Cheapest ATO-Registered Payroll Software for Small Business Australia

The Best Value in Australia: Get started for $0 with up to 3 employees or choose our $99 annual plan for 4 employees.

Finding the best cheap payroll software for small businesses shouldn't mean sacrificing compliance or features. For Australian startups and micro-businesses, navigating Single Touch Payroll (STP) Phase 2 and the upcoming Payday Super mandates is critical.

We’ve built an ATO-registered Single Touch Payroll solution specifically for the needs of local small businesses and startups. While our sister product (e-PayDay Go®) handles larger enterprise needs, e-PayDay FREEPAY® is dedicated to providing affordable, easy-to-use payroll for the "little guy" at freepay.com.au. Whether you need a robust Payroller alternative or a low-cost $99 annual plan, our award-centric software ensures you effortlessly comply with the Fair Work Voluntary Small Business Wage Compliance Code.

Start with e-PayDay FREEPAY® Today

Why e-PayDay FREEPAY® is the Top Choice

We didn't just adapt to STP; we co-designed it with the ATO. In 2017, the e-PayDay team lodged the first-ever STP report.

Today, e-PayDay FREEPAY® continues to lead with a "compliance-first" approach that other "low-cost" providers often ignore.

1. 100% Free Plan (Up to 3 Employees)

The e-PayDay FREEPAY® plan is the most comprehensive free option in Australia:

• Unlimited STP Lodgements: No hidden "pay-per-report" fees.
  

• Full Functionality: Access the same powerful tools as our paid plans.
  

• Support Included: 30 days of unlimited telephone assistance to get you set up.

2. Payday Super Integration (Zero Extra Fees)

One click, total compliance. e-PayDay FREEPAY® and SuperChoice make Payday Super reporting effortless for small employers at zero cost.

With the shift to Payday Super, employers must pay super contributions at the same time as wages.

Through our partnership with SuperChoice, e-PayDay FREEPAY® automates this:

• Real-Time Reporting: Validation and payment happen on pay day.
  

• Regulatory Peace of Mind: Meet ATO requirements without manual data exports.
  

• Zero Cost Integration: Unlike other platforms that charge extra for Clearing House access, our Payday Super automation is included at no additional cost.

3. The $99 Annual Plan for Growing Teams

If your business has up to 4 employees or experiences high seasonal turnover, our $99 Payroll Only plan is the perfect fit. Unlike competitors who charge per "active" head, this plan allows for unlimited terminated employees, making it ideal for Hospitality and Agriculture.

4. Real-Time Fair Work Award Integration

Underpaying staff—even by accident—is now a serious risk for small businesses. e-PayDay FREEPAY® is "Award-centric," meaning we do the heavy lifting for you:

• All 122 Modern Awards Included: Access every Fair Work Award and classification directly within the software.

  
  

• Automatic Rate Updates: When the Fair Work Commission increases the National Minimum Wage or Award rates, your software notifies you and updates automatically.

  
  

• Compliance Protection: By using our real-time Award data, you are taking the "reasonable steps" required to comply with the Fair Work Voluntary Small Business Wage Compliance Code, protecting you from potential criminal prosecution for honest mistakes.

Comparing e-PayDay FREEPAY® to "low-cost" Alternatives

Many "low-cost" payroll apps sacrifice essential functionality to reduce their price. e-PayDay FREEPAY® avoids this by offering a feature-rich environment that rivals Xero, MYOB, ClockOn, Reckon, and Payroller, while remaining specifically tailored to the Australian regulatory landscape.

e-PayDay FREEPAY® vs. The Competition

Feature	e-PayDay FREEPAY®	e-PayDay Go® $99 Plan	Standard Paid Software
Monthly Fee	$0	$99 / year	$15 – $60+
Fair Work Awards	All 122 (Real-Time)	All 122 (Real-Time)	Often Manual Entry Only
STP Phase 2	Included	Included	Included
Payday Super	Included ($0)	Included ($0)	Often a paid add-on
Data Security	ISO 27001 Certified	ISO 27001 Certified	Varies
Support	30 days (from submitting your first support request)	Unlimited	Usually Chat/Email only

Payroll Compliance Made Simple

Navigating the Australian regulatory landscape is the single biggest stressor for small business owners. We’ve designed e-PayDay FREEPAY® around four critical pillars to ensure you stay protected without needing a degree in accounting.

1. ATO-Registered STP Phase 2

As an ATO-registered provider that co-designed the original STP standards, we ensure your reporting is seamless. Our software handles the complex data requirements for STP Phase 2, including allowances and salary sacrifice, so your lodgements are accurate every single time.

