The 25 best payroll software options in 2026 for Australian businesses

Payroll is one area where small mistakes can have big consequences. In Australia, you need to pay people correctly, as well as meet strict rules around STP Phase 2 reporting, superannuation, PAYG withholding, and award interpretation. 

If compliance slips, you’re looking at ATO penalties and damaged trust with your team. And as AI starts showing up across the payroll category, the gap between basic STP-compliant tools and platforms doing the heavy lifting for you is widening.

To compare the best options on the market, I reviewed and scored 25 of the leading platforms against six factors: Australian payroll compliance, features, support, pricing, scalability, and user satisfaction. Each tool got a weighted score, with Rippling rated the best payroll software in Australia.

Here’s an overview of my findings. If you’d like to see the complete list and how I calculated the scores, you can view the full breakdown of my research in this spreadsheet here.

The 11 best payroll software options in Australia

Now that we’ve looked at all 25 options, it’s time to zoom in on the 11 payroll platforms worth your attention. In this deeper dive, I’ll outline what makes each one stand out, where they may fall short, and how to decide if they’re the right fit for your business.

1. Rippling

Rippling combines HR, IT, compliance, and global payroll in one platform, making it one of the most versatile options on the market. 

What puts Rippling at the top of this list is its ability to replace multiple systems without adding complexity. Unlike many competitors, it balances strong Australian compliance with global scalability, making it a genuine all-in-one solution for both local and growing businesses. Rippling AI sits across the platform too, so you can do things like spot overtime trends, add one-off bonuses to a pay run, or surface approval bottlenecks before they delay payroll, without leaving the system.

Starting price: $12 AUD per employee, per month.

Source: Rippling

Why do companies choose Rippling?

"Rippling makes it simple to manage everything HR and payroll-related in one place. The platform is very intuitive, onboarding is smooth, and the automation saves a lot of time compared to handling tasks manually.” - Rippling Capterra review.

User-flagged challenges 

• Modular pricing can make total costs hard to predict upfront

• No live phone support during Australian business hours

• The learning curve can be steep for teams migrating from simpler systems

Is Rippling right for your business?

Rippling is a great option if you want an easy-to-navigate, modern platform that handles both Australian compliance and global payroll without bouncing between tools. It’s best for businesses that are growing fast, hiring across borders, or wanting AI to take admin off the team’s plate.

Automate your pay runs, stay compliant and pay employees globally in as little as 90 seconds.

See Rippling

2. Employment Hero

Employment Hero is a locally built HR and payroll platform designed specifically for Australian businesses. It’s part of their broader HR suite, which also covers onboarding, engagement, and benefits, making it more than just payroll software.

Employment Hero balances compliance and usability nicely. By automating award interpretation and integrating directly with Xero and QuickBooks, it can help businesses stay compliant while simplifying day-to-day HR tasks.

Starting price: $20 AUD per employee, per month, with a $200/month minimum spend on the Lite plan.

Source: Employment Hero

Why do companies choose Employment Hero?

“The platform is user-friendly and makes managing HR tasks much more efficient, from payroll to employee management. I especially appreciate the self-service features, which empower employees to manage their own information and requests.” - Employment Hero Capterra review.

User-flagged challenges 

• Initial setup can be time-consuming, especially when migrating from multiple systems

• Some features are less intuitive to navigate

• Customer support response times can be slow during busy periods

Is Employment Hero right for your business?

Employment Hero is a good fit if you want an all-in-one HR and payroll system that simplifies everyday admin and gives employees more control through self-service tools. However, if you need fast, hands-on support or you’re migrating from multiple older systems, be prepared for setup to take longer.

3. ClockOn

ClockOn is an Australian payroll system that brings rostering, time and attendance, and payroll together in one platform. It includes built-in award interpretation and STP Phase 2 compliance, and gives staff access via a mobile app. Businesses can also choose between cloud and on-premise deployment.

What makes ClockOn stand out is its workforce management focus. Features like shift costing and rostering visibility make it a strong fit for hospitality, healthcare, and retail.

Starting price: Free for the first 12 months or 27 STP submissions (whichever comes first), for businesses with up to 20 employees. Paid plans apply after that.

Source: ClockOn

Why do companies choose ClockOn?

“The initial set up and follow up was very good and I can not give the staff concerned enough praise. I like the ease of reporting wage information to the Government.” - ClockOn Capterra review.

User-flagged challenges 

• Some users report slow loading times and issues with the mobile app

• Limited reporting options, especially for verifying STP submissions with the ATO

• The interface can feel dated, and customisation options are limited

4. Roubler

Like ClockOn, Roubler is an Australian workforce management platform built for shift-based industries like retail, hospitality, and healthcare. 

It combines onboarding, rostering, time and attendance, and payroll in one platform, with built-in STP Phase 2 compliance and award interpretation. Employees can also clock in, view rosters, and access payslips through a mobile app.

Starting price: Pricing on request.

Source: Roubler

Why do companies choose Roubler?

“Overall really good, saved heaps of money by replacing a few different systems to using just one. I no longer need to do payroll as they manage that all for me.” - Roubler Capterra review.

