The Ultimate Guide to HR and Payroll Software in Australia

In the fast-paced world of Australian business, efficiency and compliance are more crucial than ever. Whether you're a small startup in Brisbane or a growing enterprise in Sydney, managing your workforce effectively can make or break your business success. One essential tool to help streamline operations is HR and payroll software.

In this guide, we’ll explore what HR and payroll software is, why it’s essential for Australian businesses, key features to look for, and the top solutions available in Australia today.

What Is HR and Payroll Software?

HR and payroll software is a digital solution designed to help businesses manage their human resources and payroll processes in a centralized system. It automates critical tasks such as:

Employee onboarding and offboarding
Time and attendance tracking
Payroll processing and tax calculations
Leave management
Superannuation contributions
Compliance with Fair Work and ATO regulations

For Australian businesses, where employment laws and tax regulations are strict and frequently updated, choosing the right software is not just helpful—it’s essential.

Why Do Australian Businesses Need HR and Payroll Software?

1. Compliance with Local Laws

Australia’s payroll landscape is complex. Businesses must comply with the Fair Work Act, Modern Awards, Single Touch Payroll (STP) requirements, and superannuation obligations. Good HR and payroll software ensures automated compliance updates to keep you penalty-free.

2. Save Time and Reduce Errors

Manual payroll processing can lead to mistakes in tax calculations or underpayments. Automation minimizes human errors and frees up your HR team to focus on strategic initiatives.

3. Employee Satisfaction

Timely and accurate payroll improves employee trust. Integrated HR features like self-service portals, leave requests, and digital payslips also enhance employee engagement.

4. Scalability

From hiring your first employee to managing a large workforce, modern payroll software in Australia scales with your business growth.

Key Features to Look for in HR and Payroll Software in Australia

When choosing a solution tailored for Australian businesses, prioritize these features:

STP Compliance

Single Touch Payroll reporting is mandatory in Australia. Make sure the software is STP Phase 2 compliant and integrates with the ATO.

Superannuation Integration

Look for automated superannuation contributions, including auto-calculation based on award or enterprise agreement requirements.

Leave and Award Interpretation

Australian leave laws vary by state and role. Your software should support automatic award interpretation, sick leave tracking, long service leave, and more.

Employee Self-Service (ESS)

Let employees manage their own personal information, payslips, leave requests, and tax file declarations via a user-friendly portal or mobile app.

Time and Attendance Tracking

Built-in timesheet, rostering, and attendance tools are vital for both compliance and productivity tracking.

Reporting and Analytics

Gain actionable insights with customizable payroll, compliance, and HR reports. Great for audits and performance reviews.

Top HR and Payroll Software in Australia (2025 Edition)

Here are some of the best-rated HR and payroll software platforms for Australian businesses:

1. Employment Hero

Best for: Small to medium businesses (SMBs)

Offers cloud-based HR, payroll, and benefits in one solution
Fully STP-compliant and integrated with ATO
Handles automated award interpretation
Includes employee self-service, onboarding, and performance reviews
Superannuation and leave tracking features
Integrates with Xero, MYOB, and QuickBooks

Pricing: Starts around $8 per employee/month

2. Xero Payroll

Best for: Businesses already using Xero for accounting

Seamless integration with Xero accounting
STP-compliant and ATO integrated
Super payment processing with Auto Super
Leave management, pay run automation
Simple, intuitive interface

Pricing: Included in Xero Business plans from $32/month

3. KeyPay (now part of Employment Hero)

Best for: Businesses needing deep award interpretation

Powerful cloud payroll platform built for Australia
Detailed award compliance engine
Flexible rostering, time tracking, and shift costing
White-label option for accountants and payroll bureaus
Automates superannuation, PAYG, and STP reporting

Pricing: From $4 per employee/month

4. MYOB PayGlobal and MYOB Essentials Payroll

Best for: Growing businesses and enterprises

Local Australian provider with a long history
Fully STP-compliant
Offers single-touch payroll for up to 2000+ employees
MYOB Essentials ideal for small businesses
Deep integration with accounting and reporting tools

Pricing: Varies based on business size and needs

5. ADP Payline

Best for: Large enterprises

Global HR and payroll software with local Australian compliance
Multi-country payroll processing
Employee self-service portals
Advanced analytics and HR reporting
STP Phase 2 compliant

Pricing: Custom quote required

6. Zoho People + Zoho Payroll

Best for: Businesses already in the Zoho ecosystem

Easy integration with Zoho suite (CRM, Books, etc.)
Cloud-based HR management with leave, timesheet, and attendance tracking
Zoho Payroll is STP-compliant and includes ATO sync
Affordable for small businesses

Pricing: From $3/month per employee for Zoho People

Factors to Consider When Choosing HR and Payroll Software

Before committing to a software provider, ask the following:

Is the software regularly updated to reflect Australian law changes?
Does it integrate with your existing accounting or HR systems?
How responsive is customer support?
Is there local support available in your time zone?
Can you try a free demo or trial period?
What are other Australian businesses saying in reviews?

HR and Payroll Trends in Australia (2025)

The HR and payroll landscape continues to evolve. Here are key trends shaping the future:

AI-Powered Automation

AI is being used to detect anomalies in payroll data, predict turnover, and improve compliance monitoring.

Mobile-First Workforce

More platforms now offer mobile apps for payroll approvals, leave requests, and onboarding.

Focus on Employee Wellness

Modern platforms are including tools for employee engagement, mental health check-ins, and benefits tracking.

Increased Outsourcing

Many businesses are outsourcing payroll management to software providers or bureaus to reduce administrative burden.

Final Thoughts

Choosing the right HR and payroll software in Australia is a critical decision for any business aiming to stay compliant, efficient, and employee-focused. Whether you’re looking for a basic payroll solution or an all-in-one HR management system, there are fantastic Australian-made and international options that fit every need and budget.

Don’t forget to consider trialing a few platforms before making your choice—many offer free trials or demos to help you decide. With the right software, you’ll gain time, accuracy, and peace of mind, letting you focus more on growing your business and supporting your team.

FAQs

1. What is STP and why does it matter?

Single Touch Payroll (STP) is an Australian government initiative requiring employers to report payroll and superannuation data to the ATO in real-time. Compliance is mandatory for all businesses.