Australia's Accounting-Ledr Odoo Payroll Partner
STP Phase 2 compliant. SuperStream ready. 63 Australian-specific input types. Implemented by qualified accountants who understand Australian payroll — not just software.
STP Phase 2 Compliant
SuperStream Ready
PAYG Withholding
Fair Work Leave
63 AU Input Types
OVERVIEW
What Is Odoo Payroll Australia?
Odoo Payroll is the Australian payroll module within the Odoo ERP platform. It manages the complete payroll workflow for Australian businesses: from work entries and leave data through to payslip generation, Single Touch Payroll submission to the ATO, and superannuation payments via SuperStream.
The payroll module is built on an Australian payroll localisation designed to meet Australian regulatory requirements. This is not a generic payroll engine with Australian tax tables bolted on — it is purpose-built for Australian payroll compliance.
Odoo v19 includes over 23,000 lines of Australian payroll code. This localisation covers STP Phase 2 reporting, superannuation calculations, leave loading, penalty rates, employment termination payments, PAYG withholding, Medicare levy surcharge, and 63 Australian-specific input types for allowances and conditions.
WAO Group implements Odoo payroll for Australian businesses across manufacturing, wholesale, retail, professional services, and more. As an accounting-led partner, we have the expertise to configure Odoo payroll correctly from day one.
This page is for Australian businesses evaluating Odoo for payroll, looking to replace a current system, or seeking to address current limitations in their existing payroll setup.
Purpose-Built for Australian Compliance
Purpose-built for Australia with over 23,000 lines of code, Odoo handles your entire payroll workflow. From STP Phase 2 to complex penalty rates, it guarantees complete ATO compliance.
✔ STP Phase 2
✔ SuperStream
✔ PAYG Withholding
✔ Leave Loading
✔ Penalty Rates
✔ Payroll Tax
✔ ETP Compliance
✔ Medicare Levy
✔ Salary Sacrifice
✔ Long Service Leave
ATO REPORTING
Single Touch Payroll (STP Phase 2) Compliance
STP Phase 2 is mandatory for all Australian employers. Odoo generates STP data automatically during every pay run and submits it directly to the ATO.
What Is Single Touch Payroll?
Single Touch Payroll is the mandatory ATO reporting standard for Australian employers. Single Touch Payroll Phase 2 mandates that businesses report disaggregated payroll data to the ATO with every pay run.
Under STP Phase 2, businesses must report gross wages broken into disaggregated income types, tax treatment code, employment type, cessation type code, PAYG withholding, and superannuation liability — on or before each pay day.
For Australian businesses running weekly, fortnightly, or monthly payrolls, every pay run triggers an ATO submission. Non-compliance attracts ATO penalties.
STP Phase 2 — What Odoo Reports
01.
Cessation Type Code
Tax free threshold, no threshold, working holiday maker, senior Australian, and more.
02.
Cessation Type Code
Tax free threshold, no threshold, working holiday maker, senior Australian, and more.
03.
Cessation Type Code
Tax free threshold, no threshold, working holiday maker, senior Australian, and more.
04.
Cessation Type Code
Tax free threshold, no threshold, working holiday maker, senior Australian, and more.
How Odoo Handles STP Phase 2
Odoo generates STP data automatically during each pay run. The payroll module captures all required ATO fields — income type, tax treatment code, employment type, cessation type code, previous BMS ID, and TFN status — and produces submission-ready STP data.
STP data is submitted directly to the ATO via Odoo's STP software connection. Odoo maintains comprehensive audit logs of all ATO submissions, giving you a traceable record of every STP lodgement.
STP data is submitted directly to the ATO via Odoo's STP software connection. Odoo maintains comprehensive audit logs of all ATO submissions, giving you a traceable record of every STP lodgement.
The system handles STP finalisation at the end of the financial year, replacing the need for payment summaries. For businesses migrating from a previous system, the previous BMS ID ensures continuity of ATO reporting history.
05.
PAYG Withholding
Reported per pay run, remitted to ATO on the applicable lodgement cycle.
SUPERANNUATION
Superannuation Management in Odoo Payroll
Odoo calculates super contributions automatically at 12% of ordinary time earnings and supports SuperStream compliance for all super fund payments.
Super Guarantee Calculations
Odoo calculates super contributions at the legislated 12% of ordinary time earnings per pay run. Ordinary time earnings exclude overtime and apply correctly to leave loading, allowances, and bonuses. Super contributions are tracked and matched in Odoo — giving you a full audit trail of every superannuation payment.
SuperStream Compliance
Odoo supports SuperStream compliance for all superannuation payments. Each employee record stores complete super fund details: fund ABN, USI, and member number. Super contributions are batched and submitted through a clearing house, meeting SuperStream requirements for electronic payment and data messaging.
