Odoo v19 Payroll Australia: Complete Guide to ATO Compliance and Features

​What is Odoo v19 Payroll for Australia?

Odoo v19 introduces full Australian payroll compliance out of the box for businesses, marking a significant advancement in the platform’s localization capabilities. This new version represents one of the largest payroll localisations globally, featuring approximately 23,000 lines of code specifically developed for Australian regulatory requirements.

The platform progresses towards STP Phase 2 and SuperStream compliance for ATO requirements, positioning itself as a comprehensive solution for modern australian businesses. With the expected official launch at Odoo Experience 2025 in Brussels (September 18-20, 2025), organizations can prepare for early adoption to maximize their return on investment.

This represents a one-stop payroll platform eliminating the need for third-party add-ons and workarounds that previously plagued Australian implementations. The system provides built-in support for Single Touch Payroll, superannuation contributions, and business activity statement reporting—creating a unified solution for all payroll compliance needs.

The automation capabilities significantly reduce manual processes, with businesses reporting up to 40% reduction in payroll processing time. This efficiency gain translates directly into cost savings and improved accuracy, addressing the dual challenges of compliance complexity and operational efficiency that australian businesses face today.

Key advantages include:

• ​Comprehensive ATO Integration:
  Direct submission capabilities for STP and SuperStream.
  
  
• ​Automated Tax Calculations:
  Built-in PAYG withholding and super guarantee computations.
  
  
• ​ Streamlined Reporting:
  Integrated BAS generation and GST management.
  
  
• Enhanced Accuracy:
  Reduced manual data entry through automation.
  
  
• Cost Efficiency:   
  Elimination of third-party compliance tools and services.

​Key Australian Payroll Compliance Features

Single Touch Payroll (STP) Phase 2 compliance with automated ATO submissions represents the cornerstone of Odoo v19’s compliance framework. The system automatically generates submission-ready data for the ATO, reducing administrative burden while ensuring timely compliance with reporting obligations.

​

SuperStream integration via clearing house for superannuation payments provides seamless processing of super contributions without manual intervention. This marks the first time Odoo natively supports direct debit processing for australian superannuation, eliminating the need for separate clearing house arrangements.

The automated GST/BAS compliance features include tax return capabilities and validation checks that ensure accuracy before submission. Built-in ATO security requirements and submission workflows provide confidence that all regulatory standards are met throughout the payroll process.

Support for Employment Termination Payments (ETP) with correct withholding schedules ensures proper handling of complex termination scenarios. The system automatically applies appropriate tax treatments based on termination circumstances, reducing the risk of calculation errors.

Australian-specific tax calculations including PAYG withholding and super guarantee provide comprehensive coverage of all statutory requirements. The system maintains current tax tables and automatically updates calculations as regulations change, ensuring ongoing compliance without manual intervention.

​Employee Setup and Configuration

Australian payroll settings in employee Settings tab include critical compliance fields such as Non-resident status, Tax-free Threshold, and TFN Status. These settings directly impact tax calculations and must be accurately configured to ensure proper withholding and reporting to the ATO. For more resources and courses on Odoo payroll configuration, visit the WAO Group Odoo Courses Homepage.

Private information requirements for compliance encompass Address, Email, Phone, and Date of Birth—all mandatory fields for STP reporting. The system validates this information before allowing payroll processing, preventing submission errors that could result in ATO penalties.

Superannuation account setup requires Member Since date, Member Number, and Fund details to establish proper SuperStream connectivity. This information enables automatic super contributions and ensures compliance with super guarantee obligations.

Super Fund creation involves comprehensive data entry including Address, ABN, Type, and unique identifiers (USI/ESA). The system maintains a database of approved super funds and validates entries against ATO requirements to prevent processing errors.

Contract management supports multiple employment types, including:

• ​Permanent Employment:
  Full-time and part-time arrangements with comprehensive benefits.
    ​
• ​Temporary Employment: ​
  Fixed-term contracts with specified end dates.
  
  
• ​ Seasonal Employment:
  Cyclical arrangements common in agriculture and tourism. 

​Payroll Processing Workflow

Regular payroll runs with batch creation, period selection, and payslip generation streamline the entire payroll process from start to finish. The system supports flexible pay periods including weekly, fortnightly, and monthly cycles, accommodating diverse business requirements across different industries.

​

Out-of-cycle payslips for special circumstances and terminations provide flexibility for handling bonuses, commission payments, and final pay calculations. This capability ensures accurate processing of irregular payments while maintaining compliance with tax and super obligations.

Automated payslip rules computation covers Basic Salary, Super Guarantee, and Taxable Allowances through sophisticated calculation engines. The system applies current tax tables and award rates automatically, reducing the risk of manual calculation errors that can lead to compliance issues.

