Australian companies, whether well-established or start-ups, will face increasing pressure in 2025 to manage hybrid workforces, comply with Fair Work laws, and streamline HR procedures. Payroll software solutions are useful in this situation.Â
But how can you tell efficiency from hyped nonsense when there are dozens of platforms vying for the title of “best”?
Instead of listing generic tools, this article examines 6 best payroll software for small businesses in Australia that truly stand out for businesses across Australia.
Key Payroll Challenges for Australian Businesses in 2025
Before selecting the right software, it is helpful to understand the challenges that most businesses face. These issues often shape the criteria for evaluating a payroll solution in Australia.
From changing tax laws to managing hybrid teams and ensuring STP compliance, Australian companies in 2025 are facing multiple layers of complexity—making reliable, scalable payroll solutions a non-negotiable requirement.
- Keeping up with Fair Work updates and modern award interpretation.
- Navigating STP Phase 2 and superannuation reforms.
- Supporting payroll for remote, hybrid, or overseas employees.
- Avoiding errors in leave accruals and tax reporting.
- Maintaining employee data security and meeting ATO compliance standards.
Top 6 Payroll Software Solutions in 2025
Are you unsure which payroll software is best for you?Â
Here are the top payroll solutions in Australia:
1. DHRP - Dynamics 365 HR & Payroll
DHRP is a valuable tool for Australian companies that are already using Microsoft’s technology stack. It is one of the most reliable end-to-end HR and payroll solutions in Australia, integrated directly into Microsoft Dynamics.
- Award and EBA compliance are designed to meet Australian standards.
- Automated leave accruals, STP reporting, and payroll processing.
- Superannuation calculation and contribution tracking built-in.
- Workflows for approval, workforce analytics, and employee self-service portal.
- Integrated with Microsoft Finance, Teams, and Power BI.
Enterprise-level payroll implementation experts and local support.
DHRP is arguably one of the best Payroll & HR software solutions for businesses, especially when scaling and needing long-term flexibility from the system.Â
Moreover, if your operations require close coordination between HR, finance, and reporting under one roof, you need DHRP.
2. Employment Hero
Employment Hero is a great option if your business is expanding rapidly and you need to centralise payroll, compliance, and HR. It combines payroll, hiring, and performance into a streamlined, cloud-based solution.
- Automated tax and super calculations are compatible with STP Phase 2.
- Integrated performance monitoring, document management, and onboarding
- Goal-setting, employee benefits, and engagement tools all in one system.
- Managers and employees can access mobile apps.
- Excellent choice for companies looking for a comprehensive payroll and HR solution in Australia
If you’re looking for the best Payroll software in Australia for 2025 that can evolve into a comprehensive HR ecosystem, this is the perfect choice.
3. ADP
Large organisations that require significant compliance strength and security continue to choose ADP as one of Australia’s most reliable payroll solutions.
- Worldwide reach with a significant localisation in Australia.
- Enterprise governance and data security with ISO certification.
- Cost forecasting, audit trails, and analytics powered by AI.
- Smooth interaction with ERP systems such as Microsoft, SAP, and Oracle.
- Provides knowledgeable payroll implementation experts and local support.
ADP is overkill for small businesses, but it excels when compliance, scale, and workforce support across borders are your main priorities.
4. Gusto
Originally founded in the US, Gusto has grown to be a strong choice for Australian companies with global aspirations. It is particularly helpful for remote-first or hybrid teams due to its adaptable, people-first design.
- Global payroll capabilities, now extended to accommodate Australia, too.
- Easy benefits administration, contractor payments, and onboarding.
- STP compliance and automated tax computations for Australian businesses.
- Connects to other solutions such as Slack, Xero, and QuickBooks.
- Perfect for new businesses with geographically dispersed teams.
In 2025, Gusto will rank among the best payroll solutions in Australia for cross-border, agile companies that are prepared to grow strategically, even though it may not yet be the name that every Australian boardroom uses.
