Getting payroll right isn't optional in Australia — it's a legal obligation. Between Single Touch Payroll (STP) Phase 2 reporting, superannuation guarantee calculations, Fair Work award interpretation, and ATO compliance, Australian payroll is uniquely complex. The right software takes this burden off your shoulders and ensures every pay run is accurate, compliant, and on time.
We've compared the five best payroll solutions for Australian businesses in 2026. Every platform below supports STP Phase 2, calculates and manages superannuation, and integrates with the ATO. Here's how they stack up.
Quick Comparison
| Feature | Xero Payroll | MYOB Payroll | KeyPay | Employment Hero | Wage Easy |
|---|---|---|---|---|---|
| Starting Price (AUD/mo) | Included* | $10 add-on | $4/employee | Free / $8/employee | $30 base |
| STP Phase 2 | ✓ | ✓ | ✓ | ✓ | ✓ |
| Super Management | ✓ | ✓ | ✓ | ✓ | ✓ |
| ATO Integration | ✓ | ✓ | ✓ | ✓ | ✓ |
| Award Interpretation | ✗ | ✗ | ✓ | ✓ | ✓ |
| Leave Management | ✓ | ✓ | ✓ | ✓ | ✓ |
| Employee Self-Service | ✓ | ✓ | ✓ | ✓ | ✓ |
| HR Features Built-in | ✗ | ✗ | ✓ | ✓ | ✗ |
| Our Score | 9.0/10 | 8.5/10 | 9.2/10 | 8.7/10 | 7.8/10 |
*Xero Payroll is included in Standard ($49/mo) and Premium ($78/mo) plans.
KeyPay is the gold standard for Australian payroll — purpose-built for the complexities of our system. Its standout feature is automated award interpretation: KeyPay has built-in rules for over 30 modern awards, automatically calculating penalty rates, overtime, allowances, and shift loadings based on the relevant award. For hospitality, retail, or any business with shift workers, this alone is worth the price of admission.
KeyPay handles STP Phase 2 reporting seamlessly, manages superannuation calculations and payments through its built-in clearing house, and integrates directly with the ATO. It also offers robust rostering, timesheets, leave management, and employee self-service. Integration with Xero, MYOB, and QuickBooks means your payroll flows straight into your accounting.
Pros
- Best automated award interpretation in Australia
- STP Phase 2 compliant
- Built-in super clearing house
- Excellent rostering and timesheets
- Integrates with Xero, MYOB, QuickBooks
Cons
- No accounting features — payroll only
- Interface can feel complex initially
- Per-employee pricing adds up for large teams
- Setup requires understanding of awards
Best for: Businesses with shift workers, complex awards, or multiple pay rates — especially hospitality, retail, healthcare, and construction.
Visit KeyPay →If you're already using Xero for accounting — and most Australian small businesses are — then Xero Payroll is the natural choice. It's built right into your Xero subscription (Standard or Premium plans), so there's no separate platform to manage. Pay runs flow directly into your accounting, keeping everything reconciled automatically.
Xero Payroll handles STP Phase 2 reporting, calculates and tracks superannuation, manages leave balances, and produces payslips. Employees get self-service access to view payslips, submit leave requests, and update their tax declarations. For straightforward payroll — salaried staff, simple award structures — Xero Payroll does everything you need without adding complexity.
Pros
- Seamlessly integrated with Xero accounting
- No extra cost on Standard/Premium plans
- STP Phase 2 compliant
- Employee self-service portal
- Super calculation and tracking
Cons
- No automated award interpretation
- Limited rostering and timesheet features
- Requires Xero Standard ($49/mo) minimum
- Less suited for complex shift-based payroll
Best for: Small businesses already on Xero who need simple, integrated payroll without a separate system.
Visit Xero →Employment Hero is an Australian-built platform that combines HR and payroll in one system. Founded in Sydney, it's designed specifically for Australian compliance — Fair Work, STP Phase 2, super, modern awards, and leave entitlements are all baked in. If you want one platform for both people management and payroll, Employment Hero is the strongest option.
The payroll module handles automated pay runs, STP Phase 2 reporting, super payments, and award interpretation for common awards. The HR side adds onboarding, document management, performance reviews, and an employee self-service app called Swag — which also gives employees access to financial wellness tools, discounts, and on-demand pay (InstaPay).
Pros
- Combined HR and payroll in one platform
- Australian-made, designed for local compliance
- Award interpretation for common awards
- Employee app with financial wellness features
- Onboarding, performance reviews, and more
Cons
- Can be expensive per-employee for larger teams
- Payroll less flexible than KeyPay for complex awards
- Interface can feel cluttered
- Setup takes time to configure fully
Best for: Australian businesses wanting an all-in-one HR and payroll platform with strong local compliance.
Visit Employment Hero →MYOB's payroll module is one of the most established in Australia. Available as an add-on to MYOB Business plans, it handles STP Phase 2 reporting, superannuation management (with MYOB's own super portal), leave tracking, and payslip generation. Like Xero, the payroll flows directly into your MYOB accounting, keeping everything in sync.
MYOB's key advantage is its Australian phone support — when payroll goes wrong (and at some point, it will), being able to call someone in Australia who understands STP, super, and Fair Work is invaluable. MYOB also offers a dedicated payroll-only product for businesses that don't need full accounting.
Pros
- Deeply integrated with MYOB accounting
- Excellent Australian phone support
- STP Phase 2 compliant
- MYOB super portal for payments
- Long-established, trusted by accountants
Cons
- No automated award interpretation
- Interface feels dated
- Limited rostering features
- Requires MYOB accounting for best experience
Best for: Businesses already on MYOB who want integrated payroll with reliable Australian phone support.
Visit MYOB →Wage Easy is a specialist Australian payroll solution designed for businesses with complex payroll needs — think construction, mining, healthcare, and aged care. It handles intricate award interpretation, EBA (Enterprise Bargaining Agreement) calculations, multiple pay rates, allowances, and deductions with precision that general-purpose platforms can't match.
Wage Easy supports STP Phase 2, manages super through multiple clearing houses, and integrates with Xero and MYOB for accounting. It also handles portable long service leave (important in construction and cleaning), workers' compensation calculations, and PAYG payment summaries. It's not the prettiest platform, but it's thorough.
Pros
- Handles highly complex award and EBA structures
- Portable long service leave support
- Workers' compensation calculations
- STP Phase 2 compliant
- Australian-built and supported
Cons
- Interface is dated and clunky
- Overkill for simple payroll needs
- Steeper learning curve
- Less modern than cloud-native competitors
Best for: Businesses with complex awards, EBAs, or industry-specific payroll requirements — construction, mining, healthcare, aged care.
Visit Wage Easy →Understanding Australian Payroll Requirements
Australian payroll is more complex than many business owners realise. Here are the key requirements your payroll software must handle:
- Single Touch Payroll (STP) Phase 2: Every pay run must be reported to the ATO in real time, with detailed breakdowns of gross pay, allowances, overtime, deductions, and leave. All five platforms above support this.
- Superannuation Guarantee: Currently 11.5% of ordinary time earnings (rising to 12% on 1 July 2026). Your software should calculate this automatically and support electronic payment to super funds.
- Fair Work compliance: Minimum wages, award rates, penalty rates, overtime, and leave entitlements must be calculated correctly. Automated award interpretation (available in KeyPay, Employment Hero, and Wage Easy) reduces the risk of underpayment.
- Leave management: Annual leave, personal/carer's leave, long service leave, and other entitlements must be accurately tracked and accrued.
- PAYG withholding: Tax must be withheld from employee wages and reported to the ATO through STP.