Building an HR and payroll platform like Employment Hero for Australia costs AUD $80,000 to $280,000 (USD $52,000 to $182,000) depending on scope. A core HR and basic payroll build takes 14-18 weeks at AUD $80,000-$130,000. A full platform with a Modern Awards engine, STP Phase 2 ATO integration, and SuperStream compliance runs AUD $200,000-$280,000 over 32-40 weeks. RaftLabs scopes and prices every AU payroll and HR build at a fixed price before development starts, with delivery in 12-14 week cycles.
Key Takeaways
A core HR and salary payroll build for Australia costs AUD $80,000-$130,000 over 14-18 weeks; a full platform with the Modern Awards engine and STP Phase 2 runs AUD $200,000-$280,000 over 32-40 weeks.
Australia has 121 Modern Awards with quarterly Fair Work rate changes -- hardcoding rates causes non-compliance within a year; you need a rules engine with a content-management maintenance layer.
STP Phase 2 integration with the ATO Business API takes 3-4 weeks in test mode; design the STP data schema from week one or you will retrofit the pay-run data model at significant cost.
The custom build breaks even at roughly 300+ staff paying AUD $75,000+ per year in Employment Hero per-seat fees, or any operation running multi-client PEO payroll or needing white-label branding.
RaftLabs delivers in 12-14 week fixed-price cycles -- the first cycle ships a working salaried payroll platform before the Awards engine budget is committed.
A 400-person aged care provider in Queensland runs staff on five different Modern Awards: the Health Professionals and Support Services Award, the Aged Care Award, the Clerks Private Sector Award, the Restaurant Industry Award for catering staff, and the Building and Construction General On-site Award for maintenance workers. Employment Hero's Award calculator keeps miscalculating overtime on the Health Professionals Award. The penalty rate trigger for shift workers who exceed 10 hours in a single shift is not firing correctly. Their payroll team spends three days every fortnight manually correcting pay runs, cross-referencing the Fair Work pay guide PDFs, and hoping they haven't missed anyone.
That's not an edge case. That's the reason organisations with complex Award coverage start looking at a custom build.
Employment Hero works well for employers with simple payroll, one or two Awards, and a headcount under 100. Once you layer in five Awards, irregular shift patterns, multiple entity types, or a need to run payroll on behalf of other businesses, the platform's approximations stop being close enough.
Cost and timeline at a glance
Building a full HR and payroll platform for the Australian market is a compliance-heavy engineering project, not a standard SaaS build. The table below reflects AUD costs using RaftLabs' rate of USD $35-$40/hr.
Build option
Timeline
Cost (AUD)
Cost (USD approx.)
V1: Core HR + basic payroll (salary employees, no Awards)
The spread within each range is driven by two variables: the number of Awards your platform needs to interpret, and whether you need multi-tenant architecture for PEO or white-label operations. A single-client build with four Awards costs less than a bureau platform running payroll for 40 client companies.
Who actually builds this
Most organisations looking at a custom payroll and HR build are not trying to compete with Employment Hero in the open market. They have a specific operating model that Employment Hero's product can't fit.
Staffing agencies and labour-hire firms running PEO operations are the most common builder. These businesses act as the employer of record for workers placed at client sites. They run pay cycles, manage super contributions, handle workers compensation, and carry the compliance obligations while their clients focus on operations. Employment Hero's multi-client structure isn't designed for this. A custom platform gives them consolidated pay runs across all client accounts, client-facing dashboards showing workforce data, and white-label branding under their own name.
Industry associations with large membership bases in construction, aged care, and hospitality see a different opening: offer HR as a member benefit. They need a platform they own and can brand, not a reseller arrangement with a third-party SaaS. Building their own means they control pricing, keep the member relationship, and tailor the classification coverage to the industries they represent.
Employers of 200 or more staff with complex Award coverage are the build candidate most underserved by off-the-shelf products. At 200 staff, Employment Hero's per-seat pricing can reach AUD $20,000-$40,000 per year. At 500 staff, that number climbs higher. If your mix of classifications is generating pay errors your team corrects by hand every fortnight, the economics start shifting. A custom platform paid off once has a fixed cost. Employment Hero's fee compounds every year as you hire.
Accounting and bookkeeping firms with 20 or more payroll clients have a distribution channel most HR software companies would pay for. A white-label platform lets the firm offer a branded HR product to clients, adds a recurring revenue stream, and separates them from firms that just process the numbers.
