Best Payroll Software in Australia 2026

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Running payroll in Australia means more than paying people on time. You need Single Touch Payroll Phase 2 reporting, superannuation calculations, PAYG withholding, and tools that match your award conditions. Below are the six best payroll platforms for Australian businesses in 2026.

Quick Comparison

Rank	Platform	Best For	Starting Price (AUD)
1	Deel	Global & distributed workforces	From $29/mo
2	Xero Payroll	Small businesses on Xero	From $33/mo
3	Employment Hero Payroll	Award & roster industries	From $19/employee
4	KeyPay	Accountants & bureaus	From $6/employee
5	QuickBooks Payroll	QuickBooks users	From $25–$40/mo
6	Payroller	Micro-businesses	Free – $8/employee

#1 Pick

Deel

Best for Global & Distributed Workforces

Deel is a cloud-based payroll and workforce management platform designed to help businesses hire, pay, and manage both employees and contractors across international borders. While it supports payroll in over 150 countries, Deel also offers Australian businesses compliant payroll processing, automated tax and benefits administration, and integrated HR workflows. It's particularly useful for companies with global teams or remote workers, consolidating payroll, compliance, and onboarding in one platform.

Starting Price

$29/mo

Best For

Global Teams

Free Trial

Key Features

Automated tax, benefits & compliance workflows across 150+ countries

Hire and pay contractors or employees in Australia and globally

Single Touch Payroll (STP) reporting readiness

Integrated HR for onboarding, contracts & reporting

Pros

Powerful global payroll and compliance engine
Centralised platform for payroll, contracts & HR
Great for regular contractor and remote hiring

Cons

Pricing is higher and more complex than local-only solutions
Can be overkill for businesses with only local payroll needs

Why We Picked It

Deel handles something most payroll tools don't: paying both local and international staff without creating extra admin or compliance headaches. If you have remote workers, contractors, or plan to hire outside Australia, Deel keeps everything — contracts, onboarding, payroll — centralised and compliant.

#2 Pick

Xero Payroll

Best for Australian Small Businesses

Founded in 2006, Xero has grown to serve millions of small businesses across Australia, New Zealand and the UK with cloud-based accounting software. Xero Payroll extends this platform to cover staff payments, superannuation, tax withholdings and STP Phase 2 compliance. Because the payroll module sits inside the same environment as your ledger, invoices and BAS preparation, it reduces complexity, duplication and errors. If you already rely on Xero for accounting, adding payroll is a natural step toward full financial integration.

Starting Price

$33/mo

Best For

Xero Users

STP Phase 2

Yes

Key Features

STP Phase 2 compliant submissions

Automated PAYG withholding & super calculations

Employee self-service for payslips, leave & timesheets

Native integration with Xero accounting & reporting

Custom pay calendars for different employee groups

Detailed payroll reports & real-time reconciliation

Pros

Strong compliance for Australian small businesses
Seamless accounting & invoicing integration
Reliable automation reduces manual data entry
Excellent reporting for audits & financial reviews
User-friendly interface for employers and employees

Cons

Limited HR and rostering compared to specialists
Pricing can add up beyond a few employees

Why We Picked It

Xero offers a truly seamless experience between accounting and payroll, with strong compliance for Australian employers (STP Phase 2) and a trusted brand in the small-business space. The integration saves time, reduces errors and helps businesses stay on top of BAS, payroll and taxes within one platform.

#3 Pick

Employment Hero Payroll

Best for Award & Roster-Based Workforces

Australian-founded Employment Hero combines payroll, HR, and employee management in one cloud platform. Its payroll system, powered by the KeyPay engine, is designed for businesses with complex staffing arrangements — hospitality, healthcare, and retail — where awards, shift penalties, and rosters need to be handled automatically. It's fully certified, supports multi-site setups, and connects with Employment Hero's full HR suite for onboarding, leave, and performance management.

Starting Price

$19/employee

Best For

Shift Workers

STP Phase 2

Yes

Key Features

STP Phase 2 compliance with automatic updates

Built-in award interpretation & pay condition rules

Shift scheduling, rostering & timesheet integration

Employee self-service via desktop & mobile app

Custom payroll & workforce analytics reports

Integrations with HR, super funds & accounting software

Pros

Handles complex modern awards with ease
Strong integration between payroll, HR & scheduling
Excellent customer service and onboarding help
Ideal for casual or rotating staff
Mobile-friendly for staff and managers

Cons

More expensive than basic payroll solutions
Interface can feel busy for smaller teams

Why We Picked It

Employment Hero stands out for combining payroll with HR, strong award interpretation, mobile self-service, and Australian compliance. Its feature set supports growing teams, varied staffing types and HR workflows that many payroll-only tools don't include.

