Xero Pricing Australia 2026: Plans, Payroll and Add-ons

Xero costs between $37 and $500 a month in Australia, including GST, as at 17 October 2026. Ignite is $37, Grow $78, Comprehensive $107, the four Ultimate plans $143 to $300, and Ultra $500. Every plan includes payroll for a fixed number of people. New customers can get 80% off the base plan for three months, and Xero bills monthly only.

Prices in AUD including GST, checked on xero.com/au on 17 October 2026. The 80% offer applies to new customers buying their first organisation.

What does each Xero plan include?

All plans include invoices and quotes, online invoice payments (payment fees apply), bill tracking, bank reconciliation, GST tracking and BAS lodgement, document capture, real-time reports and automated super. The differences are in limits and the higher-tier tools.

Source: Xero AU pricing pages, checked 17 October 2026. Ultra's bill-payment and expense-user allowances are listed as included without a number.

Xero does not charge a licence fee for each ordinary user login. The allowances above apply to people paid through payroll and to users of expenses and projects, and Xero says invited users with access to those features can trigger extra charges if you exceed the included number. Our Xero feature guide walks through the everyday workflow on each plan.

How much does Xero payroll cost?

There is no separate payroll subscription. Xero retired its Payroll Only plan in 2024, and payroll is now part of every business plan. You pay for payroll by choosing a plan with enough people.

Calculated from Xero's standard monthly prices including GST, checked 17 October 2026. The per-person column divides the whole plan price, which also covers your accounting, by the payroll allowance.

The jump points matter more than the average. Hiring a third person on Grow adds $348 a year ($29 × 12). Xero's payroll page says pricing is based on the number of employees included each calendar month, so a short-term casual can push you over a limit for that month. If your headcount moves around, check the people-paid count on your Xero invoice for a few months before settling on a plan.

Every plan's payroll is ready for Single Touch Payroll and includes automated super, which matters under the payday super rules that started on 1 July 2026. See our guides to Single Touch Payroll and payday super, and the payroll software comparison if award interpretation or rostering is the bigger issue.

What add-ons and usage charges does Xero have?

Sources: Xero AU pricing, Ultra, Ledger and Cashbook and not-for-profit pages, checked 17 October 2026. The Ledger and Cashbook page does not say whether those prices include GST.

Two older add-ons have changed. Analytics Plus was bundled into Comprehensive and Ultimate in Xero's July 2025 plan sheet; Xero now runs webinars on moving from Analytics Plus to Xero Analytics, and its analytics page says core analytics features are included in all business plans. Hubdoc was included in the 2025 plan sheet; the current pricing page instead lists "smart document capture" in every plan and links to Hubdoc's terms.

What is the current Xero offer, and what does year one cost?

As at 17 October 2026, Xero's Australian site offers two alternatives:

• 80% off for three months. For new customers in Australia buying their first organisation on xero.com, using the code shown on the pricing page. It applies to the base plan only, not to add-ons, usage charges or payment fees, and cannot be combined with another offer. The regular price then applies and the subscription auto-renews monthly.
• One month free. The pricing page says you get the first month free when you buy any plan. The Australian sign-up flow shows $0.00 for the first month, then the full price, and says you can change or cancel within the free month.

Illustrative, base plan only, at prices checked 17 October 2026 and assuming no further price change in the 12 months. Formula for the 80% offer: (promotional price × 3) + (standard price × 9).

The 80% offer is worth 2.4 months of fees; the free month is worth one. Neither changes what you pay from year two, so budget on the standard column. Our three-year cost method shows how to keep a promotion from hiding the ongoing price.

What changed in Xero pricing on 1 July 2026?

Xero raised prices for new and existing Australian subscribers on Ignite, Grow, Comprehensive and Ultimate plans from 1 July 2026.

Source: Xero's price-change page (archived 2 June 2026). Percentages calculated by ASBG.

