Best Payroll Software for Small Business Australia in 2026
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We evaluated the top payroll solutions for Australian small businesses based on compliance with Single Touch Payroll (STP) Phase 2, Modern Award handling, and pricing transparency. This ranking focuses on tools that balance automated superannuation and tax calculations with cost-effectiveness for teams ranging from solo operators to 20+ employees.
How we ranked these
At a glance
| # | Product | Score | Best for |
|---|---|---|---|
| 1 | Xero Payroll | 9.2 | Small businesses already using Xero for accounting with fewer than 10 employees |
| 2 | MYOB | 8.9 | Businesses with complex Modern Award obligations (hospitality, retail, construction) or 15+ employees |
| 3 | Employment Hero Payroll | 8.5 | Small teams seeking a low-entry-cost, cloud-first payroll solution with simple pricing |
| 4 | Deel | 8.1 | Global and distributed workforces with remote workers or international hiring needs |
Xero Payroll
9.2- Included in accounting plans (e.g., Ignite $35/mo covers 1 employee payroll)
- Native integration with Xero ledger, invoices, and BAS preparation
- Automated PAYG withholding and superannuation calculations
- Employee self-service portal for payslips, leave, and timesheets
- Award support is less deep than MYOB for complex multi-Award situations
- Pricing increases significantly beyond included headcount ($5/employee/month extra)
- Limited HR and rostering capabilities compared to specialist tools
Best for: Small businesses already using Xero for accounting with fewer than 10 employees
MYOB
8.9- Handles 120+ Modern Awards natively, ideal for complex industries
- SuperStream-compliant payments and STP Phase 2 reporting
- AccountRight Plus ($165/mo) includes payroll for unlimited employees
- Strong workflow integration between accounting and payroll modules
- Lite plan restricts payroll to a maximum of 2 employees
- Higher base cost for Lite ($26.25/mo) and Pro ($70/mo) plans compared to standalone options
- Per-employee fees ($3/employee/month) apply on Lite and Pro plans
Best for: Businesses with complex Modern Award obligations (hospitality, retail, construction) or 15+ employees
Employment Hero Payroll
8.5- Competitive starting price from $19/employee
- Cloud-based platform designed for Australian compliance
- Streamlined onboarding and contract management
- Transparent per-employee pricing model
- Pricing scales linearly with headcount, potentially expensive for large teams
- Limited native accounting integration compared to Xero/MYOB ecosystems
- Fewer advanced reporting features than AccountRight Premier
Best for: Small teams seeking a low-entry-cost, cloud-first payroll solution with simple pricing
Deel
8.1- Automated tax, benefits, and compliance workflows across 150+ countries
- Integrated HR for onboarding, contracts, and reporting
- Single Touch Payroll (STP) reporting readiness
- Centralized platform for global payroll, contracts, and HR
- Starting price from $29/mo is higher than local-only solutions
- No free trial available
- Can be overkill for businesses with only local Australian payroll needs
Best for: Global and distributed workforces with remote workers or international hiring needs
How to choose
Choose Xero Payroll if you already use Xero for accounting to leverage native ledger integration. Opt for MYOB if you need a standalone solution with strong workflow integration between separate accounting and payroll modules.
Select MYOB for businesses in hospitality, retail, or construction that require deep support for 120+ Modern Awards. Xero is better suited for simpler pay structures where complex multi-award handling is not a primary concern.
Xero Payroll offers inclusive pricing for small teams under 10 employees but costs rise significantly beyond that limit. Employment Hero provides a low entry cost per employee, while MYOB offers unlimited employee inclusion in its higher-tier plans.
Deel is the superior choice for distributed workforces requiring compliance across 150+ countries and international hiring. Local-only businesses should avoid Deel due to its higher starting price and lack of a free trial.
Our verdict
Xero Payroll is the top pick for most Australian small businesses due to its seamless accounting integration and inclusive pricing for small teams, while MYOB remains the superior choice for complex award structures.
Frequently asked questions
Which software handles complex Modern Awards best?
MYOB handles 120+ Modern Awards natively, making it more robust than Xero for multi-award environments.
Is there a free trial for Deel?
No, Deel does not offer a free trial, and its starting price is $29/mo.
How much does Xero Payroll cost for extra employees?
Xero charges $5/employee/month for each person beyond the headcount limit included in your specific plan.
Which plan is most cost-effective for 15+ employees?
MYOB AccountRight Plus at $165/mo includes payroll for unlimited employees, which is cheaper than per-employee models at scale.
