Odoo Upgrade to Odoo 18: Why, How And What Methods for Australian Businesses

An Odoo upgrade to version 18 is the process of transitioning your existing Odoo system to the newest platform release officially supported by Odoo. More than just a version change, this upgrade represents a strategic refresh of your business systems, with implications across finance, operations, compliance, and scalability.

For Australian businesses, this move has critical timing relevance. Version 18 introduces key advancements tailored to local needs: full support for STP Phase 2, streamlined deferred GST handling for BAS, and improvements to ABA file generation for local banking. Combined with a faster UI, new AI-based tools, and powerful updates to mobile workflows, Odoo 18 enables businesses to operate with greater compliance and agility in an increasingly digital economy.

Conversely, delaying the upgrade risks stagnation. Odoo only delivers bug fixes, security patches, and performance improvements for its three most recent versions. While certified Odoo Partners may offer support for older systems, businesses that continue operating on outdated versions risk missing out on critical enhancements, especially those related to Australian tax compliance, such as BAS and STP updates. In addition, older versions may experience growing incompatibility with third-party connectors like Xero or Shopify, increasing the operational burden and reducing long-term scalability.

This blog serves as a guide for Australian business owners, IT leads, and operations managers to evaluate:

• Why upgrading now delivers measurable value
• How the process works from testing to go-live
• What upgrade method is right for your business

You’ll also find side-by-side comparisons of Odoo 15–18, a practical roadmap adapted to real-world implementation constraints, and clear insights to help you make the upgrade decision with confidence.

Should Australian Businesses Upgrade To Odoo 18?

Yes, Australian businesses running Odoo 15, 16 or 17 should consider upgrading to Odoo 18. The latest version offers critical improvements in compliance, automation, user experience, and performance, especially for organisations managing payroll, BAS, and high-volume operations.

Delaying the upgrade not only increases the risk of falling out of ATO compliance but also leads to rising maintenance costs, duplicated manual work, and delays in critical reporting. This is typical for businesses managing BAS, payroll, or multi-entity accounting in Odoo.

1. What’s new in Odoo 18 for Australia?

Odoo 18 delivers its most Australia-ready release to date, addressing long-standing compliance and integration challenges. From STP Phase 2 reporting and SuperStream compliance to deferred GST support within BAS, the core accounting and payroll tools are now better aligned with Australian tax standards.

Businesses also gain improvements like multi-scan barcode tools, Click & Collect ecommerce, and enhanced ABA bank file generation - all designed for greater agility and control across operations.

• STP Phase 2 and SuperStream compliance out of the box, aligning with ATO and Fair Work standards.
• Deferred GST support within BAS reporting for cleaner, more accurate tax automation.
• Improved ABA bank file generation and compatibility with Open Banking standards.
• Enhanced AU payroll workflows, covering termination payments, year-end checks, and streamlined award interpretations.

Beyond compliance, businesses gain access to:

• Click & Collect ecommerce
• Multi-scan barcode processing in warehouses
• Smarter appointment scheduling
• Improved invoicing, project analytics, and employee onboarding

These updates support not only operational agility but also long-term scalability for Australian businesses in manufacturing, distribution, retail, and professional services.

2. Odoo 18 vs Odoo 15, 16, and 17: What’s changed over time?

Upgrading to Odoo 18 marks a significant step forward, building on improvements introduced across the last three versions. Odoo 15 strengthened reporting and analytics, Odoo 16 enhanced system speed and backend performance, and Odoo 17 delivered a modernised user interface along with major upgrades to POS and website tools.

But Odoo 18 ties it all together with advanced automation, deeper localisation for AU compliance, mobile-first tools, and a more secure, intuitive interface. These are not marginal improvements - they address the core inefficiencies in older systems.

To explore how each version has evolved and what core upgrades affect your business, read our full guides on Odoo 15, Odoo 16, Odoo 17, and Odoo 18.

For many Australian businesses, especially those running mission-critical tasks like payroll or finance, these improvements are not merely incremental - they resolve long-standing bottlenecks.