5. Rippling
In Australia’s payroll software market for 2025, Rippling is a rising star. It is gaining popularity among Australian tech companies, particularly those with international teams, and is recognised for its pioneering global approach.
- Payroll, HR, benefits, and IT provisioning are all combined into a single workforce platform.
- STP, super, and leave compliance are all features of AU payroll.
- Smooth administration of US-AU entities for distant teams.
- You only pay for what you use with modular pricing.
- Many legacy players cannot match the clever automations and app integrations.
Despite being a more recent addition to the AU space, Rippling is perfect for contemporary distributed teams seeking scalability and flexibility with an architecture that looks to the future.
6. MYOB
For many years, MYOB has been a dependable tool for Australian businesses, and its 2025 payroll module continues to help those seeking reliable, legally compliant accounting processing.
- Payroll and accounting have been combined into a single platform.
- ATO-certified and prepared for STP Phase 2.
- Pay runs, super payments, and employee records were all streamlined.
- For non-technical users, the interfaces are simple and easy to use.
- Ideal for sole proprietors, tradies, and service industries.
MYOB continues to be a reliable option if you’re searching for the best payroll systems for Australian businesses that also keep your books organised.
What Sets These 6 Payroll Solutions Apart?
These 6 platforms are unique because they can cater to different business models in Australia’s heterogeneous economy without imposing a one-size-fits-all strategy. Collaboration, compliance, and adaptability are key components of the modern payroll ecosystem, which spans from microbusinesses to global operations.
Here’s a final glance at where each shines:
Software | Best For | HR + Payroll Integration | STP Phase 2 Ready | Notable Feature |
Employment Hero | Startups & SMEs | âś…âś…âś… | âś… | Benefits + HR + Payroll |
ADP | Enterprises & Multinationals | âś…âś… | âś… | Global compliance scale |
Gusto | Remote & global teams | âś…âś… | âś… | Contractor-friendly tools |
Rippling | Tech-forward firms | âś…âś…âś… | âś… | Unified IT + HR workflows |
DHRP | Microsoft-based businesses | âś…âś…âś… | âś… | Native Dynamics 365 integration |
MYOB | Microbusinesses & tradies | âś… | âś… | Integrated accounting & payroll |
The goal of selecting the best payroll software is to future-proof your finance and HR operations while closely adhering to Australia’s changing regulatory environment. It’s not just about automating tasks.
These payroll software options are at the forefront of payroll innovation in Australia in 2025, whether you’re replacing a legacy system or moving up from spreadsheets.
Comparison of Cloud vs. On-Premise Payroll Solutions
Choosing between cloud-based and on-premise payroll software is one of the most important decisions Australian businesses must make in 2025. Both offer payroll automation and compliance, but the level of flexibility, control, and cost structure can vary significantly.
Cloud-based systems are gaining traction for their scalability, real-time updates, and remote accessibility, while on-premise solutions appeal to businesses with tighter data control or unique customisation needs.
- Cloud platforms update automatically with the latest ATO regulations and STP compliance.
- On-premise solutions may involve higher upfront investment and IT maintenance.
- Cloud offers easier integration with third-party applications, such as finance, HR, and timesheets.
- On-premise may suit businesses with strict data residency policies or low internet reliability.
- Cloud is ideal for growing or hybrid teams; on-premise fits static or highly regulated operations.
Conclusion
In 2025, selecting the right payroll software is about more than ticking off features—it’s about aligning with your business structure, compliance needs, and growth plans.Â
Whether you run a small firm or a multinational team, the right solution will simplify HR tasks and ensure ATO compliance. Among these options, DHRP stands out for Microsoft-centric organisations needing seamless integration, advanced analytics, and local support.
As a payroll implementation specialist, DHRP offers end-to-end setup tailored to Australian laws and awards, ensuring a seamless integration. Don’t just buy software—invest in a system that evolves with you, with the right specialist by your side.