Core feature breakdown by module
An AU HR and payroll platform needs eight modules: employee management, digital onboarding (TFN declaration, super choice form, bank details), payroll engine with Modern Awards interpreter, leave management (NES entitlements plus state-by-state long service leave), superannuation (SGC calculation and SuperStream), compliance reporting (STP Phase 2, state payroll tax, WGEA), and optionally performance management and a benefits marketplace at V3.
Employee management
Employee profiles capture all the fields the ATO and Fair Work require: name, tax file number (TFN), date of birth, address, bank details, super fund, employment type (full-time, part-time, casual, contract), position, department, reporting line, and employment start date. The org chart renders reporting structures. Document storage holds employment contracts, position descriptions, Fair Work Information Statements, and policy acknowledgements. Access levels control what each user can see and edit.
Digital onboarding
Onboarding for new AU employees has a specific sequence of forms the employer must collect before the first pay run. A TFN declaration form, a superannuation standard choice form, bank account details, an emergency contact form, and policy acknowledgements for any documents the employer is legally required to provide (including the Fair Work Information Statement). A digital onboarding portal lets new starters complete this on a phone or laptop before their first day. The payroll system receives the completed data automatically, cutting the manual data-entry step.
Payroll
Payroll is where AU complexity concentrates. The engine needs to handle salary employees (fixed weekly or fortnightly amounts), Award-covered employees (base rates from the relevant Award classification, plus penalty rates for evenings, weekends, public holidays, and overtime), and casual employees (base rates plus the 25% casual loading required by the National Employment Standards). Timesheet data feeds in, the engine applies the Award rules, generates the pay run, and produces payslips. STP Phase 2 reporting fires in real-time to the ATO on each pay event.
Leave management
The National Employment Standards define minimum leave entitlements, but leave management in Australia is more complex than the NES alone. Annual leave accrues at 4 weeks per year for full-time staff (pro-rata for part-time), with different accrual rules for shift workers entitled to 5 weeks. Personal and carer's leave accrues at 10 days per year. Parental leave (paid and unpaid) has its own rules. Casual employees have limited leave rights under the NES but gained additional protections under the Fair Work Amendment (Secure Jobs Better Pay) Act 2022 after 12 months of regular work.
Long service leave is state-by-state. Victoria: 7 years qualifying period, 1/60th of service as leave entitlement per year. New South Wales: 10 years, 1/13th of a standard working week per year of service. Queensland: 10 years, 8.67 weeks on completion. Western Australia: 7 years. Each state has its own calculation rules, portability provisions, and payment-in-lieu rules on termination. Building a leave engine that handles all four major states requires state-aware accrual logic, not a single national formula.
Superannuation
The Superannuation Guarantee (SG) contribution rate is 11.5% of ordinary time earnings for 2024-25, rising to 12% in 2025-26. Every AU payroll platform must calculate SGC correctly, let employees choose their super fund or default to the employer's stapled or default fund via the ATO's stapling rules, and pay contributions via a SuperStream-compliant clearing house. SuperStream is the ATO's electronic payment and data standard for super contributions. You either build an integration with an approved clearing house (BPAY, SunGate) or use the ATO's Small Business Super Clearing House (SBSCH) API. The integration takes 2-3 weeks.
Reporting and compliance
An AU payroll platform needs four compliance-facing report types. First: the ATO Single Touch Payroll dashboard showing each employee's year-to-date earnings, tax withheld, and super contributions, reconcilable to STP Phase 2 submissions. Second: state payroll tax reports for NSW (5.45% above $1.2M annual wages as of 2024-25), VIC (4.85% above $700K), QLD (4.75% above $1.3M), and WA (5.5% above $1M). Third: WGEA gender pay equity reporting, mandatory for employers of 100 or more staff, submitted annually to the Workplace Gender Equality Agency. Fourth: workers compensation premium calculation data by state for WorkCover QLD, icare NSW, and WorkSafe VIC.
Performance and benefits (V3)
Check-ins, goal tracking, performance reviews, and 360-degree feedback are standard HR platform features. They're not compliance-driven, which means they can wait for V3 without business risk. A benefits marketplace -- salary packaging, novated leasing, gym membership, and private health -- is a V3 add-on that generates revenue through referral fees from benefit providers.
Build timeline, milestone by milestone
AU payroll platforms fail when teams treat them like a standard SaaS build and discover the compliance complexity mid-project. The timeline below sequences the work to surface risk early.
