For Australian businesses, free payroll software is usually where things start. That might be a new business paying its first employee or a small team trying to keep costs down.

The problem is, payroll in Australia isn’t just about paying wages. Once you factor in modern awards, penalty rates, STP reporting and upcoming changes like Payday Super, even a “simple” setup can get complicated quickly.

Most free payroll tools are built for basic use. They can run a pay cycle and handle compliance at a surface level, but they usually stop there. There’s little connection to rostering, time tracking or HR, which means you end up bridging gaps manually as the business grows.

This comparison looks at the main free payroll options available in Australia, focusing on comparing their limitations, how well they handle compliance and whether they can support a business beyond the early stage.

5 Best Free Payroll Software in Australia

We've narrowed down what we feel are the best free options for payroll and STP. This assessment is based on:

1. Availability of a free plan or free access model
2. STP compliance and Australian payroll capability
3. Limitations of each free offering
4. Suitability for different business sizes
5. Ability to scale beyond basic payroll

1. ClockOn — Free Trial with Full Workforce Management Capability

Website: https://www.clockon.com.au

Register for free: https://online.clockon.com.au/

Free payroll & STP for up to 12 months or 27 STP submissions (whichever comes first). ClockOn is the only free STP-compliant payroll solution for up to 20 employees.

ClockOn provides a free trial of its full workforce management platform, offering access to payroll, rostering, time and attendance, and HR in a single system. While not permanently free, it stands apart from other options by demonstrating a complete, integrated payroll workflow rather than a limited subset of features.

Unlike most free tools that require manual data entry or separate systems, ClockOn connects rosters, timesheets, and payroll into one continuous process. This is particularly important in Australia, where award interpretation and penalty rates depend on actual hours worked and conditions.

Designed for:
Australian businesses with growing complexity, typically 20–500 employees, especially in shift-based industries

Strengths:

• Australian-built and designed for local compliance
• Integrated rostering, time tracking, payroll, and HR
• Automated award interpretation and penalty calculations
• STP-compliant payroll with direct ATO reporting
• Single system for workforce data

Limitations:

1. Free access is limited to a trial period
2. Onboarding recommended for 20+ staff, but simply to setup for small businesses

Suitability for Australia:
Highly suitable. Built specifically for the Australian regulatory environment rather than adapted from overseas systems.

Why This Is Ranked #1

Best Features

• Rostering: Plan shifts with visibility over roles and coverage
• Time and Attendance: Capture actual hours worked via mobile app or kiosk
• Payroll: Process pay runs using real worked data
• STP Reporting: Submit payroll data directly to the ATO
• Award Interpretation: Automatically apply complex pay rules
• Core HR Functions: Manage employee records, onboarding, and compliance

Who It’s Best For

• Businesses outgrowing spreadsheets or basic payroll apps
• Shift-based organisations with multiple awards
• Employers seeking to reduce compliance risk
• Teams wanting a single system rather than multiple tools

2. FAS3 Desktop by Free Accounting Software 

Website: https://www.freeaccountingsoftware.com.au/

Free Accounting Software STP is a no-cost payroll and Single Touch Payroll (STP) solution designed specifically for Australian micro businesses (up to 1 staff). It focuses on meeting ATO reporting requirements with a simplified payroll workflow, rather than providing a full payroll or workforce management system.

The platform is structured to handle essential payroll tasks and STP submissions, making it suitable for businesses that need compliance without additional operational features.

Designed for:
Micro businesses and closely held entities with straightforward payroll requirements

Strengths:

• Free STP-compliant payroll reporting
• Designed for Australian businesses
• Simple setup for basic payroll needs
• No subscription cost

Limitations:

1. Limited support for complex award interpretation
2. Desktop only product means manual updates
3. Desktop software requires installation on new devices
4. Manual handling of penalties, overtime, and allowances
5. Not designed for scaling workforce operations

Suitability for Australia:
Appropriate for very small businesses with simple payroll structures. Less suitable for organisations with multiple employees, awards, or shift-based operations.

3. Payroller (App Only) — Free Mobile Payroll App

Website: https://payroller.com.au

Payroller is an Australian payroll app offering free payroll functionality through a mobile-first experience.

Designed for:
Small businesses and sole traders managing payroll on mobile

Strengths:

• Free to use
• STP-enabled
• Simple mobile interface

Limitations:

1. App-based only, limiting workflow flexibility
2. App may be difficult for those with poor eyesight or dexterity vs computer software
3. Limited scalability for growing teams

Suitability for Australia:
Good for basic compliance and small teams, but limited for operational workforce management.

4. e-PayDay FREEPAY — Free Desktop Payroll Software

Website: https://www.epayday.com.au

e-PayDay FREEPAY is a desktop-based payroll solution offering a free version for Australian businesses.

