Australian compliance requirements are non-negotiable. Your ERP must handle GST correctly, produce a BAS that your accountant can lodge, report payroll through Single Touch Payroll Phase 2, and calculate superannuation accurately. Getting any of these wrong creates ATO exposure and audit risk. This guide covers how the major ERP platforms — NetSuite, Business Central, and Dynamics 365 Finance — handle each Australian compliance requirement, and what you need to configure to get it right.
GST Configuration
All three platforms support Australian GST — but the configuration approach differs. Business Central and Dynamics 365 Finance use a tax group and tax posting group structure that maps to GST codes (G1, G2, G3, etc.) required for BAS reporting. NetSuite uses a tax code structure with Australian-specific codes pre-configured in the Australian localisation. In all three platforms, correct GST configuration requires mapping every product, service, and transaction type to the correct GST code. This is typically done during implementation and validated against a sample of historical transactions.
BAS Reporting
Business Activity Statement (BAS) reporting requires your ERP to correctly categorise every GST transaction into the relevant BAS labels (1A, 1B, G1–G20). Business Central and Dynamics 365 Finance produce a BAS report directly from the system that maps to the ATO's BAS labels. NetSuite produces a GST audit report that your accountant uses to complete the BAS. In all cases, the accuracy of your BAS depends entirely on the accuracy of your GST configuration — a misconfigured tax code will produce an incorrect BAS.
Single Touch Payroll Phase 2
Single Touch Payroll Phase 2 (STP2) requires employers to report detailed payroll information to the ATO each pay run — including disaggregated income types, tax treatment codes, and child support deductions. Business Central supports STP2 through the Australian payroll localisation. Dynamics 365 Finance supports STP2 through the Australian payroll module. NetSuite does not have a native Australian payroll module — most NetSuite customers use a third-party payroll system (KeyPay, Employment Hero, or MYOB Payroll) integrated with NetSuite for payroll data.
Superannuation
Superannuation calculation and payment is a mandatory employer obligation in Australia. Business Central and Dynamics 365 Finance calculate superannuation as part of the payroll module, with support for the Superannuation Guarantee rate and salary sacrifice arrangements. SuperStream-compliant payment is typically handled through integration with a clearing house (ATO Small Business Superannuation Clearing House or a commercial clearing house). For NetSuite customers using a third-party payroll system, superannuation is managed in the payroll system and the payment data is passed to NetSuite for financial reporting.
What to Check During ERP Selection
When evaluating ERP platforms for Australian compliance, ask: Is the Australian localisation maintained by the ERP vendor or a third party? How frequently is the localisation updated when ATO requirements change? Does the platform support STP2 natively, or do you need a third-party payroll integration? Can the system produce a BAS report directly, or does it require manual compilation? What is the process for updating tax rates and compliance rules when legislation changes? The answers will tell you how much ongoing compliance maintenance you will need to manage.
Australian compliance requirements are manageable in all three major ERP platforms — but they require careful configuration and ongoing maintenance as ATO requirements evolve. If you are implementing a new ERP or concerned about your current system's compliance configuration, our team can review your setup and identify any gaps. Book a free compliance review.
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