Weeks 1-3: Schema design and ATO registration
Employee, position, pay structure, and leave balance schemas are the foundation. Get these wrong and you're rewriting data access layers at week 20. ATO software provider registration for STP Phase 2 (obtaining a DSP software ID) takes 4-6 weeks from application to approval. Submit the registration in week 1 so approval lands before you need it.
Weeks 4-8: Employee management and basic onboarding
Digital onboarding flows for TFN declarations, super choice, and bank details. Salary-employee payroll (no Award interpretation yet) running as a fortnightly pay cycle. Document storage and employee profiles. This gives you a working payroll system you can validate with real salary employees before the Award complexity lands.
Weeks 9-14: Modern Awards engine
This is the critical path. A rules parser for Fair Work pay guides translates Award provisions -- base rates per classification level, penalty rate triggers, allowance conditions, overtime rules -- into executable logic. The engine needs a maintenance layer, not hardcoded rates, because the Fair Work Commission publishes updated pay guides every July. Building for a specific set of Awards (say, the Aged Care Award and the Health Professionals Award) takes 4-5 weeks. Each additional Award adds roughly a week.
Weeks 15-18: STP Phase 2 and SuperStream
STP Phase 2 connects to the ATO Business API and fires a pay event report for each pay run. The schema has 50+ fields with strict validation rules. Test mode against the ATO's conformance environment before going live -- the production environment is less forgiving. SuperStream clearing house integration fires super contributions for each pay run.
Weeks 19-22: Timesheet module and leave workflows
Timesheet entry for employees, timesheet approval for managers, and the automated feed from approved timesheets into the pay run engine. Leave request and approval workflows, with accrual balance calculations updating in real-time.
Weeks 23-28: State-specific leave, payroll tax, and WGEA reporting
Long service leave accrual by state, with correct qualifying-period logic for VIC, NSW, QLD, and WA. State payroll tax reports with group-employer aggregation logic (related entities' wages aggregate for threshold testing). WGEA reporting data extracts.
Weeks 29-40 (V3 only): Benefits marketplace, performance, and mobile apps
Salary packaging and novated lease provider integrations. Performance check-in and review workflows. Mobile apps for iOS and Android.
AU compliance requirements: what you're actually building against
AU payroll software must satisfy six regulatory layers that most global HR platforms don't cover: the Modern Awards system (121 industry Awards with quarterly rate changes), STP Phase 2 real-time ATO reporting, SuperStream electronic super contributions, state payroll tax (six different regimes), long service leave state-by-state rules, and WGEA gender pay equity reporting for employers of 100 or more staff.
The Modern Awards system
Australia has 121 Modern Awards covering different industries and occupations. Each Award sets the minimum pay rates, penalty rates, allowances, and conditions for workers it covers. Employment in the construction industry is covered by the Building and Construction General On-site Award. Retail is covered by the General Retail Industry Award. Aged care by the Aged Care Award and (for registered nurses) the Health Professionals and Support Services Award.
Awards are not static. The Fair Work Commission conducts annual wage reviews and publishes updated pay guides each July. Award pay rates also change when new classification determinations are made. A payroll engine that hardcodes rates will be non-compliant within a year. The engine needs a rule-maintenance layer where updated rates can be pushed without a code release.
The failure mode most teams don't anticipate: Award stacking. A worker can be covered by one Award for their ordinary hours and a different set of penalty rate conditions for hours worked in a second role. A casual nurse who also works as a personal care worker in the same aged care facility may have ordinary hours under the Aged Care Award and registered nurse hours under the Health Professionals Award. The system needs to handle this without manual intervention.
STP Phase 2
Single Touch Payroll Phase 2 has been mandatory since 1 January 2022 for most employers, as confirmed by the Australian Taxation Office's STP Phase 2 employer reporting guidelines. Every pay event must report: income type (salary, closely held payee, labour hire, etc.), tax treatment code, disaggregated gross and tax data per income type, allowances broken out by type, child support obligations, and year-to-date figures. The STP Phase 2 schema is more granular than the Phase 1 schema that preceded it. Many platforms built on the Phase 1 schema underestimated the Phase 2 migration effort.
SuperStream
Super contributions must be paid electronically using the SuperStream data standard. You either build a direct integration with an approved clearing house (which handles payment and data transmission to super funds) or connect to the ATO's SBSCH gateway for employers with 19 or fewer employees. For multi-employer or PEO platforms, a commercial clearing house integration (Dunner, SuperChoice, Link Group) is the practical path.
