27 March 2026
Best Payroll Software Australia 2026
A comprehensive comparison of the best payroll software options for Australian businesses in 2026, covering features, pricing, compliance, and accountant tools.
Choosing payroll software in 2026
Australian payroll has never been more complex. STP Phase 2 expanded reporting requirements, Payday Super arrives in July 2026, and the Fair Work Commission's Annual Wage Review regularly updates Modern Award minimum rates. Choosing the right payroll software means choosing a platform that keeps pace with these changes — automatically.
This guide compares the leading payroll software options for Australian businesses in 2026, based on compliance capability, award coverage, accountant tools, and pricing.
What to look for in Australian payroll software
Before comparing products, it's worth being clear on what Australian payroll software must do:
- STP Phase 2 compliance — mandatory for all employers since 2023. Reports must include detailed income type breakdown, salary sacrifice (RESC), and closely held payee data.
- Modern Award support — Australia has 121 Modern Awards. Most SMBs operate under 5–10 key awards. Your software should calculate penalty rates, casual loadings, and overtime automatically from your employees' Award classification.
- Superannuation — 11.5% SG rate in 2025–26. SuperStream submissions for contributions, and Payday Super tracking from July 2026.
- Leave management — Annual leave, personal/carer's leave, parental leave (including KIT days), long service leave by state, and FDV leave.
- Payroll tax — Threshold and rate vary by state/territory. Businesses operating in multiple states need consolidated or per-jurisdiction reporting.
ERNVO
ERNVO is an Australian-built payroll, HR, and rostering platform designed specifically for SMBs and the accounting practices that serve them. It covers 18 key Modern Awards, includes STP Phase 2 and Payday Super readiness, and offers a dedicated Accountant Portal with Karbon and XPM integration.
Standout features: Per-organisation pricing (flat rate regardless of headcount), free plan for up to 5 employees, advisory intelligence for accounting practices, and built-in rostering with live cost visibility using Award rates.
Compare ERNVO vs Employment Hero →
Employment Hero
Employment Hero is a well-established Australian HR and payroll platform with a broad feature set including recruitment, performance management, HR, payroll, and rostering. It has a large customer base and strong brand recognition.
Strengths: Full ATS (recruitment module), performance reviews, large ecosystem of integrations.
Considerations: Per-employee pricing scales costs with headcount. Accountant portal functionality is more limited than purpose-built alternatives.
KeyPay (Employment Hero Payroll)
KeyPay was acquired by Employment Hero and is now sold as Employment Hero Payroll. It remains popular with accounting bureaus for its award coverage (22 awards) and native Xero integration.
Strengths: Broad award coverage, strong bureau tools, XPM/Xero native integration.
Considerations: Per-employee pricing. Primarily payroll-focused — HR and rostering less developed than full-platform alternatives.
MYOB Payroll
MYOB offers payroll as part of its accounting software suite. Well-suited to businesses already on MYOB accounting.
Strengths: Tight accounting integration, familiar to many Australian bookkeepers.
Considerations: Payroll-as-add-on rather than a dedicated HR platform. Award automation varies by plan.
Xero Payroll
Xero includes payroll in its accounting platform for Australian businesses. Suitable for small businesses already using Xero for their accounting.
Strengths: Seamless accounting/payroll integration, simple interface.
Considerations: Limited award automation compared to dedicated payroll platforms. Rostering and HR require third-party integrations.
How to choose
| If you... | Consider |
|---|---|
| Are a small business under 5 employees | ERNVO (free plan) |
| Are already on Xero accounting | Xero Payroll or KeyPay (Xero integration) |
| Need recruitment and performance management | Employment Hero |
| Are an accounting practice managing multiple clients | ERNVO (Accountant Portal + Karbon/XPM) or KeyPay (bureau tools) |
| Are in hospitality or retail with complex rosters | ERNVO (rostering + Award engine integration) |
Summary
The best payroll software for Australian businesses in 2026 is the one that automates your specific compliance obligations — Award rates, STP, super — without requiring manual intervention. For most SMBs, this means a platform built specifically for the Australian market, with current Award rates, STP Phase 2 support, and Payday Super readiness.
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