3. When should you upgrade to Odoo 18?

If your business is running on Odoo 15 or earlier, or relies on manual workarounds for compliance, it's time to upgrade. Common triggers include unsupported versions, missing STP Phase 2 configuration, limited performance in warehouse or e-commerce operations, or custom modules that have become costly to maintain. The earlier you address these issues, the more cost-effective and low-risk your upgrade path becomes.

• You’re still using Odoo 15 or earlier (end-of-support applies).
• You rely on manual payroll processing or lack STP Phase 2 compliance.
• Your workflows require AU-specific integrations, such as BPAY, SuperStream, or ATO APIs.
• You manage large volumes in e-commerce, warehousing or manufacturing, but feel restricted by outdated UI or performance issues.
• You use multiple custom modules as workarounds, which are no longer scalable or maintainable in your current version.

4. Cost vs. benefit: Is it worth it?

Yes - for most growing businesses, the benefits of upgrading far outweigh the costs. While upgrades require time and resources, the consequences of remaining on an outdated system include a lack of vendor support, security vulnerabilities, broken integrations, and missed automation opportunities.

In contrast, Odoo 18 unlocks immediate value through localised compliance tools, improved process automation, and reduced IT maintenance overhead.

• Support and security risks from unsupported versions
• Missed efficiency gains from new automation
• Higher maintenance costs due to patching legacy customisations
• Compliance exposure in payroll and tax reporting

These issues don’t just cost developer time - they prevent your business from scaling.

The next critical step is knowing how to upgrade without disrupting your business.

In the following section, we’ll walk through a structured, real-world upgrade roadmap - covering everything from planning and testing to going live and stabilising your system. Whether you’re working independently or with an Odoo Partner, this guide will help you execute your Odoo 18 upgrade with confidence and precision.

Odoo 18 Upgrade Process: A Practical Roadmap for Australian Businesses

This practical roadmap for upgrading to Odoo 18 follows a clear four-phase structure that aligns with Odoo’s official guidance and our experience with clients, ensuring Australian businesses upgrade safely, compliantly, and without disruption. While it offers a typical upgrade framework to help you understand the overall process, specific actions and configurations will vary by business, so it’s recommended to consult with an Odoo Partner in Australia for tailored planning and execution.

See the illustration below for an overview of the Odoo 18 upgrade roadmap:

Phase 1: Pre-Upgrade Readiness

The pre-upgrade readiness phase ensures your team, your data, and your timing are aligned for a smooth transition.

• Check version, hosting, and eligibility: Determine whether you're on Enterprise or Community, and confirm where your system is hosted (Odoo.sh, on-premise, Odoo Online or third-party cloud). Know which version you're upgrading from - older versions like 10, 11, or 12 may involve additional migration layers.
• Schedule around business-critical periods: Plan your upgrade outside of key operational windows - especially around BAS lodgement, payroll cycles, EOFY processing, or seasonal demand peaks.
• Take a full backup: Ensure you have a complete, restorable backup of your production database, filestore, and attachments before anything is sent to Odoo. This is your insurance policy in case of rollback or test environment failure.
• Review custom modules and third-party apps: Work with your Odoo partner to list all custom developments. Identify which can be upgraded, deprecated, or replaced by standard Odoo features in version 18.

Phase 2: Staging – Testing & Preparation

The staging phase focuses on preparing your upgraded environment, validating functionality, and aligning the upgraded system with your operational needs.

• Submit the database for test upgrade: Your current production database (usually a duplicate version) is submitted to Odoo’s official upgrade platform. This step may involve support follow-ups if technical issues arise during conversion.
• Set up a staging environment: A secure staging environment is set up once the upgraded test database is returned. Here, reinstall necessary modules, activate relevant apps, and ensure the upgraded system mirrors your real operations.
• Initial testing and refinement: Conduct internal testing to resolve common issues such as broken customisations or deprecated modules. Any outdated or unnecessary custom code is reviewed and cleaned up to reduce future upgrade friction.
• Testing & customisation review: Test the upgraded staging system thoroughly. This is the time to explore the new interface, check business processes, and document any change requests, especially for website elements, which cannot be automatically carried over during the final upgrade.

Phase 3: Go-Live – Final Upgrade & Launch

Once your staging environment is approved, the production system is prepared for the final upgrade and launch.