Xero also said:

• optional add-on prices would not change
• existing discounts and promo codes would keep applying to the new prices until they expire
• the multi-organisation discount would no longer be applied from 1 July 2026.

The "before" column matches Xero's own plan sheet for prices effective 1 July 2025, so these were the first increases since then. Ultra, at $500 a month, now sits above Ultimate 100 as Xero's top plan for businesses that need multi-entity reporting and priority support.

Old Xero plan names and what replaced them

If an old invoice, a bookkeeper or a forum post mentions Starter, Standard or Premium, this is how they line up. Xero's blog confirms that on 1 July 2024 the Payroll Only, Starter, Standard and Premium business plans, and the GST Cashbook and Cashbook Payroll partner plans, stopped being sold, and that Premium 10 to 100 customers were moved to Ultimate. Customers facing a price increase from migration were moved from July 2025.

The mapping and pre-2024 prices are from LodgeiT, a secondary source; Xero's blog confirms the retired names but does not publish a mapping table. Today's prices are from xero.com/au, checked 17 October 2026.

Which Xero plan do I need?

Start with the hard limits. Any one "yes" in a row rules out the plans above it.

Based on Xero's plan limits, checked 17 October 2026. Ultra can also suit a smaller team that needs consolidation, since it includes 10 payroll people.

Some practical points behind the table:

• Ignite's invoice cap counts approved and sent invoices, and Xero warns that transactions created by connected apps (an online store or payment platform) can count towards it.
• Ignite plus the $8 auto-reconcile add-on costs $45 a month, still $33 less than Grow, if volume is your only reason to look at Grow.
• Multi-currency starts at Comprehensive. If you only occasionally receive a foreign payment, ask your bookkeeper whether converting it outside Xero is acceptable before paying $29 a month more than Grow.
• Downgrading has consequences. Xero Central says moving down from Comprehensive archives foreign-currency bank accounts, and moving down from Ultimate removes Xero Projects.

If you are a sole trader comparing Ignite with cheaper software, read accounting software for sole traders and Xero vs Rounded.

What does Xero cost a year at 0, 1, 2, 5 and 10 employees?

Base plan only, GST included, prices checked 17 October 2026. Add $5 a month for each expense user above the allowance and any bill-payment or payment-processing fees you use.

Is Xero cheaper than MYOB or QuickBooks?

From two employees up, Xero has the highest standard price of the three in this comparison, mainly because MYOB and QuickBooks charge payroll per employee and both offer annual billing. At zero or one employee, Ignite is competitive if its invoice and bill caps suit you. Xero's case rests on features at each tier and on how many bookkeepers already use it, so compare like for like.

Standard annual cost including GST, no promotions, checked 17 October 2026. MYOB figures add its payroll fee of $5 per employee a month, which applies from 1 November 2026 ($3 before then); MYOB's annual option covers the base plan and payroll is billed monthly. QuickBooks figures use Simple Start ($33 a month) plus $6 per employee a month.

Read the table with these limits in mind:

• QuickBooks Simple Start has one user, and supplier and bill management and multi-currency start at Essentials ($60 a month), which adds $324 a year. QuickBooks also offers annual billing at a discount it does not quantify on the pricing page.
• MYOB Lite connects up to two bank accounts and pays up to two employees; Pro removes both limits. Full figures are in our MYOB pricing guide.
• Xero Ignite is the only plan in the table with an invoice cap.

For the broader choice, see Xero vs MYOB, Xero vs QuickBooks and Xero alternatives.

Monthly or annual: how does Xero billing work?

Xero bills monthly only. Its pricing FAQ, under the heading about paying annually, explains that you receive an invoice at the end of each monthly billing period and payment is taken on the invoice date. Usage charges for payroll, projects, expenses or a chargeable direct bank feed are invoiced for the previous month, so a busy month shows up on the following invoice.

When you change plans, Xero Central says subscribers billed at the end of the month are charged pro rata for the days on each plan, while subscribers who pay in advance get no credit for the rest of the period if they downgrade straight away. Changing plans does not affect existing promo codes or discounts.

