tax reporting, and supplier management, with direct integration for working with accountants and bookkeepers. Customers can pay invoices directly by credit card through the platform.
3. QuickBooks Payroll
Streamline your payroll process with ease.
- SpotScore
- 9.2/10
- User rating
- Pricing model
- Free Trial, Subscription
- Availability
- Available in Australia
QuickBooks Payroll makes it easy to stay on top of your HR needs. It’s payroll software that gives you the power to handle all the payroll processing you need, from modeling an employee’s paycheck to tracking deductions and taxes. Whether you need a few employees or thousands, QuickBooks Payroll handles it all with ease.
4. Microkeeper
Efficiency meets affordability - simplify your payroll process.
- SpotScore
- 8.7/10
- User rating
- Pricing model
- Free Trial, Freemium, Subscription
- Availability
- Available in Australia
Microkeeper is a user-friendly payroll software that connects you with the world of business payroll processing: delivering quick online setup, automated time keeping and more. Payroll processing has never been easier or more affordable. Microkeeper gives you simplicity and convenience in meeting your payroll requirements.
5. HR3 Payroll
Streamline your payroll process with ease.
- SpotScore
- 8.1/10
- Pricing model
- Quotation Based
- Availability
- Available in Australia
HR3 Payroll is payroll software that allows HR professionals, accounting professionals and business owners to create and manage paychecks in a simple step-by-step process with the greatest level of accuracy. Users can prepare, run and print federal or state payroll for one employee or thousands in an easy to use, fully integrated solution that effectively works as your virtual HR department.
6. Payroo
Effortlessly manage payroll with Payroo.
- SpotScore
- 8.1/10
- User rating
- Pricing model
- Freemium, Subscription
- Availability
- Available in Australia
Payroo is a cloud based software to manage payrolls. The user can access their records from anywhere and at anytime. It is very simple to use, fast and accurate payroll tool that provides the functionality of professional solutions for a fraction of the cost. Payroo is the only payroll service that offers an easy to use and powerful online payroll software at an affordable price.
7. Payroller
Effortlessly manage payroll and boost your business growth.
- SpotScore
- 8.1/10
- Pricing model
- Freemium, Subscription
- Availability
- Available in Australia
Payroll is easy with our powerful, yet simple-to-use desktop software. With options that help you manage taxes, reduce errors and cut labor costs, payroll can be an integral part of growing your business. Run payroll faster with pre-printed checks, imports of employee information, electronic deposit directly into bank accounts and more.
8. KeyPay
Effortless payroll management at your fingertips.
- SpotScore
- 8.0/10
- Pricing model
- Free Trial, Subscription, Quotation Based
- Availability
- Available in Australia
KeyPay is our payroll software which can produce and print your time sheets with just one click. It produces payroll checks fully integrated with our database. It is also user-friendly, intuitive, reliable, affordable and fast. KeyPay is so easy to use that it eliminates the need for expensive accounting help or support.
9. Employment Hero
Streamline Employment with our All-in-One Solution
- User rating
- Pricing model
- Free Trial, Subscription, Quotation Based, Freemium
- Availability
- Available in Australia
Employment Hero is the global authority on employment, offering a world-leading Employment Operating System (eOS) that simplifies and optimises every stage of the employment process. Its award-winning platform combines HR, payroll, recruitment, and employee engagement tools with the groundbreaking employment superapp, EH Work, which integrates career management and financial wellbeing. Serving over 350,000 businesses and managing more than 2.5 million employees worldwide, Employment Hero reduces administrative burdens by up to 80%, enabling organisations to focus on their goals and create more productive, engaged teams. By revolutionising the employment marketplace, Employment Hero is making employment easier, more valuable, and rewarding for everyone.
10. Remote.com
Effortlessly manage your remote workforce.
