Payroll software for your Australian business

Take the stress out of payday. Xero's Australian payroll software helps you manage Single Touch Payroll reporting, superannuation, PAYG, and employee leave with confidence. You’ll spend less time reconciling spreadsheets, and more time running your business.

Person holding paperwork and a laptop with Xero open, demonstrating how to input payroll data.

Save time with Australian payroll software built for small business

96% of customers say they run payroll faster with Xero. Get through payday knowing your numbers are right and your team gets paid on time.

  • Tick

    Australia's Single Touch Payroll Phase 2 – sorted

    Xero Payroll is STP-compliant. Every payday, salary, wages, PAYG, and super report directly to the ATO automatically.

  • Tick

    Automated Australian payroll calculations

    Xero calculates pay, tax, super, and leave automatically – accurate records and STP compliance built in.

  • Tick

    Employee self-service with the Xero Me payroll app

    Give your team Xero Me to view payslips, submit leave, and log timesheets from their phone – without bothering you.

96% of customers say they run payroll faster using Xero

*Source: survey of 894 small businesses in Australia using Xero, May 2024

Four in five small businesses say Xero Payroll is easier than what they use

*Source: survey of 162-165 small businesses in UK and Australia using Xero, October 2025

I’ve gone from zero control to Xero control

Made by the Forge uses Xero to make quick decisions

A blacksmith doing metalwork

Australia’s Single Touch Payroll sorted

Xero Payroll is STP-compliant and helps you stay on top of ATO requirements. Xero reports your payroll data automatically every payday.Send digital Single Touch Payroll reports to the government each payday. The Single Touch Payroll-compliant system saves you time and helps with compliance.

  • Included
    Lodge salary, wages, PAYG, and super details automatically each payday
  • Included
    Send digital Single Touch Payroll reports directly to the ATO
  • Included
    Payroll reconciliation for the end of financial year is quicker and easier – transparency of key numbers and totals, and access to reports, makes reviewing and finalisation more efficient
Learn more about Single Touch Payroll
In the payroll software, the names of selected employees – and the amounts they’ve been paid – are ticked.

Automated Australian payroll calculations

Imagine a payday where the hard work is already done. Xero calculates employees’ pay and tax for you, helps simplify your pay, tax, and super calculations, and lets employees view leave balances and submit leave requests. You just review and approve.

  • Included
    Flexible pay calendars and pay rates give you full control
  • Included
    Direct deposits mean quick, secure payments – and happy employees
  • Included
    Payslips are instantly available in the Xero Me mobile payroll app
  • Included
    Pay employee super directly through Xero, without switching between systems
Xero’s payroll program for small business, showing employee details like employee type, salary, and next payday.

Employee self-service with the payroll app

The Xero Me app puts your team in control of their own payroll information. They handle the admin while you stay in control.

  • Included
    Your staff can access their payslips, view leave balances, and submit leave requests and timesheets
  • Included
    Employees can see and update their own payroll information
  • Included
    Xero Me lets your team do everything on the go right from their phone
A request for annual leave is being completed online using the Xero Me payroll app.

Plans to suit your business

Ignite

Usually $35

Now $7

AUD per month

Save $84 over 3 months

An easy financial foundation - track cash flow with the essentials.

Grow

Usually $75

Now $15

AUD per month

Save $180 over 3 months

Go beyond the basics - automate tasks and access performance dashboards.

Comprehensive

Usually $100

Now $20

AUD per month

Save $240 over 3 months

Optimise profitability - tailor your insights for greater control.

Usually $130

Now $26

AUD per month

Save $312 over 3 months

Future proof your scaling business - with advanced tools and analytics.

Simplify your entire business with Xero

Xero doesn't stop at payroll. Xero's accounting software integrates with Xero Payroll to lighten your workload, with simpler record-keeping and easier financial reporting. One platform for invoicing, cash flow, BAS, payroll, and more.

See how Xero can help your small business
A chart of income and expenses in Xero’s online payroll software displayed on a tablet.

Take control of financial year-end with Xero

Xero makes your End of financial year a lot less stressful. Xero tracks PAYG withholding, super obligations, and employee payments throughout the year as you go. So when the EOFY rolls around, you're ready.

Get EOFY-ready with Xero
The Xero dashboard shows an up-to-date summary of a business’s finances at the end of the financial year.

FAQs about Xero's payroll software

Yes. Xero payroll helps with compliance. Send your employees' super contributions to their nominated Australian super funds electronically through Xero. Reduce errors and save time with automatic calculations.

