Payroll software · Australia · Head-to-head
Employment Hero Payroll (formerly KeyPay) vs Xero Payroll (AU)
Two Australia payroll software options, compared side by side for Australia trades.
Which should you choose?
Employment Hero Payroll (formerly KeyPay) and Xero Payroll (AU) are both Tier S: our check found each one's prices published on its own website, so you can compare their costs before talking to sales. The tier is not a quality ranking: weigh the pros, cons, pricing and Australia-specific notes below against your trade and region.
Employment Hero Payroll (formerly KeyPay)
Tier S · Published pricesEmployment Hero's payroll (formerly KeyPay): award-rate automation, STP Phase 2 and built-in super clearing
Employment Hero Payroll is the former KeyPay, which HR software company Employment Hero acquired in February 2022 and rebranded in May 2023. Employment Hero says its payroll updates pay rates automatically for modern awards and penalty rates, pulls in rostering and timesheet data, and reports through Single Touch Payroll Phase 2. It is sold as a Payroll plan or inside the Employment Unlimited HR and payroll bundle, and Employment Hero says it has more than 350,000 customers.
Pros
- + Pay rates update automatically for modern awards and penalty rates, Employment Hero says
- + STP Phase 2 reporting to the ATO
- + Built-in super clearing (HeroClear) for Payday Super
- + Rostering and time data sync into pay runs
Cons
- − Minimum of 10 Users, so a 3-person crew pays for 10
- − Payroll page shows no billing period or GST basis for the $10 price
- − Rostering & Time is a paid add-on
- − The full HR and payroll bundle (Employment Unlimited) is quote-only
Australia note
Employment Hero calls its payroll 'ATO-recognised' for STP Phase 2 reporting. For Payday Super (from 1 July 2026 super must be paid every pay cycle), its HeroClear clearing house validates, pays and tracks super contributions from payroll.
Xero Payroll (AU)
Tier S · Published pricesPayroll built into Xero's Australian plans: STP Phase 2 reporting and super payments, with payroll for 2, 5 or 10 people by plan
Xero Payroll is built into Xero's Australian accounting plans rather than sold as a separate add-on: Grow includes payroll for 2 people, Comprehensive for 5 and Ultimate 10 for 10, with larger Ultimate tiers. Xero, headquartered in Wellington, New Zealand, says 5 million customers use its software worldwide. Its Australian head office is in Melbourne, with offices in Brisbane and Sydney.
Pros
- + Payroll included in the plan price, with no separate payroll subscription
- + STP Phase 2 reporting to the ATO each payday
- + Super calculated and paid from each pay run for Payday Super
- + Xero Me app for payslips, leave requests and timesheets
Cons
- − Payroll headcount is capped by plan: 2 on Grow, 5 on Comprehensive, 10 on Ultimate 10
- − Extra charges may apply above the included number of people, and they are not listed on the pricing page
- − No award-interpretation feature described; Xero points users to the Fair Work Ombudsman
- − Payroll requires a Xero accounting plan
Australia note
Xero says its payroll handles Single Touch Payroll Phase 2 reporting to the ATO each payday and calculates and pays super in each pay run for Payday Super, which started on 1 July 2026, at no extra cost. For award obligations it points users to a payroll specialist or the Fair Work Ombudsman rather than automating award rules.
More Australia options
See all Australia payroll software vendors and the rest of the Australia directory.