Work entry types accommodate attendance, overtime, paid leave, and penalty rates according to modern award requirements. The integration with Odoo’s Time Off and Attendances apps ensures accurate capture of all working time, including complex scenarios like public holiday penalties and overtime calculations.

The system includes 63 Australian-specific other input types for allowances, deductions, and benefits, covering everything from travel allowances to salary sacrifice arrangements. This comprehensive coverage ensures businesses can handle diverse compensation structures while maintaining compliance.

Payslip validation creates draft accounting entries for balance sheet and profit & loss accounts, ensuring financial accuracy and supporting integrated business management. This automated journal entry creation eliminates double data entry and maintains consistency across all financial reporting.

The workflow includes multiple validation checkpoints:

• Employee Data Verification:​
  Ensures all required information is complete.
  
  
• ​ Calculation Review:
  Validates tax and super computations against current rates.
  
  
• Compliance Checks:
  Confirms STP and SuperStream requirements are met.
  
  
• ​ Approval Workflows:
  Supports management review before final processing.
  
  
• ​ Audit Trails:
  Maintains comprehensive records for compliance and review purposes.

​ATO Compliance and STP Submissions

STP submission requirements mandate reporting on or before payday, before processing payments to employees. Odoo v19 automates this timeline management, preventing accidental non-compliance through built-in workflow controls that enforce proper sequencing of payroll activities.

STP record warnings and activities for responsible users provide proactive alerts when submission requirements approach or deadlines pass. The system maintains comprehensive payslip summaries that support easy review and verification before ATO submission, reducing the risk of errors in reported data.

Terms and conditions review before ATO submission ensures users acknowledge their reporting responsibilities and understand the compliance implications of their actions. This built-in governance feature provides additional protection against inadvertent compliance violations.

YTD values import capabilities support employees switching from other STP software, ensuring seamless transitions without compliance gaps. This feature is particularly valuable during system migrations, where maintaining accurate year-to-date reporting is essential for both employee records and ATO compliance.

Previous BMS ID and Payroll ID configuration enables ATO employee record recognition across system changes. This functionality ensures continuity in employee reporting history, preventing duplicate records or missing data that could trigger ATO inquiries.

STP finalisation workflows are currently in development for Phase 2 compliance, with completion expected as part of the ongoing enhancement program. This will provide end-to-end STP management, from initial reporting through final annual declarations.

Key submission features include:

• ​Automated Scheduling:
  Submissions occur automatically based on pay cycles. 
   ​
• ​Validation Checks:
  Pre-submission verification of all required data elements.
  
  
• ​ Error Handling:
  Clear messaging and resolution guidance for submission issues.
  
  
• ​Audit Logging:
  Complete records of all ATO interactions and responses.
  
  
• ​ Backup Procedures:
  Alternative submission methods for system availability issues.

​Superannuation Management

SuperStream compliance via clearing house partnership enables direct debit processing of superannuation contributions, representing a significant advancement in automated super management. This integration eliminates manual super payment processes while ensuring timely compliance with super guarantee obligations.

​

Quarterly or more frequent super payment processing provides flexibility to meet diverse business cash flow requirements while maintaining compliance with minimum payment schedules. The system supports both quarterly standard payments and more frequent voluntary contributions as business circumstances require.

Payment locking prevents additions from subsequent payslips once super payments are processed, ensuring accurate reconciliation and preventing double-payment scenarios. This control mechanism maintains data integrity throughout the super payment cycle.

Super contribution tracking and matching capabilities provide comprehensive visibility into employee super accounts and payment history. The system maintains detailed records that support both internal management reporting and external compliance verification.

Automatic super guarantee calculations based on OTE (Ordinary Time Earnings) ensure accurate contribution amounts without manual intervention. The system applies current super guarantee rates and automatically adjusts for salary sacrifice arrangements and other special circumstances.

Super fund management includes comprehensive validation of ABN and USI/ESA identifiers, ensuring payments reach the correct funds without delays or errors. The system maintains updated fund information and validates all super fund details before processing payments.

Advanced features support complex super scenarios:

• Salary Sacrifice:
  Automatic calculation and reporting adjustments.
  
  

• ​  Multiple Funds:
  Support for employees with multiple super accounts.
  
  
• Contribution Splitting:
  Handling of spouse and voluntary contributions.
  
  
• ​ Clearing House Integration:
  Seamless payment processing and confirmation.
  
  
• ​ Compliance Monitoring:
  Automated alerts for payment obligations and deadlines.

​Employee Termination and Final Pay

Contract End Date, Cessation Type Code, and Termination Type field completion ensure proper classification of employment endings for STP reporting. Accurate termination coding is essential for ATO compliance and affects both tax withholding and super obligations during the final pay process.

Automated unused leave entitlement calculations with manual edit options provide flexibility while maintaining accuracy in final pay determination. The system calculates accrued annual leave, long service leave, and other entitlements based on award requirements and employment history.