Financial Reporting Integration
Superannuation payments flow through to the balance sheet via journal entries, keeping your financial reporting accurate. Super liabilities are visible in the accounting module in real time, eliminating separate reconciliation between your payroll and accounting systems.
Multiple Funds
Odoo supports multiple funds across your workforce. Each employee's super fund details are stored against their employee record. Contributions are submitted per fund via the clearing house. Superannuation payments are cleared via direct debit processing, creating a seamless workflow from pay run to super fund payment.
COMPLIANCE
Australian Payroll Compliance Features
Odoo's Australian payroll module covers every compliance obligation — PAYG withholding, Medicare levy surcharge, salary sacrifice, employment termination payments, and more.
Employment Termination Payments
Employment termination payments (ETPs) require specific tax treatment under Australian tax law. Odoo applies the correct tax treatment to termination payments including unused annual leave, redundancy payments, and genuine redundancy payments.
The cessation type code is reported via STP when employment ends, covering resignation, redundancy, retirement, and other cessation types.
Odoo calculates the correct withholding on each component of the employment termination payment in accordance with ATO requirements.
PAYG Withholding
Odoo calculates PAYG withholding for each employee based on their tax treatment code and applicable withholding rate. Tax treatment codes cover all Australian employee circumstances:
- Employees who have claimed the tax free threshold.
- Employees who have not claimed the tax free threshold.
- Senior Australians and pensioners.
- Working holiday makers.
- Employees with TFN status withheld or no TFN declared.
The correct withholding rate is applied automatically. PAYG withholding is reported via STP with every pay run and remitted to the ATO on the applicable lodgement cycle
Medicare Levy and Medicare Levy Surcharge
Odoo applies the Medicare levy based on each employee's income and circumstances. The Medicare levy surcharge is handled where applicable, ensuring accurate PAYG withholding for all employees. Medicare levy reduction applies automatically for employees below the applicable income threshold.
Payroll Tax Obligations
Payroll tax is a state-based obligation for Australian businesses that exceed the applicable threshold. Odoo's payroll data reporting provides the Australian payroll data required to calculate and report payroll tax obligations accurately across all states and territories.WAO Group can assist with payroll tax reporting as your Australian payroll grows.
Salary Sacrifice
The payroll module handles salary sacrifice arrangements including superannuation salary sacrifice and other pre-tax benefit deductions. Salary sacrifice reduces the employee's taxable income and is reported correctly via STP — as salary sacrificed to super or as reportable fringe benefits where applicable.
Audit Logs for ATO Compliance
Odoo maintains comprehensive audit logs for all payroll records. Every change to an employee record, payslip, or pay run is tracked — capturing who made changes, what was changed, and when. This audit trail is essential for ATO compliance and Fair Work inspections.
LEAVE
Leave Management and Leave Loading
Odoo integrates leave management directly with payroll, ensuring leave entitlements, accruals, and leave loading are accurate and aligned with Fair Work obligations.
Annual Leave
Annual leave accrues automatically based on each employee's employment type and the applicable Modern Award or enterprise agreement. Annual leave balances appear on every payslip. Leave requests flow through the Time Off app, with approved leave automatically generating work entries that feed into the pay run.
Leave Loading
Leave loading of 17.5% is applied to annual leave taken by employees entitled to it under their Modern Award or employment contract. Odoo calculates leave loading automatically during payslip generation. Where an employee's ordinary pay is higher than their leave loading entitlement, Odoo applies the higher amount in accordance with the relevant Award clause.
Leave Management Integration
Leave requests submitted through the Time Off app flow automatically into payroll. Approved leave generates the appropriate work entries, with the correct leave type, leave loading, and pay calculation applied without manual intervention.
This eliminates manual leave entry and reduces payroll error risk.
All Australian Leave Types
Odoo manages all common Australian leave types including annual leave with and without leave loading, personal and carer's leave, compassionate leave, long service leave, unpaid leave, paid parental leave, and community service leave. Unpaid leave is excluded from ordinary time earnings for super purposes. Long service leave is calculated per applicable state legislation.
VINPUT TYPE
63 Australian-Specific Payroll Input Types
One of Odoo's most powerful features for Australian payroll is its 63 Australian-specific input types. These cover the full range of Australian payroll allowances, entitlements, conditions, and deductions..
63 Input Types
Covering every Australian payroll condition.
Ordinary Hours
✔
Overtime & Penalty Rates
✔
Travel Allowances
✔
Meal & Accommodation
✔
Shift Loadings
✔
Salary Sacrifice
✔
Car & Tool Allowances
✔
Award-Specific Conditions
✔
What Input Types Cover
- Ordinary hours and overtime.
- Penalty rates (weekend, public holiday, shift work).
