Independent guideAll prices in AUDPrices checked

Best HR Software for Small Business in Australia (2026)

For most Australian small businesses the best HR software is Deel, because Deel HR is free for up to 200 employees, so a small team gets a real HRIS with records, onboarding and leave tracking at no cost. Connecteam is the pick for a deskless or shift-based team, free for life up to 10 employees and $49 a month beyond that. Employment Hero is the strongest all-in-one for Australian compliance and onboarding, at $10 an employee a month once your team clears its $100 a month minimum.

Independent guide by MerchantCompare. How we compare

Our top picks for small business

1Best free HR system for most small businesses
Deel logo

Deel

4.8G2Free up to 200

Deel HR is a genuine HRIS, employee records, onboarding, time off and org charts, and it is free for up to 200 employees, which is well beyond what most small businesses will ever need. That makes it the easy default: you get structured HR without a monthly bill, and only pay ($7 an employee a month) if you grow past 200 or add Deel's global hiring and payroll on top.

  • Free HRIS up to 200 employees, no monthly base fee
  • Onboarding, time off, documents and org charts included
  • Grows into global contractor and Employer of Record hiring if you need it

Watch out: It is a lighter HR tool than an Australian-native platform, with no built-in Modern Award interpretation.

2Best all-in-one for Australian compliance
Employment Hero logo

Employment Hero

4.4Capterra$10/emp/mo (HR Essentials)

Employment Hero is the most complete Australian HR platform here: onboarding, contracts, policies, employee files, performance and self-service in one system built for local employment law. It charges $10 an employee a month with a floor of about $100 a month, so it earns its place once you have enough staff to spread that minimum, or need HR and payroll deeply joined up.

  • Australian-built, with local employment and Fair Work context throughout
  • Onboarding, contracts, policies and performance in one place
  • Pairs with its own strong payroll and Modern Award interpretation

Watch out: The roughly $100 a month minimum makes it dear for a team of two or three.

3Best for deskless and shift-based teams
Connecteam logo

Connecteam

4.6GetApp$0.84/user/mo above 30 users (HR & Skills Hub, Basic)

Connecteam is built for teams that do not sit at a desk: hospitality, retail, trades and care. Its Small Business plan is free for life for up to 10 employees, covering scheduling, time tracking, checklists and team chat, and the paid HR hub starts at $49 a month covering your first 30 users. For a small hourly workforce it does the day-to-day people admin the office-first tools ignore.

  • Free for life for up to 10 employees
  • Scheduling, time clock and communication built for hourly teams
  • Flat $49 a month covers the first 30 users on the paid HR hub

Watch out: It is an operations-first tool, so it is a weaker fit for salaried, office-based HR than Employment Hero.

Compare the picks at your numbers

Enter your business details to see what each option would cost you. Prices are live from our database and shown in Australian dollars.

3 ProvidersDeel logoDeelEmployment Hero logoEmployment HeroConnecteam logoConnecteam
Est. Cost /mo (AUD)$0/moCheapest$100/mo$49/mo
Ratings
4.8G2 (13,922)4.4Capterra (239)4.6GetApp (5,298)
Costs & Pricing
Per-employee (no minimum)Per-employee with monthly minimumPer hub: flat for the first 30 users, then per user
Free up to 200$10/emp/mo (HR Essentials)Best$0.84/user/mo above 30 users (HR & Skills Hub, Basic)
$0$0$49/mo (HR & Skills Hub, Basic, covers the first 30 users)
None$100/mo$49/mo (Basic hub fee)
NoNoNo
Yes (Deel HR free)NoYes
$835/emp/mo
HR & Compliance
Yes (global)Yes (AU-built)Not stated
NativeNativeXero, MYOB, QBO
YesYesNo (via integration)
YesYesYes
YesYesYes
YesYesYes (Operations Hub)
YesYes (Plus+)Limited
YesYesYes
Yes (global)Yes (AU Fair Work)Limited
AI
Native + add-ons (Deel AI, Akai agents)Native (Hero AI: SmartMatch)Native (AI course creator)
Native MCP (official)Via 3rd-party (Zapier)API only (Expert and above)
Features & Integrations
YesYesYes
YesYes (Plus+)No
LimitedYes (Unlimited)Yes
YesYesYes
Xero, QBO, NetSuite, SAPXero, MYOB, QBO, SlackXero, MYOB, Zapier
YesYesYes
24/7 chat + emailBusiness hours AU24h chat, email
Estimates based on $15,000/mo volume. Rates can change without notice, confirm current pricing with the provider before signing on.
How we calculate this
  • Estimated cost: each provider’s published prices and rates applied to the inputs you set above (such as volume, team size, or invoices), plus any fixed monthly fees.
  • Providers with an incomplete cost (shown as “+ processing”) and quote-only providers are never ranked as the cheapest while a complete-cost option exists. A “+ payroll” tag means payroll is not built in, so you would run it on separate software; those providers are still ranked on cost, and you can hide them with the Payroll included filter.
  • These are estimates. Published rates can change and your final pricing depends on your business, so confirm current pricing with the provider before switching.