State payroll tax
Each Australian state and territory has its own payroll tax regime with different rates and thresholds.
State / Territory
Rate (2024-25)
Threshold (annual wages)
New South Wales
5.45%
AUD $1,200,000
Victoria
4.85%
AUD $700,000
Queensland
4.75%
AUD $1,300,000
Western Australia
5.5%
AUD $1,000,000
South Australia
4.95%
AUD $1,500,000
Tasmania
4.0%
AUD $1,250,000
Group employer provisions mean related entities' wages aggregate for threshold testing. A holding company and its three subsidiaries test the threshold on their combined payroll, not individually. The platform needs to support entity-level grouping for payroll tax calculations.
WGEA reporting
The Workplace Gender Equality Act 2012 (as amended in 2023) requires employers with 100 or more employees to report gender composition, remuneration, and flexible work arrangements annually to the Workplace Gender Equality Agency. The 2023 amendments expanded disclosure requirements. Employers who build their own HR platform need to extract the required data in the WGEA's submission format.
Technical challenges that will cost you time if you underestimate them
The Awards maintenance problem is the first one. Building an Awards engine is a one-time engineering effort. Maintaining it is an ongoing operational cost. Fair Work updates pay rates every July and makes periodic determinations throughout the year. If the maintenance process requires a developer to update hardcoded values, you have a compliance risk every time Fair Work publishes changes. The engine needs a content-management layer where non-technical staff can update rates without touching the codebase.
According to the Fair Work Commission's Modern Award Review 2023-24, the Commission issued its Annual Wage Review Decision on 3 June 2024 increasing all Modern Award minimum wages by 3.75%, and ran a separate review across four priority topic areas affecting coverage and conditions. Award changes are not a single annual event — they are a rolling regulatory calendar that a well-designed maintenance layer needs to track continuously.
Leave accrual edge cases are the second. Part-time employees who change hours mid-year, casuals who gain leave rights after 12 months of regular engagement, employees who take unpaid parental leave and return to reduced hours -- these scenarios break simple accrual formulas. The Fair Work Amendment (Secure Jobs Better Pay) Act 2022 introduced new casual conversion rights that affect leave eligibility. A reliable leave engine requires explicit test coverage for each of these scenarios before going live.
STP Phase 2 validation is the third. The ATO's production environment rejects malformed submissions with error codes that aren't always self-explanatory. Building against the ATO's conformance test environment (which mirrors the production schema and validation rules) is essential. Expect to spend 3-4 weeks in test mode resolving edge cases before the first live pay run.
Timezone and public holiday logic is the fourth. Australia has eight states and territories, each with its own public holiday calendar. A penalty rate for working a public holiday applies based on where the employee is working, not where the employer is based. A Melbourne-based aged care employer running staff in QLD and NSW needs to apply each state's holiday calendar to the relevant employees.
Ben Thompson, CEO and Co-founder of Employment Hero, has noted publicly that Australia's Modern Award system is "genuinely one of the most complex in the world" for payroll software builders -- a point he made repeatedly as Employment Hero expanded from small business payroll into enterprise and Award-heavy industries. The complexity isn't theoretical. It shows up in every build.
V1, V2, and V3 phased builds
V1: Core HR and basic payroll (AUD $80,000-$130,000, 14-18 weeks)
V1 gives you a working payroll platform for salaried employees: employee profiles, digital onboarding, fortnightly salary pay runs, STP Phase 2 reporting to the ATO, superannuation calculation and SuperStream submission, basic leave management (annual and personal leave accrual), and payslips. This is the foundation. It won't handle hourly employees or Awards, but it's production-ready for a workforce of salaried staff.
The business milestone V1 unlocks: you can run payroll in-house for salaried employees without Employment Hero, and you have a platform to demonstrate to early clients if you're building a PEO or white-label product.
V2: Modern Awards + state compliance (AUD $130,000-$200,000, 22-28 weeks)
V2 adds the Awards engine for your specific Award mix, timesheet integration for hourly and casual employees, overtime and penalty rate calculations, long service leave by state, state payroll tax reporting, and WGEA reporting. After V2, your platform can handle a full Australian workforce on multiple Awards and produce the compliance reports your finance and HR teams need.