- Travel allowances.
- Meal and accommodation allowances.
- Tool allowances and car allowances.
- Shift loadings.
- Allowances under specific Modern Awards.
- Salary sacrifice deductions.
- Employee reimbursements.
Input types are fully customisable. WAO Group configures Odoo payroll to match your specific Award conditions, enterprise agreement, or employment contracts — critical for businesses with complex obligations across multiple employee classifications.
Penalty Rates and Overtime
Australian payroll compliance requires accurate penalty rate calculations for overtime, weekend work, public holidays, and shift loadings. Odoo supports configurable penalty rates mapped precisely to your Award obligations. Work entries record ordinary hours and all penalty rate hours, feeding directly into payslip generation and STP reporting.
Travel Allowances
Travel allowances paid below the ATO's reasonable amounts are not subject to PAYG withholding. Odoo can be configured to apply the correct withholding treatment to each allowance type automatically — ensuring compliance without manual calculation.
ATO REPORTING
The Odoo Pay Run Workflow
The Odoo pay run covers the complete payroll processing cycle — from timesheet approval through to payslip generation, STP submission, and superannuation payment via SuperStream.
01.
Work Entry Import
Work entries are generated from the Attendances app or imported from timesheets, capturing ordinary hours, overtime, and penalty rate hours.
02.
Leave Data Integration
Leave data flows automatically from the Time Off app. Approved leave generates the appropriate work entries with the correct leave type and leave loading applied.
03.
Payroll Input Review
Payroll inputs are reviewed including manual adjustments, additional allowances, and travel allowances for the period.
04.
Payslip Generation
Payslips are generated individually or in batches. Odoo calculates gross pay, PAYG withholding, Medicare levy, salary sacrifice, super, and net pay automatically. Payslips are retained as employee records within Odoo.
05.
STP Submission
STP data is generated and submitted to the ATO via Odoo's STP software connection. Subsequent payslips reflect adjustments via adjustment flows for back pay or corrections.
06.
SuperStream Submission
Superannuation contributions are batched for SuperStream submission via the clearing house, meeting quarterly ATO requirements.
07.
Accounting Integration
Journal entries are created automatically in the accounting module for all payroll transactions — wages, PAYG withholding liabilities, super liabilities, and net pay posted to the balance sheet.
Multiple Pay Frequencies
Odoo supports all common Australian pay frequencies: weekly, fortnightly, and monthly. Different employee groups — salaried staff and hourly employees, for example — can operate on different pay schedules within the same payroll module.
Payroll processing time is efficient once the system is configured correctly. WAO Group configures Odoo payroll to minimise processing time even for businesses with complex pay structures.
Payroll Data and Financial Reporting
Every pay run generates journal entries for wages expense, PAYG withholding liabilities, superannuation liabilities, and net pay.
These post automatically to the balance sheet and profit and loss accounts, keeping your financial reporting current with every pay run.
Vendor Bills and Expense Reimbursements
These generate the appropriate journal entries in the accounting module, treated as vendor bills or direct debit processing depending on your preferred workflow.
Integration with Other Odoo Apps
For businesses that track labour costs by project, the Planning app integration enables workforce scheduling linked to project management, supporting accurate project profitability reporting alongside payroll processing.
COMPARISON
Odoo Payroll vs Employment Hero
Many Australian businesses compare Odoo and Employment Hero for payroll and HR. Here's how they differ for businesses with broader ERP needs.
Feature | Odoo Payroll (WAO Group) | Employment Hero |
STP Phase 2 | ✔ Built-in | ✔ Built-in |
SuperStream | ✔ Built-in | ✔ Built-in |
Full ERP Integration | ✔ Native — one system | ✘ Separate platform |
Accounting Integration | ✔ Native payroll journal entries | Via Xero / MYOB integration |
Inventory & Operations | ✔ Full Odoo ERP | ✘ HR / payroll only |
Australian Input Types | ✔ 63 AU-specific types | Limited customisation |
Payroll Compliance Advice | ✔ WAO Group (accounting-led) | Software only |
Best For | Businesses needing full ERP + payroll | Standalone HR + payroll needs |
Odoo Payroll is a module within a full ERP platform. Businesses using Odoo for accounting, inventory, sales, and operations gain fully integrated payroll where payroll data flows natively into every other system — no API connectors, no data syncs, no duplicate entry.
Employment Hero is a strong standalone HR and payroll platform with robust Australian payroll compliance features. However, it operates as a separate system that requires integration with accounting software like Xero or MYOB, adding complexity and potential for data discrepancies.
WAO Group helps Australian businesses evaluate both options in the context of their specific business needs, current system limitations, and long-term growth plans.
