Best Payroll Software for Australian Small Businesses (2026 Guide)

Introduction

Payroll is one of the most complex and compliance-heavy responsibilities for Australian small businesses. Between calculating wages, managing superannuation, handling leave entitlements, and meeting Single Touch Payroll (STP) requirements, mistakes can quickly become costly.

The right payroll software for Australia can automate calculations, reduce admin time, and ensure compliance with Fair Work awards and ATO reporting rules. For small business owners, this often means fewer errors, less stress, and more time to focus on growth.

In this 2026 guide, we compare the best payroll software for Australian small businesses, focusing on compliance, ease of use, pricing in AUD, and integration with accounting platforms. If you’re also reviewing your finance stack, see: Best Accounting Software for Small Businesses in Australia .

Quick Comparison: Payroll Software for Australia (2026)

Software	Starting Price (AUD)	STP Compliance	Best For	Rating
Xero Payroll	Included with Xero	Yes	Xero users & SMEs	⭐ 4.8 / 5
MYOB Payroll	~$30 / month	Yes	Award-heavy businesses	⭐ 4.7 / 5
QuickBooks Payroll	~$20 / month	Yes	Sole traders & small teams	⭐ 4.6 / 5

Best Payroll Software for Australian Small Businesses

1) Xero Payroll — Best Overall Payroll Solution

Xero Payroll is a top choice for Australian small businesses already using Xero for accounting. It int