The business milestone V2 unlocks: you can offer the platform to complex-Award employers or run payroll bureau operations for client companies. Employment Hero becomes directly comparable on cost and capability.
V3: Full platform (AUD $200,000-$280,000, 32-40 weeks)
V3 adds performance management (check-ins, goals, 360 feedback), a benefits marketplace with salary packaging and novated leasing integrations, and mobile apps for iOS and Android. These features improve retention and generate additional revenue streams, but they don't affect payroll compliance.
The business milestone V3 unlocks: the platform is feature-complete against Employment Hero. You can compete on price, white-label branding, industry-specific Award depth, or the PEO operating model.
Competitive landscape: where Employment Hero falls short
Understanding Employment Hero's weaknesses is the starting point for deciding whether to build custom and, if so, what to build better.
The Award calculator is the first problem. Employment Hero supports Modern Awards, but complex stacking -- multiple Awards for the same employee across different roles or shifts -- generates errors. Healthcare and aged care employers with workers covered by both the Aged Care Award and the Health Professionals Award report consistent miscalculations on overtime. Employment Hero's support team typically resolves these with manual adjustments rather than fixes to the calculation engine itself.
The per-seat pricing model is the second. Employment Hero runs from roughly AUD $8/employee/month on the basic tier to AUD $25-$35/employee/month on Platinum (pricing as of 2024). At 500 employees on Platinum, that's AUD $150,000-$210,000 per year. A custom platform built for AUD $280,000 and paid off over two years is cost-competitive at that scale -- and you own the asset outright.
The white-label gap is the third. Employment Hero has no white-label program. Staffing agencies, accounting firms, and industry associations that want to deliver HR as a branded product under their own name have no path through Employment Hero. This is the clearest structural constraint.
Multi-entity payroll for PEOs is the fourth. Running pay runs across multiple client companies from a single back-end requires a different architecture than running payroll for one employer. Employment Hero's multi-entity features aren't built for high-volume bureau operations.
What to differentiate on:
Industry-specific Award engines (aged care, construction, hospitality) that calculate correctly for complex Award stacking
White-label architecture for accounting firms and industry associations
Multi-tenant PEO mode for labour-hire and staffing agency operations
Fixed per-company pricing rather than per-seat pricing, which is more predictable for employers with variable headcount
Growth and monetisation models
A custom HR and payroll platform opens five revenue paths that Employment Hero's reseller model doesn't allow.
The most direct is per-employee-per-month SaaS pricing: AUD $8-$25/employee/month depending on feature tier. At 1,000 employees across 20 client companies, the basic tier generates AUD $96,000/year. The full-tier equivalent generates AUD $300,000/year. That's the Employment Hero model running under your brand and with your pricing decisions.
PEO and bureau operators typically price differently: a flat fee per pay run (AUD $3-$8 per employee per pay event) plus a small percentage of total payroll processed (0.5-1.5%). A bureau processing pay for 5,000 employees monthly at AUD $4/employee generates AUD $240,000/year from the per-event fee alone, before the percentage add-on.
Accounting firms on a white-label arrangement pay a platform licence fee (AUD $2,000-$5,000/month per firm) plus revenue sharing on add-on features. Twenty firms at AUD $3,000/month is AUD $720,000/year in licence revenue. The firm takes the client relationship. You take a recurring fee.
Benefits marketplace commissions come on top: novated lease providers pay AUD $500-$1,500 per deal, salary packaging administrators pay per-employee fees, and private health and income protection add further referral margin. At 5,000 employees using the marketplace with 15% novated-leasing take-up, this is not an afterthought.
One-time implementation fees (AUD $5,000-$15,000 per client) cover data migration, classification configuration, and staff training. A PEO platform onboarding 10 new clients per year adds AUD $50,000-$150,000 in setup revenue.
Build vs buy: when does the custom build win?
Keep Employment Hero when you have fewer than 100 staff with straightforward Award coverage and no plans to offer HR services to other businesses. Build custom when you need multi-client payroll (PEO or bureau model), have three or more Modern Awards generating calculation errors, need white-label branding, or are paying more than AUD $75,000/year in per-seat fees at 300+ staff.
Keep using Employment Hero when you have fewer than 100 staff, your Award coverage is straightforward (one or two Awards with standard penalty rate structures), and you have no plans to offer HR services to other companies. Employment Hero is good software for that use case. Building custom to solve a problem you can fix with a more careful Employment Hero configuration is expensive over-engineering.