Designed for:
Small businesses comfortable with desktop software

Strengths:

• Australian payroll focus
• STP-enabled
• No ongoing subscription cost

Limitations:

1. Desktop-based, limiting accessibility
2. Manual processes for complex payroll scenarios
3. No integration with rostering or attendance systems
4. Outdated user experience

Suitability for Australia:
Moderate for simple payroll setups, but lacks modern workflow integration.

5. Reckon STP App — (No Longer Available)

Website: https://www.reckon.com

 Note: Reckon appears to have removed the free option for their mobile app.   Trial is now limited to standard 30 day trial

The Reckon STP App is a free mobile solution designed primarily for STP reporting rather than full payroll management.

Designed for:
Micro businesses needing STP compliance

Strengths:

• Free STP reporting
• Simple setup
• Australian-focused

Limitations:

1. Limited payroll functionality beyond reporting
2. No automation for awards or pay conditions
3. No rostering or time tracking
4. Not suitable for complex payroll

Suitability for Australia:
Useful for compliance reporting only, not a complete payroll solution.

Benefits of Free Payroll Software

Free payroll tools can be useful in specific scenarios:

• Managing very small teams
• Reducing upfront costs
• Meeting basic STP reporting requirements
• Testing payroll processes

These tools are easy to get started with, which is why they’re popular early on. Most have little to no upfront cost, simple setup, and just enough functionality to run a basic pay cycle.

The trade-off shows up as soon as things get slightly more complex. Managing different award conditions, tracking actual hours worked, or reconciling timesheets against payroll often sits outside the system. That usually means spreadsheets, manual checks, and double handling.

As headcount grows, those gaps start to slow things down. What worked for one or two employees becomes harder to manage across a larger team, especially in shift-based environments where hours, penalties, and allowances change week to week.

Limitations of Free Payroll Software

As businesses grow, limitations become more apparent:

1. Minimal or no award interpretation
2. Manual handling of penalties and overtime
3. No connection between rostering and payroll
4. Increased risk of payroll errors
5. Limited support and scalability

In Australia, these limitations directly impact compliance and accuracy.

What to Look for in Free Payroll Software in Australia

When evaluating free payroll options, businesses should consider:

• STP compliance capability
• Ability to handle superannuation correctly
• Upgrade path to more advanced features
• Integration with workforce data (rosters and timesheets)
• Local support and documentation

Why Integrated Platforms Outperform Free Tools

Free payroll software typically focuses on pay runs and STP in isolation. In practice, payroll is the output of workforce activity, but the level of complexity varies significantly depending on the size and structure of the business.

For closely held entities and small businesses with only a few employees, free or lightweight payroll tools can be sufficient. In these environments, pay conditions are often straightforward, award complexity is limited, and payroll can be managed with minimal inputs. The overhead of implementing a fully integrated system may not be necessary at this stage.

As businesses grow, however, payroll becomes more dependent on upstream data. This is where integrated platforms provide a structural advantage.

An integrated system connects:

• Rosters (planned work)
• Timesheets (actual work)
• Payroll (paid work)

This connection reduces manual data entry, improves accuracy, and ensures that pay is calculated based on real working conditions rather than assumptions or manual adjustments.

ClockOn reflects this model by providing a single, connected system designed for Australian businesses with increasing operational complexity.

FAQs

What is the best free payroll software in Australia?
For basic use, apps like Payroller or Reckon STP App are common. For a complete system, trial-based platforms like ClockOn provide a more realistic solution.

Is there completely free payroll software in Australia?
Yes, but most options are limited to micro businesses or basic compliance tasks.

Does free payroll software support STP?
Some tools do, particularly apps designed for reporting, but functionality is often limited.

Can free payroll software handle awards?
Most cannot fully automate award interpretation, requiring manual calculations.

What is the main limitation of free payroll tools?
They typically do not integrate with rostering or time tracking, increasing manual work.

Is Payroller suitable for growing businesses?
It works for small teams but may not scale well as complexity increases.

What does the Reckon STP App do?
The free Reckon STP app is no longer available and now sites within their broader payroll functionality (no free subscription, just a 30 day trial).

Is desktop payroll software still relevant?
Some businesses use it, but cloud systems offer better flexibility and updates.

When should I upgrade from free payroll software?
When payroll becomes time-consuming, error-prone, or involves multiple pay rules.

Why do integrated systems reduce payroll errors?
They eliminate manual data transfer between systems, ensuring consistency across workflows.

Sources

1. ClockOn - https://www.clockon.com.au/
2. Payroller – https://payroller.com.au
3. e-PayDay FREEPAY – https://www.epayday.com.au
4. Reckon STP App – https://www.reckon.com