- SpotScore
- 9.4/10
- User rating
- Pricing model
- Subscription
- Availability
- Available in Australia
Remote.com is a remote work management platform that simplifies global payroll, compliance, and workforce administration for businesses of all sizes. It seamlessly integrates with HR systems, centralizing payroll data for security and accuracy. The platform enables effortless onboarding with legally compliant contracts and benefits administration across multiple jurisdictions. Its Remote IP Guard safeguards intellectual property, while automated payroll processing supports over 100 currencies with one-click payments and invoicing. Compliance automation ensures adherence to international labor laws, minimizing legal risks. Employers can manage full-time employees, contractors, and freelancers from a single dashboard, improving workforce visibility. Real-time data synchronization enhances payroll accuracy, while encryption protocols ensure data privacy and regulatory compliance. Multi-language support and built-in analytics provide workforce insights, aiding global expansion strategies. The scalable infrastructure makes it ideal for startups to large enterprises navigating international hiring. Remote.com removes barriers to global employment, allowing businesses to focus on growth, innovation, and operational efficiency.
How to Choose Payroll Software in Australia
In Australia, managing payroll is not just a matter of processing employee payments; it involves navigating a complex landscape of regulations and compliance obligations. Your business must adhere to the Fair Work Act 2009, the Australian Taxation Office (ATO) requirements, and the Superannuation Guarantee (Administration) Act 1992. Each of these regulations imposes specific responsibilities on employers, including accurate tax reporting, timely superannuation contributions, and adherence to minimum wage standards. The core challenge for your business lies in selecting payroll software that not only streamlines these processes but also ensures compliance with all relevant laws to avoid costly penalties and legal repercussions.
As of 2025, approximately 70% of Australian businesses utilize payroll software to manage their payroll processes, driven largely by the implementation of Single Touch Payroll (STP) requirements by the ATO.
Key Regulations
Fair Work Act 2009
The Fair Work Act 2009 mandates that employers must pay their employees at least the national minimum wage and comply with the relevant Modern Awards. Payroll software must be capable of calculating wages according to these standards, including penalty rates and allowances. Failure to comply can result in penalties of up to AUD 63,000 for corporations and AUD 12,600 for individuals.
Single Touch Payroll (STP)
Single Touch Payroll (STP) requires employers to report payroll information to the ATO each time they pay their employees. Your payroll software must support STP reporting, including the ability to send tax and superannuation information directly to the ATO. Non-compliance can lead to penalties of AUD 1,050 for small employers and AUD 2,100 for larger employers.
Superannuation Guarantee (Administration) Act 1992
The Superannuation Guarantee (Administration) Act 1992 mandates that employers contribute a minimum percentage of an employee's earnings into their superannuation fund. Your payroll software must automate these calculations and ensure timely contributions to avoid penalties. Failure to meet superannuation obligations can result in the Superannuation Guarantee Charge, which includes the unpaid contributions plus interest and an administration fee.
Taxation Administration Act 1953
Under the Taxation Administration Act 1953, employers are required to withhold income tax from employee wages and report this to the ATO. Payroll software must facilitate accurate tax calculations and timely reporting to ensure compliance. Non-compliance can lead to significant penalties, including interest on unpaid amounts and additional fines.
Work Health and Safety Act 2011
The Work Health and Safety Act 2011 requires businesses to maintain a safe workplace, which includes proper record-keeping of employee hours and wages. Your payroll software should provide functionality to track hours worked and ensure compliance with safety regulations. Failure to comply can result in penalties of up to AUD 3 million for corporations.
What to Look For
ATO Single Touch Payroll Phase 2 certified
Your payroll software must be certified for ATO Single Touch Payroll Phase 2 to ensure compliance with the latest reporting requirements. This includes the ability to report additional employee information such as income types and employment conditions. Verify with vendors that their software is compliant to avoid penalties associated with incorrect reporting.
Automated superannuation calculations
The software must automatically calculate superannuation contributions based on employee earnings and ensure timely payments to super funds. This feature is crucial for compliance with the Superannuation Guarantee (Administration) Act 1992. Confirm that the vendor's software can handle various superannuation fund types and contribution rates.