• Re-submit production database for final upgrade: When you're ready to go live, a fresh version of your current (pre-upgrade) database is sent to Odoo again for a final upgrade. This ensures that your latest live data is captured. Once complete, the upgraded system will be deployed into your production environment.
• Deploy to live system: Your staging configurations, approved apps, and system settings are reapplied to the live server. This includes financial rules, permissions, installed modules, and other key operational elements tested during staging.
• Go-live and handover: Once everything is configured and tested, your Odoo 18 system goes live. From this point forward, your operations continue on the upgraded platform. Any minor adjustments are handled post-launch to avoid delays.

Phase 4: Post-Upgrade Stabilisation

After go-live, the focus shifts to system monitoring, user feedback, and continuous optimisation.

• Monitor performance and system behaviour: In the first few days, performance, background jobs, and integrations (e.g. Xero, ABA files, STP, Shopify) are closely observed. Any issues are promptly addressed.
• Conduct follow-up testing: A second round of internal QA ensures that real-world usage matches expected workflows.
• Capture feedback and support adoption: Feedback from end users is gathered to identify process gaps or training needs. These insights inform future enhancements and help you get the most from Odoo 18’s features.

Executing the upgrade is only half the equation. The success of your Odoo 18 migration also depends on who manages the process. In the next section, we’ll help you determine whether to manage the upgrade in-house or partner with a certified Odoo expert, and what criteria matter most when making that decision.

Should You Upgrade Odoo 18 In-House or With a Partner?

Australian businesses should choose their Odoo 18 upgrade method based on internal technical capacity, system complexity, and compliance requirements.

If you have a lightweight setup and in-house Odoo expertise, a self-managed upgrade may be feasible. But for most companies - especially those handling payroll, BAS, or custom workflows - partnering with a certified Odoo provider ensures a safer, more efficient, and compliant transition.

1. When a DIY upgrade might work

A DIY upgrade is only suitable for low-risk environments with minimal customisation and strong in-house technical capacity. This includes businesses running near-standard Odoo builds on Odoo.sh with limited dependencies and no complex workflows or multi-entity tax logic.

You may consider managing the upgrade internally if:

• Your Odoo instance is close to standard (minimal custom modules or third-party apps).
• You have internal technical expertise with experience managing staging environments and debugging custom code.
• Your operations are not dependent on complex workflows, AU-specific tax rules, or multi-entity structures.
• You’re using Odoo.sh, which includes built-in staging branches and upgrade support tools.

However, DIY upgrades carry significant risks, especially if custom modules or AU payroll logic are involved. Businesses in healthcare, manufacturing, or financial services should be especially cautious, as downtime or errors can directly impact compliance and service continuity.

2. Benefits of working with an Odoo Partner in Australia

For most mid-sized or growing Australian businesses, partnering with a local Odoo-certified provider is the safest, most reliable choice. The following image highlights four key benefits of collaborating with an Odoo Partner in Australia:

Here’s what you gain:

• Expert handling of AU localisation: A registered Odoo Partner understands compliance needs, including STP Phase 2, SuperStream, ABA bank file generation, and BAS reporting.
• Full coverage of technical complexity: A partner can manage the migration of custom modules, API connectors, legacy fields, and environment configuration.
• Minimised risk, reduced disruption: Experienced partners run upgrades in sandbox environments, apply automated test cases, and perform phased rollouts - so your team isn’t caught off guard.
• Post-upgrade support: A local partner is equipped to retrain users, fix post-go-live issues, and help your teams adopt new workflows and tools.

At Havi Technology, we’ve successfully delivered upgrade projects for companies across Australia and New Zealand - balancing speed, accuracy, and long-term system health. Our strength lies not just in technical ability, but in our deep understanding of local compliance and industry-specific operations.

3. What to look for in a reliable upgrade consultant?

A reliable Odoo upgrade partner combines technical credentials with local context and proven methodology. Before choosing your consultant, verify that they offer:

• Odoo Partner Status: Certified partners have direct access to Odoo’s technical teams and official support tools.
• Local Presence: An Australian-based consultant ensures alignment with time zones, tax rules, and operational expectations.
• Experience with customisations: The ability to port, refactor, or replace custom modules is essential for a smooth migration.
• Track record in your industry: Choose a provider with case studies or references in your vertical (e.g. manufacturing, retail, logistics).
• Structured upgrade methodology: A well-documented, phase-based approach shows maturity and accountability.