Keep using the Xero Payroll + BambooHR combination if you want best-of-breed payroll and HR but don't need a single platform. Xero's AU payroll engine is accurate. BambooHR's HR module is solid. The integration between them is workable. This path costs less upfront and avoids build risk.
Build custom when any of the following apply:
You're running a PEO, labour-hire, or payroll bureau model and need to process payroll for multiple client companies from a single back-end. Employment Hero's multi-entity model isn't designed for this. The custom architecture pays off once you have 10+ clients.
You have complex Award coverage across three or more Awards and Employment Hero's calculator is generating errors that your payroll team corrects manually. At two days of correction per fortnight, you're spending AUD $15,000-$25,000/year in labour on a problem a correctly built Awards engine would eliminate.
You want white-label branding for a staffing agency, industry association, or accounting firm product. This path doesn't exist with Employment Hero.
You have 300+ employees and your Employment Hero bill has reached AUD $75,000-$100,000/year. A custom platform at AUD $200,000-$280,000 breaks even in 3-4 years and gives you a long-term cost structure you control.
According to Deloitte's 2023 Global Human Capital Trends survey, which polled 10,000 business and HR leaders across 105 countries, only 16% of organisations say their leaders are "very ready" to harness technology to improve workforce outcomes and performance. In Australia, where Modern Awards and STP obligations add compliance layers not present in most global HR platforms, that readiness gap is particularly acute for operators building or selecting payroll technology.
Where AU payroll builds go wrong
Two failure modes come up on almost every AU payroll project.
The first is underestimating the Awards engine. Teams scope two or three Awards in discovery, then realise at week 10 that the six Awards their client base actually uses have materially different penalty rate structures. The original scope doesn't cover it. The build extends by 8-12 weeks. Budget blows out. The failure is in discovery: you need to map every Award your platform will need to interpret before scoping starts, not as an assumption.
The second is STP Phase 2 integration timing. Teams build the payroll engine first and plan to add STP Phase 2 integration at the end. Then they discover that the pay event data model they built doesn't expose the disaggregated fields the STP Phase 2 schema requires. Retrofitting the data model requires rewriting the pay run generator. Design the STP Phase 2 data schema from week one, even if the integration itself ships in week 15. The data model decisions made in the first sprint affect the STP integration more than any other part of the build.
How RaftLabs builds AU payroll and HR platforms
We've built SaaS platforms for industries where compliance is the product, not an afterthought. Enterprise HR, financial services, and regulated-industry software are the builds where upfront architecture decisions matter most. The pattern we use on AU payroll builds: start with the STP Phase 2 data schema and work backwards to the pay run data model, not the other way around.
Our process starts with a two-week scoping engagement. We map your Award mix, your multi-client requirements if you're building a PEO platform, your state coverage for leave and payroll tax, and the ATO integration sequence. That scoping produces a fixed-price contract for V1. No hourly billing, no change-order surprises. You know the number before the first sprint starts.
We deliver in 12-14 week cycles. The first cycle ships a working payroll platform for salaried employees you can run against a real pay run. Subsequent cycles add the Awards engine, STP Phase 2, state compliance reporting, and V3 features in agreed increments.
If you're spending more than AUD $50,000/year on Employment Hero and your payroll team is correcting Award calculations every fortnight, book a 30-minute call. We'll tell you whether the custom build makes financial sense for your specific situation or whether a configuration change would solve it faster.
Ready to scope your AU payroll platform?
Tell us your Award mix, your multi-client requirements, and your current pain points. We will scope the build and give you a fixed price before any development starts.
FAQ
How much does it cost to build a payroll and HR platform like Employment Hero?
Building a core HR and basic payroll platform costs AUD $80,000-$130,000 (USD $52,000-$85,000) over 14-18 weeks. Adding a Modern Awards engine and STP Phase 2 ATO integration brings the total to AUD $130,000-$200,000 over 22-28 weeks. A full platform with benefits marketplace and performance management runs AUD $200,000-$280,000 over 32-40 weeks. RaftLabs quotes a fixed price after scoping so the number is agreed before any code is written.
How complex is building a Modern Awards payroll engine for Australia?
It's the hardest single component in any AU payroll build. Australia has 121 Modern Awards, each with its own classification levels, base pay rates, penalty rates for weekends and public holidays, allowances, and rostering rules. The rules change quarterly when Fair Work publishes updated pay guides. You can't hardcode rates -- you need a rules engine with a maintenance layer. Building the initial Awards engine takes 5-6 weeks. Maintaining it is an ongoing operational cost most teams underestimate.
