Xero

Xero includes payroll on every plan starting from $78/mo (Grow) for the Ignite plan. There is no separate per-employee charge on top of your subscription fee, so payroll is bundled into the plan cost rather than priced per head. Each plan has a headcount limit for included payroll employees; exceeding that limit requires upgrading to a higher plan.

Yes. Xero is fully compliant with STP Phase 2 and reports wages, tax, and superannuation directly to the ATO each pay cycle. STP Phase 1 was shut down in February 2025, so any business still on the older format must have transitioned by now. Xero also supports the Payday Super obligations that take effect from 1 July 2026, meaning super contributions process on payday rather than quarterly.

Xero includes basic Australian Award support, but its interpretation capability is rated as limited compared to dedicated payroll specialists. It handles standard pay rates and leave types correctly for many SMBs. Businesses in award-heavy industries such as hospitality, retail, or construction with complex penalty rates, overtime rules, or shift loadings may find that a specialist platform such as KeyPay or Employment Hero provides deeper automation and better reduces the risk of underpayment claims.

Payroll is included on all Xero plans in Australia at no extra charge. This is a meaningful point of difference from competitors such as QuickBooks, where payroll is a third-party Employment Hero add-on. The trade-off is that Xero plans have a cap on the number of payroll employees; if you exceed the limit for your plan, you need to upgrade.

Xero suits most Australian small businesses that want a single subscription covering both accounting and payroll, without needing a separate payroll platform. It is strongest for businesses with straightforward pay structures and fewer than ten employees. Businesses with complex award obligations or significant workforce complexity may want to evaluate a dedicated payroll engine alongside or instead of Xero.

Both Xero and MYOB are STP Phase 2 compliant and handle superannuation, BAS lodgement, and standard leave entitlements. MYOB is generally considered stronger on Modern Award interpretation, particularly for businesses with complex award obligations. Xero has the larger accountant and bookkeeper network in Australia and a broader third-party app ecosystem. The right choice often comes down to whether your accountant already works predominantly in one platform.

Yes. Xero processes super contributions via its integrated clearing house partner, which allows you to submit contributions to multiple funds in a single transaction as part of the pay run workflow. This becomes especially important under the Payday Super rules from 1 July 2026, when quarterly super lodgement is replaced by a requirement to pay super on the same day as wages.