Which ERP Systems Are Actually ATO-Compliant? STP Phase 2, BAS, SuperStream and PEPPOL Explained

Published: 7 August 2026 · Last reviewed: 7 August 2026 · By Sherman Hsieh — Founder & Editor-in-Chief, Business-Software.com; former Siebel Systems executive.

The short answer

Every ERP sold in Australia will tell you it’s “ATO-compliant”. The truthful version has tiers — and the tier decides your project cost.

• Native: MYOB Acumatica, Wiise, TechnologyOne and Pronto Xi build Australian payroll and statutory reporting into the product itself.
• Via certified add-ons: Business Central and NetSuite handle GST/BAS natively but deliver STP Phase 2 payroll through certified third parties — capability (and cost) depends on the pairing, not the platform.
• Version-dependent: Odoo is compliant as of version 19 per its official documentation; earlier versions don’t lodge with the ATO. Always confirm the version you’re actually being quoted.
• The matrix below shows STP Phase 2, GST/BAS, SuperStream and PEPPOL status for every system, with native/add-on/absent called out per cell.

The compliance matrix

Native = built into the core product. Add-on = certified third-party product required. Partner = handled via connected products or localisation packs. Everything in this table should be re-verified with the vendor for your version and modules before you sign; certifications and product scopes change.

What each requirement actually demands of an ERP

STP Phase 2

Single Touch Payroll Phase 2 is the hard one; it’s the reason this article splits vendors into native and add-on. Phase 2 requires payroll data disaggregated to the ATO’s taxonomy (income types, cessation reasons, itemised allowances, salary sacrifice) reported every pay event. A system either has an ATO-whitelisted payroll engine or it doesn’t; “we integrate with payroll providers” means the compliance burden lives in the integration. That’s fine, as long as you’ve scoped and priced it as real work.

GST and BAS

Table stakes, but quality varies wildly. The test isn’t whether the system “supports GST” (everything does); it’s whether it produces a BAS your agent can lodge without a spreadsheet intermediary: correct label mapping (G1–G20, 1A/1B), mixed-supply handling, and RCTI support if you use them. Ask to watch a BAS prepared end-to-end in the demo. The vendors who can’t, won’t.

SuperStream

Super contributions must flow through the SuperStream standard, in practice via a clearing house or an integrated payroll engine’s gateway. Native-payroll systems bundle this; add-on arrangements inherit whatever the payroll add-on provides. Confirm who pays the clearing house fees and how choice-of-fund data is captured.

TPAR

If you’re in building and construction, cleaning, couriers, IT or security services, the Taxable Payments Annual Report needs contractor payment data tagged all year; retrofitting it in June is painful. Check the system flags reportable contractors at supplier level, rather than leaving you to dig back through a year of transactions.

PEPPOL e-invoicing

Australia’s e-invoicing standard, driven by government procurement and spreading into the private sector. Today it’s an advantage; the direction of travel suggests it becomes an expectation. The question for every vendor: “Who is your PEPPOL access point, and is it included or priced separately?” Plenty of the sales teams we’ve spoken with can’t answer it yet.

Five questions to put to every vendor

1. “Is your payroll engine on the ATO’s STP Phase 2 product register, and under whose name?” (Register entries name the actual product, not the reseller.)
2. “Show me a BAS prepared and lodged from the system, end to end, in the demo.”
3. “Which SuperStream gateway do contributions flow through, and what does it cost?”
4. “If payroll is an add-on: who supports the integration when a pay event fails at 4pm on pay day — you or them?”
5. “Who is your PEPPOL access point?”

For how compliance fit ranks against the other selection criteria (partner strength, cost, industry fit), see the full Australian ERP comparison.

Frequently asked questions

Which ERP systems support STP Phase 2 natively?

MYOB Acumatica, Wiise, TechnologyOne and Pronto Xi include ATO-compliant STP Phase 2 payroll in the core product. Business Central, NetSuite, SAP Business One and Sage Intacct rely on certified payroll add-ons or connected AU payroll products. For Odoo and other global platforms, confirm certification for the specific version you would deploy.

Is NetSuite ATO-compliant?

For GST and BAS, yes: the native tax engine handles Australian requirements. Payroll (STP Phase 2, SuperStream) runs through localised third-party payroll products, so compliance depends on the add-on you pair with it.

Does Business Central handle Australian payroll?

Not natively. The AU localisation covers GST and BAS; STP Phase 2 payroll comes from certified add-ons or connected payroll products, which is a real scope and cost line in any Business Central project.

Is PEPPOL e-invoicing mandatory in Australia?

Not for businesses generally, but Commonwealth agencies are required to receive e-invoices, adoption is expanding through government supply chains, and vendors’ PEPPOL readiness is now a fair selection criterion.

What is SuperStream and does my ERP need it?

SuperStream is the mandatory data-and-payment standard for super contributions. Your ERP needs it only if it runs payroll; native-payroll systems bundle a gateway, add-on arrangements inherit the add-on’s.