Real-time tax calculations
Your payroll software should provide real-time income tax calculations to ensure accurate withholding amounts for employees. This feature is essential for compliance with the Taxation Administration Act 1953. Check that the vendor updates tax rates regularly and that the software can accommodate changes in tax legislation.
Compliance reporting tools
Look for software that includes built-in compliance reporting tools to generate necessary reports for the ATO and Fair Work Ombudsman. This feature helps you maintain compliance with various regulations and simplifies the audit process. Ensure the vendor can demonstrate the reporting capabilities of their software.
Integration with accounting software
Your payroll software should integrate seamlessly with your accounting software to streamline financial reporting and reconciliation. This is important for maintaining accurate financial records and ensuring compliance with tax obligations. Verify that the vendor supports integration with popular accounting platforms used in Australia.
Employee self-service portal
An employee self-service portal allows your employees to access their payslips, tax documents, and superannuation information. This feature enhances transparency and reduces administrative burden. Confirm that the vendor's software includes this capability and complies with privacy regulations.
Common mistake: A common mistake Australian businesses make when purchasing payroll software is overlooking compliance with Single Touch Payroll (STP) Phase 2. Many vendors may claim STP capability but lack the necessary certification, leading to failed submissions and potential penalties. Verify the vendor's STP Phase 2 certification status with the ATO before signing any contract to avoid costly compliance issues.
Compliance Checklist
Does the software support ATO Single Touch Payroll Phase 2?
This question is critical because compliance with STP Phase 2 is mandatory for all employers. If the vendor answers no, you risk non-compliance and potential penalties.
Can the software automate superannuation calculations and payments?
Automating superannuation calculations is essential for compliance with the Superannuation Guarantee (Administration) Act 1992. If the vendor cannot provide this functionality, your business may face penalties for late or incorrect contributions.
Does the software provide real-time tax calculations?
Real-time tax calculations ensure accurate withholding for employees, which is required under the Taxation Administration Act 1953. A negative response indicates a risk of incorrect tax reporting.
Are compliance reporting tools included in the software?
Compliance reporting tools are necessary for generating reports required by the ATO and Fair Work Ombudsman. If the vendor cannot confirm this feature, you may struggle with compliance audits.
Does the software integrate with major accounting platforms?
Integration with accounting software is crucial for accurate financial reporting. If the vendor cannot confirm compatibility, you may face challenges in maintaining accurate records.
Is there an employee self-service portal available?
An employee self-service portal enhances transparency and reduces administrative workload. If the vendor does not offer this feature, it may lead to increased administrative tasks for your HR team.
Questions to Ask Vendors
- Is your software certified for ATO Single Touch Payroll Phase 2?
- How does your software handle superannuation calculations and payments?
- What processes do you have in place for real-time tax rate updates?
- Can your software generate compliance reports for the ATO and Fair Work Ombudsman?
- What accounting software does your payroll solution integrate with?
Frequently Asked Questions
In Australia, the penalty for late payroll tax filing can vary depending on the state or territory. For example, in New South Wales, late lodgment can incur a penalty of AUD 1,000 for the first month and AUD 200 for each subsequent month. It's crucial to file on time to avoid these penalties and maintain compliance with the Taxation Administration Act 1953. Consider investing in payroll software that automates tax filing to mitigate this risk.
Yes, in Australia, your payroll software must be compliant with ATO requirements, especially for Single Touch Payroll (STP) reporting. Using ATO-approved software ensures that your business meets all reporting obligations and avoids penalties for non-compliance. Verify the vendor's compliance status with the ATO before making a purchase to ensure you are using the right tools for your business.
Payroll software in Australia must automatically calculate superannuation contributions based on employee earnings, as mandated by the Superannuation Guarantee (Administration) Act 1992. The software should also facilitate timely payments to super funds to avoid penalties. Ensure that the payroll solution you choose can manage various superannuation fund types and contribution rates effectively.