Free trial, downgrades and cancelling

• Free trial: Xero's offer terms describe a 30-day free trial with limited features. You cannot take a free trial if you choose to buy a paid subscription, so the one-month-free purchase and the trial are separate routes.
• One month free on purchase: the AU sign-up flow lets you change or cancel within the free month. Xero's legal offer page says its one-month-free offer is for certain US and NZ customers, which conflicts with the AU flow, so screenshot the terms you are shown.
• Upgrading: any time, by the subscriber, in the web version of Xero.
• Downgrading: Xero Central says after 30 days on your current plan; the pricing page says one month after upgrading. Feature limits apply immediately, and on Ignite earlier transactions in the month count towards the new limits.
• Cancelling: one month's notice, and you are still charged for the notice period. There is no read-only plan, but you can cancel and reactivate later.

Before cancelling, export the reports, payroll records and attachments you must keep, because the obligation to keep business records stays with you after the subscription ends. Our record-keeping guide and switching checklist cover what to keep and what to take with you.

Is Xero tax deductible, and can I claim the GST?

The ATO lists subscription fees for off-the-shelf software among the operating expenses a business can generally deduct in the year it incurs them. Only the business portion is deductible if the subscription is also used privately.

If you are registered for GST, you can claim the GST included in the fee as a GST credit on your BAS, provided you are entitled to it. The ATO requires a tax invoice for purchases over $82.50 including GST, and you then deduct the GST-exclusive amount in your tax return. If you are not registered for GST, you deduct the full GST-inclusive fee.

Illustrative arithmetic using the ATO's method; monthly amounts are rounded. Your tax agent should confirm your position.

Xero's invoices come from Xero Australia Pty Limited, the contracting entity named in its Australian terms. For overseas apps you connect to Xero, check whether the invoice includes Australian GST before coding it; see GST on overseas software subscriptions. Our small business deductions list and GST and BAS guide cover the wider rules.

Ways to keep your Xero bill down

1. Size the plan to your busiest month, then check the people-paid and expense-user counts on each invoice. Remove expense or project access from people who no longer need it.
2. Use the 80% offer if you are new, and diarise the date it ends so the standard price is not a surprise.
3. Ask for the 25% not-for-profit discount if you are a registered not-for-profit. Xero asks for evidence within the free trial or 31 days of subscribing.
4. Test Ignite with the $8 add-on before moving to Grow if transaction volume, not staff, is the issue.
5. Review the plan after a headcount change. You can downgrade after 30 days, but you lose some features and data straight away, so check what you would lose first.
6. Trial before you commit. Use the trial checklist and, for a new business, the Xero setup checklist. If you or your staff need to learn the software, Xero's own training is free.

Key takeaways

• Standard Xero prices run from $37 a month (Ignite) to $500 a month (Ultra), GST included, as at 17 October 2026.
• Payroll is bundled into every plan and capped by people paid; below Ultimate 100 you move up a plan rather than buy extra payroll seats.
• The 80% off offer cuts three months of the base fee, saving 2.4 months of fees in year one; add-ons and usage charges are not discounted.
• Prices rose on 1 July 2026 by $2 to $28 a month depending on the plan, and the multi-organisation discount ended.
• Xero bills monthly only and needs one month's notice to cancel, so check the notice period before you switch.
• A GST-registered business can usually claim the GST in the fee as a credit and deduct the GST-exclusive amount.

Where to get help

• Xero: pricing plans, offer details and Xero Central for plan changes and cancellation.
• ATO: business deductions and claiming GST credits.
• Australian Small Business and Family Enterprise Ombudsman: dispute support if you cannot resolve a billing dispute with a software supplier. Our guide to unfair contract terms explains the protections for small business contracts.
• Your BAS agent or tax agent: to check plan fit, GST coding and the deduction. See how to choose a BAS agent.

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