Out-of-cycle final pay payslip generation supports immediate processing of termination payments without waiting for regular pay cycles. This capability ensures departing employees receive timely final payments while maintaining compliance with employment law requirements.

Employment Termination Payment (ETP) processing with correct withholding applies appropriate tax treatment based on the nature of termination payments. The system distinguishes between genuine redundancy, early retirement, and other termination scenarios to ensure proper tax calculations.

​

Leave withholding adjustments based on termination circumstances account for various scenarios including resignation during probation periods, dismissal for cause, and voluntary departures. The system applies relevant employment law provisions to determine appropriate leave payouts.

Essential termination processing steps include:

• ​Contract End Date Entry:
  Specify exact termination date and circumstances.. 
   ​
• ​Leave Calculation:
  Automatic computation of all accrued entitlements.
  
  
• ​ ETP Assessment:
  Determination of eligible termination payment components.
  
  
• Tax Withholding:
  Application of appropriate tax rates and thresholds.
  
  
• ​ Super Processing:
  Final super guarantee and any ETP super components.
  
  
• ​ STP Reporting:
  Immediate submission of termination details to ATO.

​Integration with Other Odoo Apps

Time Off app native integration for leave management and work entry population creates seamless workflows between HR and payroll functions. Employee leave requests automatically generate appropriate work entries and payroll adjustments, eliminating manual data transfer and reducing processing errors.

​

Expenses app integration for payslip reimbursements and vendor bill matching streamlines employee expense processing. Approved expenses automatically appear in payroll processing for reimbursement, while vendor bills can be matched against expense claims for accurate accounting treatment.

Attendances and Planning apps provide comprehensive workforce management through integrated time tracking and scheduling. These integrations ensure accurate capture of worked hours, overtime, and penalty rates according to award requirements and business policies.

Employment Hero integration option supports existing users through the l10n_employment_hero module, facilitating gradual migration or hybrid operation during transition periods. This flexibility allows businesses to maintain continuity while gradually moving to full Odoo functionality.

API synchronization for journal entries ensures cross-platform compatibility with existing accounting systems. This capability supports businesses using multiple systems during transition periods or those requiring integration with specialized financial applications.

Key integration benefits include:

• Reduced Data Entry: 
  Automatic transfer of information between modules.
  
  
• ​ Improved Accuracy:
  Elimination of manual transcription errors.
  
  
• Streamlined Workflows:
  Seamless employee self-service capabilities.
  
  
• ​ Enhanced Reporting:
  Consolidated data across all HR functions.
  
  
• ​ Cost Efficiency:
  Reduced need for separate specialized applications.

​Current Limitations and Restrictions

Odoo v19 payroll is not recommended for Foreign Employment Income and actors/performers tax categories due to specialized withholding requirements that fall outside standard payroll processing. These unique tax situations require specialized handling that the current system doesn’t support comprehensively.

​

Death benefits reporting and WPN reporting obligations are not supported in the current release. Businesses requiring these specialized reporting capabilities should consult with certified Odoo partners to determine alternative solutions or timeline for future development.

Limited support exists for allowances with varied withholding rates, particularly cents per kilometre and travel allowances with complex calculation requirements. While basic travel allowances are supported, sophisticated mileage calculations may require customization or manual processing.

Adjustment flows and finalisation are not yet submitting data to ATO as part of Phase 2 development timeline. This functionality is under active development and will be included in future updates as the STP Phase 2 implementation reaches completion.

Contact Odoo is required to verify specific Australian payroll requirement support for unique business circumstances. The development team maintains active communication with australian businesses to prioritize enhancement requests and ensure comprehensive coverage of regulatory requirements.

Important considerations for implementation include:

• Industry Requirements: 
  Verify support for specific award and industry needs.
  
  
• ​ Reporting Obligations:
  Confirm all regulatory reporting requirements are met.
  
  
• Customization Needs:
  Assess requirements for business-specific modifications.
  
  
• ​ Timeline Planning:
  Allow for potential workarounds during transition periods.
  
  
• ​ Professional Support:
  Engage certified partners for complex implementations.

​Implementation Considerations for Australian Businesses

Early adoption is recommended for smoother implementation and better ROI, as businesses can influence ongoing development priorities while benefiting from competitive advantages in payroll efficiency. Organizations implementing Odoo v19 during its initial release period often experience more favorable pricing and enhanced support during the rollout phase.

Professional implementation support is available through certified Australian partners who understand local regulatory requirements and business practices. These partners provide essential expertise in data migration, system configuration, and staff training to ensure successful deployment.

Migration planning from existing payroll systems requires careful attention to YTD value imports and historical data preservation. The system supports comprehensive data import from major platforms including Xero, MYOB, and Employment Hero, ensuring continuity in employee records and compliance reporting.