What is STP Phase 2 and what does it cost to integrate?
Single Touch Payroll Phase 2 (STP Phase 2) is the ATO's real-time payroll reporting scheme, mandatory for all Australian employers since January 2022. Every pay event must be reported to the ATO in real-time via the Business API using the STP Phase 2 data schema, which has 50+ validated fields per pay event. To build it, you need ATO software provider registration and DSP (Digital Service Provider) status. The integration takes 3-4 weeks. The ATO rejects malformed submissions with cryptic error codes, so thorough test-mode validation before going live is essential.
How long does it take to build an AU HR and payroll platform?
A V1 build covering core HR, onboarding, and salary payroll takes 14-18 weeks. Adding the Modern Awards engine, leave management, STP Phase 2, and SuperStream integration extends that to 22-28 weeks. A full platform with timesheet management, state-specific leave rules, WGEA reporting, and a benefits marketplace takes 32-40 weeks. RaftLabs delivers in 12-14 week fixed cycles so clients have working software to test before the full budget is committed.
When should you build a custom HR platform instead of using Employment Hero?
Build custom when you're operating a staffing agency or PEO that needs to run multi-client payroll from one platform, when you have complex Modern Award coverage across multiple Awards and Employment Hero keeps miscalculating overtime, when you need white-label branding that Employment Hero doesn't offer, or when you're an employer with 200+ staff paying more than AUD $30,000/year in Employment Hero per-seat fees. Keep using Employment Hero when you have fewer than 100 staff, straightforward Award coverage, and no ambitions to resell or white-label an HR product.
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Building a core HR and basic payroll platform costs AUD $80,000-$130,000 (USD $52,000-$85,000) over 14-18 weeks. Adding a Modern Awards engine and STP Phase 2 ATO integration brings the total to AUD $130,000-$200,000 over 22-28 weeks. A full platform with benefits marketplace and performance management runs AUD $200,000-$280,000 over 32-40 weeks. RaftLabs quotes a fixed price after scoping so the number is agreed before any code is written.
It's the hardest single component in any AU payroll build. Australia has 121 Modern Awards, each with its own classification levels, base pay rates, penalty rates for weekends and public holidays, allowances, and rostering rules. The rules change quarterly when Fair Work publishes updated pay guides. You can't hardcode rates -- you need a rules engine with a maintenance layer. Building the initial Awards engine takes 5-6 weeks. Maintaining it is an ongoing operational cost most teams underestimate.
Single Touch Payroll Phase 2 (STP Phase 2) is the ATO's real-time payroll reporting scheme, mandatory for all Australian employers since January 2022. Every pay event must be reported to the ATO in real-time via the Business API using the STP Phase 2 data schema, which has 50+ validated fields per pay event. To build it, you need ATO software provider registration and DSP (Digital Service Provider) status. The integration takes 3-4 weeks. The ATO rejects malformed submissions with cryptic error codes, so thorough test-mode validation before going live is essential.
A V1 build covering core HR, onboarding, and salary payroll takes 14-18 weeks. Adding the Modern Awards engine, leave management, STP Phase 2, and SuperStream integration extends that to 22-28 weeks. A full platform with timesheet management, state-specific leave rules (long service leave), WGEA reporting, and a benefits marketplace takes 32-40 weeks. RaftLabs delivers in 12-14 week fixed cycles so clients have working software to test before the full budget is committed.
Build custom when you're operating a staffing agency or PEO that needs to run multi-client payroll from one platform, when you have complex Modern Award coverage across multiple Awards and Employment Hero keeps miscalculating overtime, when you need white-label branding that Employment Hero doesn't offer, or when you're an employer with 200+ staff paying more than AUD $30,000/year in Employment Hero per-seat fees. Keep using Employment Hero when you have fewer than 100 staff, straightforward Award coverage, and no ambitions to resell or white-label an HR product.
Tell us your Award mix, your multi-client requirements, and your current Employment Hero pain points. We will scope the build, give you a fixed price, and deliver in 12-14 week cycles.
Scope and cost agreed before work starts. No surprises. No obligation.
Working prototype within 3 weeks of kickoff.
Pay by milestone. You see progress before each invoice.
60-day post-launch warranty. Bug fixes, UI tweaks, and deployment support. No retainer.