Reckon vs Xero Payroll (AU)

Long-standing AU accounting/payroll brand — low-cost, STP Phase 2, payday-super ready

⚠ AU review sites (2025–2026) carry recurring complaints of forced subscription upgrades / large price increases and an upfront-annual-billing, no-refund policy.

An Australian publicly-listed company with 30+ years in AU accounting/payroll, positioned explicitly as a cheaper MYOB/Xero alternative at the SMB/micro end. Its current lineup (Reckon One payroll, Payroll App, Payroll Premier) targets sole traders and small teams wanting cheap, ATO-compliant STP without a full accounting suite — a fit for the solo operator or small crew that just needs compliant payslips, leave and STP.

Pros

• + Genuinely Australian (ASX-listed, 30+ years, AU-hosted data)
• + STP Phase 2 compliant + ATO-registered across all payroll products
• + Explicitly "Payday Super ready for 1 July 2026"
• + Very low entry pricing (~$16/mo for up to 4 employees) + standalone mobile app

Cons

• − Reviews call the software dated vs Xero/MYOB
• − Repeated complaints of forced upgrades + steep price jumps
• − Upfront annual billing + a no-refund stance
• − No meaningful built-in award interpretation (weak for award-heavy shift trades)

NZ-built accounting-tight payroll — STP Phase 2 native, dominant in AU SMB

Xero Payroll AU is embedded in Xero accounting (Xero is NZ-built, dominant in AU SMB). STP Phase 2 native, ATO compliant, award interpretation supported. Strongest fit for AU trades already on Xero accounting.

Pros

• + Tight integration with Xero accounting (dominant in AU SMB)
• + STP Phase 2 native + ATO compliance
• + Modern UX
• + Cross-market consistency

Cons

• − Value depends on Xero accounting subscription
• − Less award-interpretation depth than KeyPay
• − Pricing add-on stacks with Xero subscription