Yes. Xero payroll helps with compliance. Send your employees' super contributions to their nominated Australian super funds electronically through Xero. Reduce errors and save time with automatic calculations.

Xero automatically calculates leave, reducing errors and saving you valuable time. Xero calculates leave automatically and updates leave balances. And if you give your employees the Xero Me app, they can view their leave balances and submit leave requests themselves.

Xero automatically calculates leave, reducing errors and saving you valuable time. Xero calculates leave automatically and updates leave balances. And if you give your employees the Xero Me app, they can view their leave balances and submit leave requests themselves.

Yes. Employees can enter their own hours using the Xero Me app, and those hours flow directly into your payroll calculations. If your organisation uses Xero Projects, you can add project time into payroll timesheets.

Here’s more about Xero project tools

Yes. Employees can enter their own hours using the Xero Me app, and those hours flow directly into your payroll calculations. If your organisation uses Xero Projects, you can add project time into payroll timesheets.

Here’s more about Xero project tools

Absolutely. Through the Xero Me app, employees can access their payslips, check leave balances, submit leave requests, and log timesheets. With Xero Me, your team can view their own payslips, request leave, and submit timesheets online.

Absolutely. Through the Xero Me app, employees can access their payslips, check leave balances, submit leave requests, and log timesheets. With Xero Me, your team can view their own payslips, request leave, and submit timesheets online.

Xero gives you payroll reports, including payroll activity reports. You can also get the Employee Remuneration report and the Payroll Employee Summary report – which shows your employees and their earnings, deductions, taxes, superannuation, net pay and any reimbursements.

Xero gives you payroll reports, including payroll activity reports. You can also get the Employee Remuneration report and the Payroll Employee Summary report – which shows your employees and their earnings, deductions, taxes, superannuation, net pay and any reimbursements.

Xero Payroll is STP-compliant and ATO-registered. It automatically reports payroll data – salary, wages, PAYG withholding, and super – to the ATO each payday. It also helps with end-of-year payroll finalisation and reconciliation.

Xero Payroll is STP-compliant and ATO-registered. It automatically reports payroll data – salary, wages, PAYG withholding, and super – to the ATO each payday. It also helps with end-of-year payroll finalisation and reconciliation.

Half of small businesses say they got set up with Xero and felt ready to go in less than four hours.* You'll need your business details and employee information like their tax file numbers (TFNs), bank details, and super funds, and pay rates. Xero guides you through each step, and you can run your first pay run as soon as your employees are set up.

Half of small businesses say they got set up with Xero and felt ready to go in less than four hours.* You'll need your business details and employee information like their tax file numbers (TFNs), bank details, and super funds, and pay rates. Xero guides you through each step, and you can run your first pay run as soon as your employees are set up.

Yes. You can import payroll employees into Xero using a spreadsheet, and enter past earnings when transferring employees from another payroll system. Set up your employees and enter their opening balances in Xero so you're ready to run payroll. Xero's support team can help if you get stuck.

Yes. You can import payroll employees into Xero using a spreadsheet, and enter past earnings when transferring employees from another payroll system. Set up your employees and enter their opening balances in Xero so you're ready to run payroll. Xero's support team can help if you get stuck.

Single Touch Payroll (STP) is the ATO's system that requires employers to digitally report their payroll information – wages, tax, and super – each payday.

Xero’s Single Touch Payroll-compliant system lets you send digital payroll reports to the ATO each payday, helping you save time and stay compliant every time you run payroll.

Single Touch Payroll (STP) is the ATO's system that requires employers to digitally report their payroll information – wages, tax, and super – each payday.

Xero’s Single Touch Payroll-compliant system lets you send digital payroll reports to the ATO each payday, helping you save time and stay compliant every time you run payroll.

Yes. Xero calculates employees' pay and tax for you and helps with compliance through its Single Touch Payroll-compliant system. If you're unsure about your specific award obligations, check with a payroll specialist or the Fair Work Ombudsman.

Yes. Xero calculates employees' pay and tax for you and helps with compliance through its Single Touch Payroll-compliant system. If you're unsure about your specific award obligations, check with a payroll specialist or the Fair Work Ombudsman.

Xero calculates PAYG withholding automatically based on each employee's tax file number, tax scale, and earning details. Xero reports each employee's wages and withholding amounts to the ATO via STP each payday, so your records are always up to date.

Xero calculates PAYG withholding automatically based on each employee's tax file number, tax scale, and earning details. Xero reports each employee's wages and withholding amounts to the ATO via STP each payday, so your records are always up to date.

