The best payroll software for a small Australian business is KeyPay, thanks to best-in-class Modern Award interpretation, no monthly minimum and a low $4 per employee. Employment Hero suits growing teams wanting HR built in, Xero Payroll is ideal if you already use Xero, and MYOB is a cheap add-on for existing MYOB users.
Independent guide by MerchantCompare. Prices last checked . How we compare
KeyPay is built purely for payroll and does it exceptionally well. It has best-in-class Australian Modern Award interpretation, no monthly minimum, and a low $4 per employee, so a small business pays only for the staff it has.
Watch out: It is payroll only, so you pair it with separate accounting software.
Employment Hero bundles payroll with onboarding, employee self-service and HR, which suits a growing team that wants one platform for people and pay. The $200 a month minimum means it makes more sense as headcount rises.
Watch out: A $200/mo minimum makes it dear for very small teams.
Xero Payroll is included in Xero plans, so if your accounting already lives in Xero it is the seamless choice: one login, one bill, and pay runs that flow straight into your books.
Watch out: Only compelling if you already run, or plan to run, Xero for accounting.
MYOB payroll is a low-cost add-on at $2 per employee a month (with the first few included in the base), so existing MYOB accounting users get compliant pay runs without moving platforms.
Watch out: Most valuable only if you already use MYOB for accounting.
Enter your business details to see what each option would cost you. Prices are live from our database and shown in Australian dollars.
| 4 Providers | KeyPay | Employment Hero | Xero | MYOB |
|---|---|---|---|---|
| Est. Cost /mo (AUD) | $20/mo | $200/mo | $35/mo | $14/moCheapest |
| Costs & Pricing | ||||
|---|---|---|---|---|
| Per-employee fee /mo | $4/emp/mo (Standard) | $20/emp/mo (Lite) | $0 (included) | $2/emp/mo |
| Monthly base fee | $0 | $200/mo min | $35/mo (Ignite) | $12/mo (up to 4 emp) |
| Global/remote hiring | No | No | No | No |
| Contractor payments | Yes | Yes | Yes | Yes |
| Contract required | No | No | No | No |
| Compliance & Awards | ||||
| Award interpretation | Yes (Plus, 100+ Awards) | Yes (KeyPay engine) | Limited | Yes |
| STP Phase 2 | Yes | Yes | Yes | Yes |
| Payday Super ready | Yes | Yes | Yes | Yes |
| Super payments | Yes (built-in) | Yes | Yes | Yes |
| Misclassification protection | No | No | No | No |
| Immigration/visa support | No | No | No | No |
| Contractor-to-employee conversion | No | No | No | No |
| Leave management | Yes | Yes | Yes | Yes |
| Timesheet tracking | Yes | Yes | Yes (basic) | Yes |
| Features & Integrations | ||||
| Employee self-service | Yes | Yes | Yes | Yes |
| Accounting integration | Xero, MYOB, QuickBooks, NetSuite | Xero, MYOB, QuickBooks | Xero (native) | MYOB (native) |
| Customer support | Business hours AU | Business hours AU | 24/7 online | Business hours AU |
Payroll is where small business compliance gets real: get a pay run or an award wrong and you have underpayments, unhappy staff and potential penalties. The right software automates Modern Award interpretation, superannuation and Single Touch Payroll so you do not have to think about them. The main decision is whether to use a dedicated payroll tool or the payroll built into your accounting software. Below are our ranked picks, then a live calculator to cost each at your headcount.
Small businesses weigh payroll on compliance accuracy first, then cost per employee and fit with their existing tools. We ranked on the quality of Australian Modern Award interpretation (the thing most likely to cause underpayments), STP Phase 2 and superannuation handling, the real monthly cost once you count employees and any minimum, and whether the payroll integrates with the accounting software you already use. Pricing is live from our database in Australian dollars.
Award interpretation is the feature that earns its keep. If you employ staff under a Modern Award, especially in hospitality, retail or care, software that applies the award rules automatically prevents the underpayment mistakes that catch out manual or spreadsheet payroll. After that, weigh the real cost: a per-employee fee with no minimum (like KeyPay) is cheapest for a small team, while a platform with a monthly minimum only makes sense once you have enough staff to spread it across.
If your accounting already lives in Xero or MYOB, their payroll may be all you need: Xero includes it, MYOB adds it for $2 per employee, and both keep your pay runs and books in one place. A dedicated tool like KeyPay is the better call when you want the strongest award interpretation, run payroll separately from accounting, or have award-covered staff where accuracy is critical.
Every contender here lodges Single Touch Payroll Phase 2 to the ATO and handles superannuation, including the move toward Payday Super. That baseline is covered across the board, so let award-interpretation quality, cost per employee and integration with your accounting decide it.
For most small businesses, KeyPay is the pick: the best award interpretation, no minimum, and a low $4 per employee make it both compliant and cheap. Choose Employment Hero if you want HR and onboarding bundled with payroll and your team is large enough to absorb the $200 minimum. If your accounting is already in Xero, Xero Payroll is the seamless, no-extra-bill option, and MYOB users get a cheap add-on at $2 per employee. Use the calculator above to cost each at your employee count.
KeyPay is the best overall for most small businesses: it has the strongest Modern Award interpretation, no monthly minimum, and a low $4 per employee. Employment Hero is better if you want HR built in, and Xero Payroll is best if you already use Xero.
For a small team, KeyPay at $4 per employee with no minimum is usually the cheapest standalone option. MYOB is $2 per employee for existing MYOB users. Employment Hero has a $200 a month minimum, so it only becomes competitive as headcount grows.
Yes. The main contenders lodge Single Touch Payroll Phase 2 to the ATO and handle superannuation. Award interpretation varies: KeyPay and Employment Hero are strongest, automatically applying Modern Award rules, which matters for hospitality, retail and care businesses.
It depends on your accounting choice. Xero includes payroll, and MYOB offers it cheaply as an add-on, so existing users may not need separate software. A dedicated tool like KeyPay is worth it when you want the best award interpretation or run payroll independently of your books.
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 31 May 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.