HONEST ASSESSMENT
Current Limitations of Odoo Payroll Australia
An honest assessment of any payroll software includes its current limitations. Here's what to know about Odoo Payroll — and how WAO Group addresses each one.
Modern Award Complexity
Odoo supports 63 input types for Australian payroll conditions, but complex award interpretation — particularly for awards with multiple classification levels and loaded rates — requires careful configuration by an experienced implementer. WAO Group's accounting background ensures this is done correctly.
STP Submission Pathway
Odoo submits STP data via a registered STP software intermediary rather than a direct ATO channel. This is a common arrangement in the Australian payroll market — it does not affect compliance, but businesses should understand the submission pathway.
Data Migration From a Previous System
Migrating payroll data — including employee records, leave balances, STP history, and previous BMS ID — requires careful mapping and testing. Rushed migrations can create compliance gaps. WAO Group manages data migration as part of every Odoo payroll implementation to ensure continuity.
Payroll Processing Time for Large Workforces
For businesses with 200+ employees or highly complex payroll structures, payroll processing time depends on system configuration and hardware. WAO Group configures Odoo payroll to optimise performance for your specific workforce size and pay structure.
ATO REPORTING
Implementing Odoo Payroll with WAO Group
WAO Group is Australia's accounting-led Odoo partner. Unlike IT-led implementers, our team includes qualified accountants and payroll specialists who understand Australian payroll compliance — not just software configuration.
01.
Payroll Requirements Discovery
We map your current system, Awards, pay structure, payroll compliance obligations, and current limitations to be addressed.
02.
System Configuration
We configure all 63 input types relevant to your business, tax treatment codes, pay schedules, superannuation settings, and leave rules.
03.
Data Migration
We migrate employee records, leave balances, and historical payroll data from your previous system — including previous BMS ID for STP continuity.
04.
STP & SuperStream Setup
We register your business, configure STP software, test ATO submission, and set up your clearing house and super fund details.
05.
Training
We train your payroll team on pay run processing, leave management, STP submissions, and payroll compliance reporting.
06.
Training
We train your payroll team on pay run processing, leave management, STP submissions, and payroll compliance reporting.
Why Choose WAO Group for
Odoo Payroll?
Our accounting background means we advise on payroll compliance, not just software use. We understand that payroll compliance mistakes are costly — for ATO penalties, Fair Work liability, and employee trust.
Our accounting-led approach means we configure Odoo payroll correctly the first time.
We have implemented Odoo payroll for Australian businesses across manufacturing, wholesale distribution, professional services, retail, and healthcare.
We understand Australian payroll at the same level your accountant does — because we are accountants who are also Odoo experts.
"We configure
Odoo Payroll correctly
the first time."
Book a Free Payroll Discovery Call
FAQ
Frequently Asked Questions
Common questions about Odoo Payroll Australia and WAO Group's implementation services.
Yes. Odoo generates STP data automatically during each pay run and submits it to the ATO. STP Phase 2 is fully supported including disaggregated income reporting, tax treatment codes, employment type, and cessation type codes.
Yes. Odoo stores complete super fund details — fund ABN, USI, and member number — for each employee and supports batch superannuation payments via a clearing house for SuperStream compliance. Contributions are submitted electronically to multiple funds across your workforce.
Yes. WAO Group handles the full data migration from your previous system including employee records, leave balances, and historical STP data with previous BMS ID. We manage the transition to ensure no gap in payroll compliance or ATO reporting continuity.
Yes. Odoo calculates leave loading at 17.5% for eligible employees and supports configurable penalty rates for overtime, weekend work, and public holidays. WAO Group configures these to match your specific Award obligations or enterprise agreement.
Odoo supports weekly, fortnightly, and monthly pay frequencies. Different employee groups can run on different pay schedules within the same payroll module. Payroll processing time is efficient once the system is correctly configured by an experienced implementer.
Odoo provides the payroll data required for state-based payroll tax reporting. WAO Group can assist with payroll tax calculations and reporting across all Australian states and territories as your Australian payroll grows.
Odoo Payroll integrates natively with Odoo's accounting module — all payroll journal entries post automatically with no manual data transfer required. For businesses currently using Xero or MYOB, WAO Group can advise on migration options as part of a broader Odoo implementation.
WAO Group is Australia's accounting-led Odoo partner. Our team includes qualified accountants and payroll specialists — not just IT consultants. This means we configure Odoo payroll to meet Australian payroll compliance requirements correctly from day one, advise on compliance questions that go beyond the software, and help you avoid the costly mistakes that come from IT-only implementations.
If You Have Any Questions, Contact Us.
Ready to Run Compliant Odoo Payroll?
Book a Free Payroll Discovery Call.
We'll assess your payroll requirements, review your compliance obligations, and show you exactly how Odoo payroll works for Australian businesses like yours.