Companies in Australia are attracting people from around the world thanks to their thriving economy and employee-friendly corporate culture. However, the onboarding procedure and payroll setup are both time-consuming. To avoid costly penalties, employers in Australia must comply with payroll regulations and processes, just as they do in other countries.
So, instead of facing a pile of papers or dispersed payroll sheets, you just need the best HR & Payroll software. A specialised solution like Dynamics 365 can streamline these tasks, ensuring compliance while saving time and reducing manual effort.
If you are not sure if it is the best payroll solution for you, let’s talk about everything you need to know about D365.
Why HR & Payroll Software Matters in Australia
In 2025, Australian companies will face increasing pressure to comply with stricter Fair Work rules, changing tax legislation, and rising expectations for digital efficiency. In this context, using obsolete payroll systems or manual HR processes is no longer viable. A smart, unified HR and payroll software system has become a valuable tool, not just for compliance but also for strategic growth.
Recent revisions to STP Phase 2, a greater emphasis on gender pay equity reporting, and harsher audits of superannuation payments have made automation critical. Modern payroll technologies assure real-time compliance, decrease administrative burdens, and enable organisations to respond to rapid legal changes.
Here’s why a next-gen solution is vital:
- Real-time updates aligned with the ATO and the Fair Work Ombudsman.
- Automatic calculation of complex award criteria and shift differentials.
- Employees have instant, secure access to their payslips, rosters, and leave balances.
- Supports hybrid work, contractor payments, and multi-location teams.
- Integrates seamlessly with accounting, ERP, and workforce management systems.
Many Australian SMEs and organisations continue to struggle with fragmented systems, such as manually syncing HR records with payroll software or reentering data across platforms. These inefficiencies lead to errors, compliance gaps, and excessive costs.
Adopting a scalable, Australian-compliant solution such as Dynamics 365 HR & Payroll enhances accuracy while also allowing teams to focus on people rather than paperwork.
Understanding Australian Payroll and HR Compliance
Before moving on to the major areas of best HR software for businesses, you need to understand regulations and legislation governing payroll and HR compliance in Australia:
Payroll Data & Filings
In Australia, payroll data standards include supplying employees with paychecks within one working day of payment and guaranteeing data security. The Single Touch Payroll (STP) system mandates real-time salary reporting to the ATO but does not require year-end summaries for payroll.
New Employees
In Australia, new employees must complete a New Hire Form, sign a Tax File Number (TFN) declaration, and select a superannuation fund using a completed Superannuation Choice Form. If no fund is chosen, employers should provide a default fund, which is usually prevalent in the employee’s industry.
The Fair Work Act does not clearly mention probationary periods. Employees can file an unfair dismissal suit after six months of employment (or twelve months for small enterprises).
Leavers & Terminations
The Fair Work Ombudsman establishes minimum notice periods for employment terminations based on service length:
- 1 year of service or less - one week
- Service of one to three years, two weeks
- Service of 3 to 5 years - 3 weeks
- Service of five years or more - four weeks
It should be noted that an employee over the age of 45 who has worked for more than two years is automatically entitled to an additional week’s notice. The notice period required by an individual who wishes to end their job can be negotiated in a contract.
Fair Work Act 2009
Employee rights are guaranteed by the Fair Work Act of 2009.
Additional non-salary benefits are also recommended; however, they are optional.
In Australia, it is usual to use a company-paid mobile phone for business conversations, and many organisations additionally provide cash incentives for exceptional performance, loyalty prizes for long-term service, and employee well-being benefits.
Benefits of Dynamics 365 HR & Payroll for Australian Businesses
Microsoft Dynamics 365 is a comprehensive, all-in-one platform that enables Australian organisations to manage the complete workforce lifecycle, from onboarding and performance to payroll and compliance. It’s more than just software; it’s a strategic asset that improves operational efficiency, assures legislative compliance, and facilitates corporate expansion.
Payroll in Dynamics 365 automates and intelligently streamlines routine activities such as leave computations, tax deductions, and award interpretations, minimising manual labour and decreasing costly errors.
What was the result? Payroll cycles are faster, more accurate, and your HR team has more time to focus on people rather than processes.
Businesses using the DHRP’s HR and Payroll solutions in Australia can fully modify Dynamics 365 to satisfy local Australian needs, such as STP compliance, superannuation monitoring, and Fair Work Award mapping.
This localisation ensures that your system is not only compliant but also relevant to your sector and personnel structure.
Key benefits include:
- Integrate seamlessly with Microsoft technologies like Excel, Teams, and Power BI for deeper workforce insights.
- Real-time STP updates are delivered directly to the ATO, lowering audit risks.
- Employee self-service portals to manage payslips, rosters, and leave.
- Scalable characteristics are suited for both small businesses and growing enterprises.
Small to medium-sized Australian businesses that have implemented DHRP’s tailored Dynamics 365 configuration have experienced significant time savings, enhanced payroll accuracy, and increased employee satisfaction.
Whether you’re expanding your business or updating outdated systems, working with a qualified payroll implementation specialist ensures a smooth transition, accurate configuration, and long-term ROI.
Conclusion
Choosing the best payroll software for small businesses in Australia is crucial for staying compliant, reducing errors, and streamlining HR processes. Dynamics 365, when tailored by DHRP, offers a powerful solution that meets Australia’s evolving legal and payroll demands.
With built-in STP Phase 2 support, seamless integrations, and localised features, DHRP ensures that small businesses benefit from a smooth and efficient payroll experience. Their expert implementation delivers not only compliance but also real-time insights and improved workforce management.
For businesses seeking smart growth and simplified operations, partnering with a Dynamics 365 payroll consultant like DHRP ensures you get the most from your HR & Payroll solution—purpose-built for Australian companies.