Small business HR software is about getting the people admin, employee records, onboarding, leave and documents, off spreadsheets and email, without paying for an enterprise system you will not use. The good news for a small Australian business is that the entry point is genuinely cheap, and in two cases free. Below are our ranked picks, then a live comparison table and calculator so you can cost each at your own headcount.

How we chose

Small businesses weigh HR software on cost first, then on how much of the real work it takes off your plate: onboarding a new hire, tracking leave, storing employee documents and staying on the right side of Australian employment obligations. We ranked on the real monthly cost once you count employees and any minimum, the depth of core HR (records, onboarding, time off, self-service), fit with Australian employment practice, and how well the tool suits your kind of workforce, desk-based or deskless. Pricing is live from our database in Australian dollars.

What small businesses should prioritise

Start with the shape of your team, because it decides the answer more than any feature list. A small office-based team is best served by a proper HRIS, and Deel HR gives you that free to 200 employees, so there is little reason to pay at small scale. A deskless or shift-based team, hospitality, retail, trades, care, has different needs, rostering and a mobile time clock, and Connecteam is built for exactly that. Employment Hero is the one to reach for when Australian compliance depth matters most, but read its minimum: at about $100 a month it is priced for a growing team, not a founder plus one. Cost the tool at the headcount you expect in a year, not the one you have today.

Free HR software, and what the free tiers actually cover

Two of these picks are free, and it is worth being clear on what that buys. Deel HR free to 200 employees is a full HRIS: records, onboarding, time off, documents and org charts, with no monthly base fee. Connecteam's free plan, up to 10 employees, is an operations tool: rostering, a time clock, checklists and chat, rather than a records-first HRIS. Both are genuine ongoing plans, not trials. The paid step only arrives when you outgrow the cap, past 200 employees on Deel, or past 10 on Connecteam, where the HR hub is $49 a month for your first 30 users.

The verdict

For most Australian small businesses, Deel is the default: a real HR system, free to 200 employees, with room to grow into global hiring later. Choose Connecteam if your team is deskless or shift-based and you need rostering and a time clock more than a records system. Choose Employment Hero when Australian compliance depth and a tightly joined HR-and-payroll platform matter, and your team is large enough to absorb its roughly $100 a month minimum. Use the calculator above to cost each at your employee count.

Running payroll too?

HR software and payroll overlap but are not the same purchase. If you also need to run pay, lodge Single Touch Payroll and interpret Modern Awards, see our guide to the best payroll software for small business, where Employment Hero and the accounting-based options are ranked on cost per employee.

Frequently asked questions

What is the best HR software for a small business in Australia?

For most small businesses it is Deel, because Deel HR is free for up to 200 employees and still gives you real employee records, onboarding and leave tracking. If your team is deskless or shift-based, Connecteam is the better fit, free for up to 10 employees. If you want an Australian-built all-in-one with the strongest local compliance and are past a handful of staff, Employment Hero is the pick at $10 an employee a month. Use the calculator above to cost each at your headcount.

Is there free HR software for small business?

Yes. Deel HR is free for up to 200 employees, which covers most small businesses outright, and Connecteam's Small Business plan is free for life for up to 10 employees for scheduling, time tracking and team communication. Neither free tier is a trial, and both are genuine ongoing plans rather than a limited preview.

How much does HR software cost for a small business in Australia?

It depends on your team. Deel HR is free to 200 employees. Connecteam is free to 10, then $49 a month covering your first 30 users. Employment Hero charges $10 an employee a month with a minimum of about $100 a month, so it costs more for a very small team and becomes competitive as you grow. The live comparison table and calculator above show the real figure at your own headcount.

What HR software works best for a deskless or shift-based team?

Connecteam, because it is designed for teams that do not work at a desk. It combines rostering, a mobile time clock, task checklists and team chat, and its free plan covers up to 10 employees. Office-first HR tools tend to assume salaried, desk-based staff and handle hourly, shift-based work poorly.

Does HR software handle onboarding and leave for a small business?

Yes. All three picks handle employee records and time-off tracking, and Deel and Employment Hero add structured onboarding with documents and e-signatures. Employment Hero goes furthest on Australian-specific onboarding, contracts and policies, which is why it is the pick when local compliance is the priority.

How does MerchantCompare choose the best hr software for small business?

We are independent and not owned by any provider. Our picks weigh price, features and Australian fit for small business, using live pricing from our database, last checked 1 August 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.

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