User-flagged challenges 

• The employee app can be buggy or laggy at times

• Holiday management features cause issues for some teams

• Support responses can be inconsistent depending on the problem

5. Xero

Xero is one of Australia’s most popular accounting platforms, and its payroll add-on makes it especially appealing for small businesses that want everything in one place. 

What makes Xero stand out is its simplicity. Business owners, bookkeepers, and accountants can all collaborate in real time, and payroll data flows straight into financial reports. For sole traders, micro-businesses, and growing SMBs, it’s a good way to manage simple payroll.

Starting price: $35 AUD per month.

Source: Xero Payroll

Why do companies choose Xero?

“We are very happy with Xero, it offers us everything that we need for a small business. It is very visual and intuitive and constantly being updated with new and better features.” - Xero Capterra review.

User-flagged challenges 

• Lower-tier plans cap the number of employees, so growing teams hit overage fees fast

• Payroll setup can be tricky, particularly for AU and NZ compliance

• Limited reporting depth compared to specialist payroll tools

6. MYOB Payroll

MYOB is a long-standing name in Australian accounting, and its payroll solution is built directly into the same platform. For small businesses already using MYOB for bookkeeping, the integration makes it simple to run payroll, stay compliant, and manage employee records in one place.

Starting price: $12 AUD per month for up to four employees. New customers may be eligible for a $9/month promotional rate for 24 months.

Source: MYOB

Why do companies choose MYOB?

“The financial reporting abilities of MYOB Business are very good and very well developed. They present accurate and real time reports that allow for a large volume of information to be automatically reported from a business management point of view.” - MYOB Capterra review.

User-flagged challenges 

• The interface can feel dated compared to newer cloud-native tools

• Customer support can involve long wait times during busy periods

• Advanced features may require additional setup or paid upgrades

7. QuickBooks Payroll

QuickBooks Payroll is part of their broader accounting platform, designed to give small businesses an easy way to run payroll alongside their bookkeeping. The Australian payroll engine itself is powered by Employment Hero.

QuickBooks Payroll’s appeal is its simplicity and tight integration with QuickBooks Online, making it a natural fit for businesses already on that system. It also offers flexible plans for small to mid-sized teams.

Starting price: $6 AUD per employee, per month.

Source: QuickBooks

Why do companies choose QuickBooks Payroll?

“Easy to use after initial setup with good customer support available by phone. Initial free 1 hour training sessions provided when signing up. More affordable than other accounting software programs.” - QuickBooks Capterra review.

User-flagged challenges 

• Limited award interpretation compared to specialist payroll providers

• Customer support can be inconsistent, especially during peak times

• Pricing can get expensive as team sizes increase

8. Microkeeper

Microkeeper is an Australian payroll and workforce platform that integrates rostering, time and attendance, and payroll into one system. It’s designed to simplify award compliance and provide accurate attendance tracking through biometrics.

Starting price: $2.25 AUD per user, per month.

Source: Microkeeper

Why do companies choose Microkeeper?

“I've been using Microkeeper for my growing not-for-profit, with numerous departments, and rather quirky pay rate rules, etc. And Microkeeper has been such a time saver. What used to take me up to an hour with 8 employees now takes me less than 20 minutes.” - Microkeeper Capterra review.

User-flagged challenges 

• Biometric time tracking can feel intrusive for some employees

• Its tracking raises privacy concerns for employees

• Interface feels less modern compared to newer competitors

9. Humanforce

Humanforce is built for mid-sized and enterprise organisations with large, shift-based workforces. Its strengths are in industries like hospitality, retail, and healthcare, where managing rosters, time and attendance, and payroll in one system saves admin time.

Starting price: Pricing on request.

Source: Humanforce

Why do companies choose Humanforce?

“Rostering staff looked aesthetically good and easy to follow. Building rosters was quite simple.” - Humanforce Capterra review.

User-flagged challenges 

• Support can be inconsistent, with tickets left unresolved for long periods

• Platform performance can lag or crash when handling larger data loads

• The interface feels outdated compared to newer competitors

10. ReadyTech (Ready Workforce)

ReadyTech is a payroll and workforce management platform designed for mid-to-large organisations across sectors like government, education, and corporate. It combines payroll, HR, and rostering with Australian compliance built in, making it suitable for complex workforce structures.

Starting price: Pricing on request.

Source: ReadyTech

Why do companies choose ReadyTech?

“I have to say the best thing about RT is their approach to Customer Success. They go out of their way to help, offer solutions and ensure you have what you need.” - ReadyTech G2 review.

User-flagged challenges 

• Set up and award interpretation may take time and training

• Limited to AU/NZ compliance with no global payroll features

• Real-time monitoring tools (like geo-tracking and detailed attendance logs) can feel intrusive for staff

11. ELMO Payroll

ELMO is an Australian-owned HR and payroll platform that combines payroll, recruitment, onboarding, and performance management in one system. 

It’s designed for mid-sized businesses that want an all-in-one HR platform with strong compliance for Australia and New Zealand.

Starting price: Pricing on request.

Source: ELMO

Why do companies choose ELMO?