Choosing the wrong consultant can delay your rollout, increase your costs, and expose you to compliance risks. The right one helps you evolve with confidence.

Whether you choose to upgrade in-house or with expert help, the decision to delay altogether can be far more costly. Let's explore the strategic risks Australian businesses face when remaining on outdated versions - and what it could mean for your compliance, operations, and bottom line.

What Are The Risks of Delaying Your Odoo 18 Upgrade In Australia?

Delaying your Odoo 18 upgrade exposes your business to immediate operational, security, and compliance risks, especially if you're running Odoo 15 or earlier, which is no longer supported. Without active vendor updates or compatibility with modern integrations, your ERP becomes increasingly fragile, expensive to maintain, and misaligned with Australian reporting standards. These risks are not hypothetical - they’re already affecting businesses that depend on outdated systems.

The illustration below shows the four most critical consequences you face by postponing the upgrade:

1. Loss of vendor support and security patches

Running Odoo 15 or earlier means your system is officially unsupported. Odoo only maintains security patches and technical support for the latest three versions - currently Odoo 16, 17, and 18.

As a result, businesses are still using older versions:

• Lose access to security patches, leaving finance and payroll modules vulnerable
• Cannot rely on vendor help for version-specific bugs or crashes
• Face higher risk under Australian regulatory frameworks (e.g. the Privacy Act 1988 or Fair Work compliance)

Unsupported software is not just outdated - it’s a compliance liability.

2. Incompatibility with newer integrations

Legacy Odoo versions are increasingly incompatible with modern business systems. As third-party tools advance, your ability to sync data, automate workflows, and meet ATO and Open Banking standards diminishes.

In Australia, this creates problems such as:

• Banking integrations breaking due to outdated ABA file standards
• Shopify, WooCommerce, and other platforms dropping support for old APIs
• ATO and SuperStream connectors failing to validate updated formats

This challenge becomes especially clear when dealing with Australian accounting tools. For example, many businesses relying on older integrations may struggle with real-time sync or Open Banking updates - problems that can be resolved with Odoo and Xero integration, which requires compatibility with recent Odoo versions.

The longer you wait, the harder it becomes to fix or bridge these gaps without costly rework.

3. Growing technical debt from outdated custom code

Every month you stay on an old Odoo version, your technical debt compounds. Custom workflows, modules, and integrations built for Odoo 14 or 15 often break or degrade in performance as core platform changes roll out (e.g. OWL engine, refactored ORM in Odoo 16+).

Consequences include:

• Frequent patching just to keep features working
• Rising dev hours to rebuild deprecated functionality
• Slow deployment of new features due to backward dependencies

Instead of focusing on growth, your IT team gets trapped in maintenance mode.

If you’re unsure what’s still considered “standard” or which of your modules have become obsolete, reviewing the evolution from Odoo 15 through Odoo 18 can help clarify which features are now built-in and which require rework.

4. Missed productivity gains and automation capabilities

Odoo 18 delivers meaningful time savings and automation that older versions simply can’t match. By delaying, your business continues to rely on slower interfaces, slower interfaces, disconnected workflows, and limited automation support.

You lose out on:

• Smart eCommerce tools like Click & Collect and Webp image optimisation
• Multi-scan barcoding and auto-routing in warehouse operations
• AI-assisted scheduling and budgeting
• Fully compliant AU payroll and STP automation across multiple entities

Throughout this guide, we’ve explored why upgrading to Odoo 18 is an urgent priority for Australian businesses facing local compliance obligations and performance limitations. We’ve also walked through how to plan and execute the transition with minimal risk and disruption, and discussed what upgrade method best fits your business, depending on its stage, internal capabilities, and long-term goals.

The bottom line is clear: staying on an outdated version of Odoo introduces risks you can’t afford, while upgrading opens the door to stability, innovation, and growth.

If you’re evaluating your next step, speak with a certified Odoo consultant at Havi Technology to map the upgrade path that's right for your business.

References:

• Odoo. Odoo 18 - Upgrade.