In Australia, payroll reporting requirements include compliance with the Fair Work Act 2009 and the Taxation Administration Act 1953. Employers must report employee wages, tax withheld, and superannuation contributions accurately and on time. Failure to comply can result in significant penalties, making it essential to choose payroll software that supports comprehensive reporting capabilities.
Yes, payroll software can significantly assist with compliance audits in Australia by providing built-in reporting tools that generate necessary documentation for the ATO and Fair Work Ombudsman. This functionality helps ensure that your business meets all regulatory requirements and maintains accurate records. Choose software that offers robust compliance reporting features to simplify the audit process.
When choosing payroll software in Australia, look for features that include automated tax calculations, superannuation management, compliance with Fair Work regulations, and support for multi-currency transactions if you have international employees. Additionally, ensure the software can generate necessary reports for the Australian Taxation Office (ATO) and integrate with other business systems.
The cost of payroll software in Australia can vary widely based on features and the number of users. Typically, pricing may range from AUD 10 to AUD 100 per month for small businesses, with additional costs for advanced features or larger employee bases.
Yes, many payroll software solutions in Australia offer integration capabilities with popular accounting software like Xero, MYOB, or QuickBooks. This integration helps streamline financial processes and ensures consistency in financial reporting.
Single Touch Payroll (STP) is a reporting system introduced by the ATO that requires employers to report payroll information, including salaries and superannuation, in real-time. Payroll software in Australia must be STP-compliant to automatically submit this information to the ATO after each pay run.
Yes, many payroll software solutions include features for managing employee leave entitlements, tracking leave balances, and automatically calculating leave payouts. This is particularly important for compliance with the National Employment Standards (NES) under the Fair Work Act.
Payroll software in Australia should implement robust data security measures, including encryption, secure access controls, and regular backups. Compliance with the Privacy Act and the Australian Cyber Security Centre's guidelines is also essential to protect sensitive employee data.
Implementing payroll software can improve ROI by reducing administrative costs associated with manual payroll processing, minimizing payroll errors, and ensuring timely compliance with tax obligations. Additionally, it can enhance employee satisfaction through accurate and timely payments.
Most payroll software providers in Australia offer various support options, including online help centers, live chat, email support, and phone assistance. Some providers also offer training resources or webinars to help users maximize the software's features.
Choosing between cloud-based and on-premise payroll software in Australia depends on your business needs and IT infrastructure. Cloud-based solutions offer flexibility, automatic updates, and remote access, while on-premise software may provide more control over data but requires more internal IT resources.
Yes, payroll software used for remote employees in Australia must comply with the same employment laws and tax regulations as for on-site employees. This includes proper handling of superannuation contributions, tax withholding, and adherence to any applicable awards or enterprise agreements.
What Is the Most Used Payroll Software?
Measured across the 11 country editions of this ranking, Rippling (11 of 11), Remote.com (11 of 11) and Justworks (11 of 11) have the broadest footprint. Microkeeper, HR3 Payroll and Payroo appear in Australia alone, which usually means depth in local requirements rather than breadth.
- Rippling — ranked in 11 of 11 country editions
- Remote.com — ranked in 11 of 11 country editions
- Justworks — ranked in 11 of 11 country editions
- Papaya Global — ranked in 11 of 11 country editions
- Deel — ranked in 11 of 11 country editions
- Microkeeper — ranked in 1 of 11 country editions
What Is a Cheaper Alternative to Xero?
Xero is not part of this ranking, which is scoped to payroll software in Australia and led by Rippling. Comparing Xero against a specific rival is a narrower job than ranking payroll software, and it lives on Xero's own pages where the numbers sit next to each other.
View Payroll Software by Country
Disclaimer: This research has been collated from a variety of authoritative sources. We welcome your feedback at [email protected].