Yes. Xero is designed to handle both. Xero Payroll lets you pay employees and automatically calculate your pay runs. If you use contractors on a regular basis, you should set them up in payroll. If you have a mix of both, Xero gives you the tools to manage each correctly.

Yes. Xero is designed to handle both. Xero Payroll lets you pay employees and automatically calculate your pay runs. If you use contractors on a regular basis, you should set them up in payroll. If you have a mix of both, Xero gives you the tools to manage each correctly.

Xero's payroll pricing is based on the number of employees included per calendar month – not a per-transaction fee. With Xero business plans, you can send invoices and use payroll, alongside accounting features, in one place.

Here’s the pricing page.

Xero's payroll pricing is based on the number of employees included per calendar month – not a per-transaction fee. With Xero business plans, you can send invoices and use payroll, alongside accounting features, in one place.

Here’s the pricing page.

Yes – Use Single Touch Payroll (STP) to file your employees' pay and super information with the ATO. Send digital Single Touch Payroll reports to the government each payday, including salary, wage, PAYG, and superannuation details. Xero makes that straightforward, even if it's just you and one other person.

Yes – Use Single Touch Payroll (STP) to file your employees' pay and super information with the ATO. Send digital Single Touch Payroll reports to the government each payday, including salary, wage, PAYG, and superannuation details. Xero makes that straightforward, even if it's just you and one other person.

Switch to Xero Payroll

Moving to Xero Payroll is straightforward. Switch from spreadsheets or another provider and bring your payroll data with you.

Xero versus Reckon

Looking for an alternative to Reckon? Xero’s accounting software can help you take control of your business.

Xero vs Reckon

Xero versus MYOB

When it comes to reliable, user-friendly accounting software, Xero’s MYOB alternative has everything you need.

Xero vs MYOB

Software for better business

Xero software boosts every aspect of how you organise and manage your financial admin.

See all Xero features

Accounting tips for Australian businesses

Get essential advice on how to pay your employees – and get paid by customers – more easily. See all payment guides

Get one month free

Access Xero features for 30 days, then decide which plan best suits your business.

Already subscribed and need help with Xero Payroll?

Xero Central is a knowledge base filled with helpful articles to get you started.

Set up an employee's leave entitlements

Staff off on holiday? Make sure you get your employees’ wages right.

Setting employee leave entitlements

Add or edit an employee timesheet

Submit employee timesheets for the current pay period and approve them before you process the pay run.

Add, edit, and approve employee timesheets

Learn about payroll and employees

Articles and discussion on employee pay and tax, including timesheets, superannuation, and payroll reports.

See all payroll articles

FAQs about Xero in Australia

Yes. You can connect your Xero account with the ATO (Australian Taxation Office) to help you easily prepare and submit your returns, so you never miss a deadline.

Here’s more info on tax and super from the ATO.

Yes. You can connect your Xero account with the ATO (Australian Taxation Office) to help you easily prepare and submit your returns, so you never miss a deadline.

Here’s more info on tax and super from the ATO.

Yes. Xero complies fully with STP. You can send reports to ATO each payday without any hassle so you have more time for the rest of your business.

Yes. Xero complies fully with STP. You can send reports to ATO each payday without any hassle so you have more time for the rest of your business.

The best accounting software depends on your needs. Xero’s accounting software has flexible plans so you can adjust your subscriptions to access the features you need as your business grows.

Check out Xero’s pricing plans.

The best accounting software depends on your needs. Xero’s accounting software has flexible plans so you can adjust your subscriptions to access the features you need as your business grows.

Check out Xero’s pricing plans.

No – Xero is based in the cloud, so all you need is an internet connection. But you need a multi-factor authentication (MFA) app to log in to Xero. MFA adds an extra layer of security by checking that it’s really you when you log in.

Learn about data protection with Xero.

No – Xero is based in the cloud, so all you need is an internet connection. But you need a multi-factor authentication (MFA) app to log in to Xero. MFA adds an extra layer of security by checking that it’s really you when you log in.

Learn about data protection with Xero.

Yes – the Xero App Store has hundreds of apps to help manage your business, including apps specifically designed for your industry and for doing business in Australia.

Check out the Xero App Store.

Yes – the Xero App Store has hundreds of apps to help manage your business, including apps specifically designed for your industry and for doing business in Australia.

Check out the Xero App Store.

See how cloud payroll software streamlines tasks

Stop dreading this.

Read Xero reviews on G2