​

Staff training requirements encompass new workflows and compliance processes that differ from traditional payroll systems. Successful implementations typically include comprehensive training programs covering both technical system operation and regulatory compliance procedures.

Customization options support industry-specific workflows and business needs through Odoo Studio and development frameworks. The platform’s flexibility allows businesses to adapt the system to unique operational requirements while maintaining core compliance functionality.

Cost savings compared to traditional ERP systems and third-party payroll solutions can be substantial, with many businesses reporting 30-50% reductions in total payroll management costs. These savings result from eliminated third-party fees, reduced manual processes, and improved operational efficiency.

Implementation timeline considerations include:

• ​Planning Phase (4-6 weeks):
  Requirements analysis and system design. 
  ​
• ​Configuration Phase (6-8 weeks):
  System setup and customization.
  
  
• ​ Data Migration (2-4 weeks):
  Historical data import and validation.
  
  
• Testing Phase (3-4 weeks):
  Comprehensive system and compliance testing.
  
  
• ​ Training Period (2-3 weeks):
  Staff education and change management.
  
  
• ​ Go-Live Support (2-4 weeks):
  Intensive support during initial operation.

​Future Roadmap and Development

Official announcement is pending for full STP Phase 2 compliance completion, with Odoo maintaining active communication with ATO representatives to ensure comprehensive regulatory coverage. The development timeline aligns with evolving government digital initiatives and regulatory requirements.

​

SuperStream clearing house integration finalization is expected to enhance direct debit capabilities and provide additional payment options for businesses with complex superannuation requirements. This enhancement will further streamline super payment processes and reduce administrative overhead.

Adjustment and finalisation workflows will include actual ATO data submission capabilities as Phase 2 development reaches completion. This functionality will provide end-to-end STP management from initial reporting through annual finalisation, ensuring complete compliance coverage.

Continued updates for evolving Australian government digital initiatives ensure the system remains current with regulatory changes and new compliance requirements. Odoo’s commitment to australian market support includes ongoing investment in localisation development and regulatory alignment.

Enhanced reporting and analytics for business intelligence and compliance provide decision makers with deeper insights into workforce costs, compliance status, and operational efficiency. These advanced analytics support strategic planning and risk management across HR and finance functions.

Mobile experience improvements for on-the-go payroll management will provide managers and employees with enhanced self-service capabilities through responsive design and native mobile applications. This development supports modern workforce expectations and flexible working arrangements.

The future vision includes:

• Predictive Analytics: 
  AI-powered insights for workforce planning and compliance risk management.
  
  
• ​ Enhanced Automation:
  Further reduction in manual processes through machine learning.
  
  
• Regulatory Intelligence:
  Automatic updates for changing compliance requirements.
  
  
• ​ Industry Specialization:
  Deeper support for specific sectors and award structures.
  
  
• ​ Global Integration:
  Seamless multi-country payroll for australian businesses with international operations.

​Conclusion

Odoo v19 payroll australia represents a transformational approach to australian payroll compliance, delivering comprehensive ATO integration and automated compliance tools that eliminate traditional pain points for australian businesses. With robust product variant management capabilities, native STP Phase 2 support, and integrated SuperStream processing, the platform addresses every aspect of modern payroll compliance while supporting business growth through enhanced efficiency and fewer errors. 

​

The system’s extensive feature set—from automated payroll taxes and superannuation payments handling to support for multiple income streams and comprehensive financial processes—positions it as an essential tool for companies seeking to modernize their HR operations. The integration with other Odoo apps creates a unified platform that supports everything from electronic invoicing to structured data management, enabling better decision-making across all business functions.

For salaried employees and HR teams alike, the employee self-service capabilities accessible through the settings menu streamline routine tasks while maintaining compliance with ato requirements. The elimination of manual processes through ai capabilities and automated workflows delivers real impact on operational efficiency, while default headers and standardized reporting ensure consistency across all payroll activities.

The platform’s ability to handle complex scenarios—from travel allowances and salary sacrifice arrangements to extra hours tracking and business activity statement generation—makes it suitable for diverse australian businesses across industries. Whether you’re managing a single account or supporting hundreds of employees, Odoo v19’s scalable architecture grows with your company while maintaining the highest standards of compliance and accuracy.

​

As businesses evaluate their payroll options, the comprehensive nature of Odoo v19’s australian localisation—including its quote builder functionality, extensive reporting capabilities, and seamless integration with accounting and sales modules—presents a compelling value proposition. The platform’s future ready design ensures long-term viability while delivering immediate benefits in efficiency, compliance, and cost management.

​

Ready to transform your payroll processes and ensure complete ATO compliance? Contact a certified Odoo partner today to begin your implementation journey and discover how Odoo v19 can revolutionize your australian payroll operations.

​