2. Real-Time Fair Work Awards

Underpayment is a major risk for the "little guy". Our Award-centric platform integrates all 122 Modern Awards. When the Fair Work Commission updates rates, our system reflects those changes automatically, helping you comply with the Fair Work Voluntary Small Business Wage Compliance Code effortlessly.

3. Zero-Cost Payday Super

With Payday Super mandates arriving in 2026, you need a solution that won't eat your margins. Through our integrated SuperChoice partnership, superannuation reporting and payments are automated at no additional cost, ensuring you meet your obligations on the same day you pay your staff.

4. Enterprise-Grade Security

Your data privacy is non-negotiable. We are ISO 27001 certified, meaning our security systems are independently audited to meet international standards. You get the same bank-level data protection as a major corporation, even on our $0 free plan.

Payroll Compliance made simple. We’ve automated the four biggest headaches for small business owners—STP Phase 2, Fair Work Awards, Payday Super, and Data Security—so you can focus on growth, not paperwork.

Expert Insights for Small Business Employers

Who is e-PayDay FREEPAY® for?

We designed this specifically for those who are often left behind by the big software companies:

• The Brand New Startup: Get your compliance right from your very first hire without adding a monthly bill to your overhead.

  
  

• The Micro-Business: If you have 1 to 3 staff members, you shouldn’t have to pay for a "Gold-Plated" system just to lodge your STP.

  
  

• The Hands-on Owner: If you’re doing the books yourself on a Sunday night, you need a tool that is straightforward and ATO-registered, not a complex maze of features you'll never use.

How easy is it to switch from Xero or Payroller?

Honestly? It’s much simpler than most people think. You can export your employee details from your current provider and bring them straight into e-PayDay FREEPAY®.

Because we know the "little guy" often does their own admin, we don’t leave you hanging. We help you meet all official Fair Work record-keeping and pay slip requirements, and we offer 30 days of unlimited phone support to help you get your first pay run exactly right.

Pro-Tip for Audits: If Fair Work ever visits your business, the first thing they look for is a history of correct Award classifications. By using e-PayDay FREEPAY®, you can generate reports that show you’ve used real-time, official Award rates, which is a massive help in proving your "reasonable steps" toward compliance.

Plus, your data is safe with us. e-PayDay FREEPAY® is ISO 27001 certified, meaning we meet the highest international standards for information security. You get the same level of protection as a large corporation, at a price that actually fits your budget.

Whether you're running a Cafe or just starting out, payroll shouldn't keep you up at night. e-PayDay FREEPAY® handles the complex ATO requirements, so you can get back to doing what you love.

Frequently Asked Questions (FAQ)

Is e-PayDay FREEPAY® really free? 

Yes. For businesses with 3 or fewer employees, our plan has no monthly subscription and includes unlimited STP lodgements.

Does this software support STP Phase 2? 

Absolutely. e-PayDay FREEPAY® is fully registered with the ATO for Phase 2 reporting, including salary sacrifice, allowances, and child support.

What is Payday Super? 

It is a new requirement for super to be paid on the day as salary and wages. e-PayDay FREEPAY® handles this automatically via our integrated SuperChoice Clearing House.

How do I know my pay rates are correct when Fair Work changes the Awards?

With e-PayDay FREEPAY®, you don't have to check the Fair Work website every June. Our software is "Award-centric" and integrates all 122 Modern Awards. When the Fair Work Commission updates the National Minimum Wage or specific Award rates, the software notifies you and updates the rates automatically. This ensures you are always paying the correct amount and helps protect you from "honest mistakes" that could lead to non-compliance penalties.

What happens when the ATO's Small Business Superannuation Clearing House (SBSCH) closes?

The ATO has announced the decommissioning of the SBSCH in mid-2026, meaning small businesses will need an alternative way to pay superannuation. e-PayDay FREEPAY® is the perfect alternative. Our integrated partnership with SuperChoice allows you to validate, report, and pay your super directly through the software at no additional cost. While other providers charge for clearing house access, we provide a seamless, $0 transition for businesses moving away from the SBSCH.

Ready to Get Started?

Setting up your payroll doesn't have to be a weekend-long project. Follow these three simple steps:

1. Sign Up: Create your free account at freepay.com.au.

   
   

2. Import: Upload your employee details (or add them manually in minutes).

   
   

3. Lodge: Run your first payroll and lodge with the ATO instantly.

Sign up, it's free!

Verified and Trusted. Join thousands of Australian employers who rely on our ATO-registered and ISO 27001 certified platform for secure, award-winning payroll.

Proudly Australian Made. e-PayDay FREEPAY® is 100% Australian owned, developed, and supported, ensuring your data stays local and compliant with Australian laws.

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We recommend reviewing our disclaimer regarding the content of this post to make informed decisions that are suitable for your individual circumstances.