“Overall I have enjoyed using Elmo, there seems to be a big shift towards user engagement which has been very positive and they are open to feedback.” - ELMO Capterra review.

User-flagged challenges 

• Some features are outdated or buggy, with parts relying on legacy frameworks

• Customer support and implementation can be slow or frustrating

• Limited transparency around pricing before signing contracts

What should I consider when choosing payroll software?

If you’ve read through all the functions and features but still aren’t sure what your business actually needs, think about how the platform fits your wider business goals. Here are eight key factors to help you decide.

1. Compliance: STP, Fair Work, and award interpretation

For many Australian businesses, software with built-in ATO compliance is non-negotiable. Look for STP Phase 2 reporting, award interpretation, and Payday Super readiness. 

Even small mistakes can lead to big fines, so compliance should be a top priority when making your choice.

2. Pricing transparency

Payroll costs can add up. Make sure to compare per-employee pricing against flat monthly fees, and check what’s included in each tier. 

Many providers hide advanced features like award interpretation or onboarding behind higher-tier plans. Make sure you know exactly what you’re paying for before you sign up. 

3. Ease of use for staff

Most employees want direct access to their payroll, leave balances, and benefits. Look for platforms with self-service options that let staff check things without needing to reach out to HR or the finance team. 

4. Support availability

When something breaks, you’ll want quick support. Check whether vendors offer local Australian support hours and live support, or ticket systems and chatbots. Delayed support can mean late pay runs, which negatively affect your staff.

5. Integration with existing tools

Make sure the system you choose integrates with your accounting software (Xero, MYOB, QuickBooks). Clean integration prevents double data entry, saves admin time, and reduces reconciliation errors.

6. Scalability for growth

What works for a 10-person team may not suit 200 employees. Some platforms scale with multi-entity, global payroll, or advanced workforce management features, while others are designed purely for local SMBs. If you know you want to grow, choose a tool that you won’t need to replace in a couple of years.

7. Employee monitoring and privacy

Some platforms include time tracking, geolocation, or biometric logins. While these can reduce time fraud, they can also feel intrusive and chip away at trust with your team. Decide early how much monitoring you want in your system, and check how the software handles employee data.

8. AI and automation

AI is starting to show up across payroll software, but the depth varies a lot. Some platforms have bolted on a chatbot. Others, like Rippling, run AI across the whole system, so it can answer employee pay questions, flag overtime trends, or push routine admin through without manual clicks. Worth asking what each vendor's AI actually does day-to-day, not just what's on the marketing page.

Your business is complex. Payroll software shouldn’t be.

See Rippling

Payroll compliance focus areas in 2026

A handful of changes are reshaping what Australian payroll teams need to plan for in 2026. Here are the key shifts to keep on your radar, plus the rules that have already kicked in but still need attention.

Payday Super

Payday Super requires employers to pay superannuation at the same time as wages, instead of quarterly. The change takes effect from 1 July 2026 and is designed to help workers grow their savings faster, while making it easier for the ATO to spot underpayments.

In practice, that means super firing every pay run instead of four times a year. Choosing software that's already ‘Payday Super ready’ will make the transition smoother.

Income tax cut

The tax rate on income between $18,201 and $45,000 drops from 16% to 15% from 1 July 2026. It's a small change on paper, but it means PAYG withholding tables and any custom payroll templates need updating from that date.

Paid Parental Leave expansion and super contributions

From 1 July 2026, the government-funded Paid Parental Leave scheme reaches its full 26-week length. The first super contributions on PPL (for parents of children born or adopted from 1 July 2025) will also be paid from July 2026.

Employers don't need to process the super contributions, the ATO handles them. But HR teams should update parental leave policies so staff understand how the new entitlements work.

The right to disconnect

The Right to Disconnect is a workplace law that gives employees the ability to ignore unreasonable work contact outside their normal hours. This can be calls, emails, or instant messages. It doesn’t ban all after-hours communication, but it does mean staff can say no if the request is unreasonable.

As of August 2025, the rule applies to all Australian businesses. For payroll and HR teams, it’s important to update rosters, on-call arrangements, and policies so staff know when they’re expected to respond and when they’re not.

Criminalisation of wage theft

Since 1 January 2025, deliberate wage theft has been a criminal offence under the Fair Work Act. It was introduced after years of high-profile underpayment cases in industries like hospitality and retail, where staff were missing out on entitlements due to deliberate or repeated non-compliance.

For employers, this raises the stakes on payroll accuracy. Software that applies the right award rates and entitlements helps reduce the risk of mistakes.

Payroll software that grows with your business

A great payroll system does more than just processing payslips on time. It cuts compliance risk, saves hours of unnecessary admin, and builds trust by always paying your employees the correct amount, on time. Once you have a good system in place, your finance team can spend more time on strategic growth instead of chasing errors.

There’s a platform to suit every type of business, from simple tools for small teams to specialist software for award-heavy industries. 

If you’re still looking for one system that combines payroll, HR, IT, and compliance, and supports you as you expand into new markets, Rippling is the platform that brings it all together.

Want to see it in action? Book your free demo today.

FAQs