#4 Pick

KeyPay

Best for Accountants, Bureaus & Flexible Payroll Engines

Launched in 2012, KeyPay is one of Australia's most powerful and customisable payroll engines. It's trusted by accountants, bookkeepers, and outsourcing firms for its flexibility, advanced automation, and deep compliance tools. Many well-known payroll brands — including Employment Hero — actually run on KeyPay's technology. If you need full control over automation rules, complex awards, and multiple business entities, KeyPay delivers.

Starting Price

$6/employee

Best For

Accountants

Awards Covered

100+

Key Features

STP Phase 2 compliant and certified

Automated superannuation & PAYG workflows

Award interpretation for 100+ modern awards

Fully customisable pay conditions & pay rules

Employee portal for payslips, leave & timesheets

White-label options for accountants & bureaus

Comprehensive audit trail & reporting tools

Pros

Highly flexible with advanced automation options
Ideal for multi-client or multi-entity setups
Excellent award compliance & pay rule control
Transparent per-employee pricing
Scalable for medium to large firms

Cons

Takes time to configure for complex setups
Requires external integrations for HR features

Why We Picked It

KeyPay offers deep automation, custom pay-condition engines, award interpretation and strong compliance, while being scalable and transparent in pricing. It's ideal for businesses that want to build or outsource detailed payroll workflows rather than just run a simple pay-run system.

#5 Pick

QuickBooks Payroll

Best for Businesses Already Using QuickBooks

Developed by Intuit, QuickBooks is a global leader in small business accounting — and its Australian payroll solution integrates seamlessly with the accounting platform. Powered by Employment Hero, QuickBooks Payroll is approved and tailored for Australian businesses that want payroll and accounting in one place. It's a great fit for companies already using QuickBooks Online, providing a familiar experience and automated data flow between pay runs and financials.

Starting Price

$25–$40/mo

Best For

QB Users

STP Phase 2

Yes

Key Features

Direct integration with QuickBooks Online

STP Phase 2 & super compliance

Automated pay runs with direct deposit

Flexible pay schedules for different employee types

Built-in employee self-service portal

Payroll cost & liability analytics

In-app support & step-by-step setup guidance

Pros

Perfect sync between payroll and accounting
Reduces errors & duplicate data entry
Clean, intuitive interface for non-experts
Reliable compliance & frequent updates
Excellent help resources & live chat support

Cons

Best suited for existing QuickBooks users
Advanced analytics limited to higher-tier plans

Why We Picked It

The strength lies in the seamless sync between payroll and accounting. For small businesses already inside QuickBooks, adding payroll into that ecosystem means fewer systems to manage, better accuracy, and less manual effort. It's a smart choice when your books are already there.

#6 Pick

Payroller

Best for Micro-Businesses Needing Affordable, Compliant Payroll

Payroller is an Australian-made payroll app built for micro and small businesses. It's affordable, fully approved, and incredibly easy to use — perfect for sole traders, freelancers, or small employers with only a few staff. With both desktop and mobile access, Payroller lets you process pay runs, manage leave, and send payslips in minutes. Despite its simplicity, it covers all compliance requirements including STP Phase 2, superannuation, and PAYG.

Starting Price

Free

Best For

Sole Traders

Mobile App

Yes

Key Features

Single Touch Payroll (STP Phase 2) approved

Simple guided setup for new users

Employee access to payslips & timesheets

Integrated super payments via Beam

Real-time PAYG & leave tracking

Multi-device (web, tablet, mobile) compatibility

Free plan for single-employee businesses

Pros

Excellent for startups and freelancers
Simple, intuitive — no payroll experience needed
Fast setup and minimal admin time
Affordable, with free and low-cost tiers
Mobile app makes payroll accessible anywhere

Cons

Limited scalability beyond 10–15 employees
Lacks deeper HR, analytics or award interpretation

Why We Picked It

Payroller hits the sweet spot of compliance, affordability, and simplicity. Without heavy add-ons or advanced modules, it lets very small employers stay legal and pay staff in an easy, cost-effective way.

Summary: Top 6 Payroll Software in Australia

1. Deel — Best for global & distributed workforces
2. Xero Payroll — Best for Australian small businesses
3. Employment Hero Payroll — Best for award & roster-heavy teams
4. KeyPay — Best for accountants & bureaus wanting KeyPay's engine directly
5. QuickBooks Payroll — Best for tight accounting–payroll sync
6. Payroller — Best budget-friendly STP payroll for very small teams