- Xero AU plans run A$37 to A$143/month in 2026 (Ultra above that), GST inclusive.
- Payroll is included but capped by tier, so upgrades are driven by headcount.
- Software plus your time often costs the same as a fixed-fee managed accountant.
Xero prices in Australia now run from A$37 per month for the entry Ignite plan up to A$143 per month for Ultimate, following the July 2026 increase, with a new Ultra plan sitting above that for larger operations. Every plan bundles the core accounting tools plus a set number of payroll seats, so the real question is not just the sticker price but which tier your business actually needs and what the add-ons cost. For many owners the honest answer is a different one: pay for software and still do the work, or hand the whole thing over.
How much does Xero cost in Australia in 2026?
Xero’s Australian plans start at A$37 per month for Ignite and rise through A$78 for Grow and A$107 for Comprehensive to A$143 per month for Ultimate, as of July 2026 following the 1 July price rise (confirm current figures at xero.com/au before subscribing). Xero also introduced a larger Ultra plan from around A$500 per month for mid-sized businesses. New customers are often offered an introductory discount for the first few months, so your first invoices may look lower than the standard rate.
If you would rather not run the software yourself, managed accounting covers the books for a fixed monthly fee instead, which changes the comparison from “which plan” to “software or service”.
Xero plan | From (monthly) | Payroll included | Key inclusions | Best for |
|---|---|---|---|---|
Ignite | A$37 | 1 employee | Invoicing, quotes, bank feeds, GST and prepared BAS, basic reports | Sole traders, very small teams |
Grow | A$78 | Up to 2 | Adds multi-currency, Xero Projects, bulk reconcile | Growing service businesses |
Comprehensive | A$107 | Up to 5 | Adds deeper reporting and analytics | Established SMEs with staff |
Ultimate | From A$143 | 10, add seats as needed | Adds Xero Expenses and Analytics Plus | Larger or multi-entity teams |
Managed accounting (Sleek) | From A$180 sole trader / A$275 company | Handled for you | Books, BAS and tax done for you | Owners who want it off their plate |
All Xero figures are Australian pricing as of July 2026, GST inclusive, and subject to change. The Sleek figures are list pricing and are explained in the managed-accounting section below.
Xero plans compared: what is included at each tier
The plans step up mainly on payroll capacity and reporting depth rather than on core bookkeeping, which is broadly the same across the range. Every tier gives you invoicing, automated bank feeds, GST tracking with prepared BAS, and Single Touch Payroll reporting to the ATO.
Ignite is built for sole traders and very small teams, with payroll for one person. Grow opens up multi-currency and Xero Projects for time and cost tracking, and lifts payroll to around two employees. Comprehensive and Ultimate add more reporting muscle, higher payroll capacity and, at the top tier, tools like Xero Expenses and Analytics Plus.
The practical point is that most small businesses do not need the top tier. You are usually paying to move up for payroll seats or a specific feature such as multi-currency, not for better day-to-day bookkeeping.
What extra costs should you budget for?
The plan fee is rarely the whole story, so budget for the add-ons before you decide Xero is the cheap option. The most common extras are receipt-capture tools, apps from the Xero marketplace, and moving up a tier once your headcount passes your plan’s payroll cap.
Receipt and document tools such as Hubdoc are included on most plans, while heavier automation like Dext is a separate subscription. If you run more employees than your plan covers, the cost is a tier upgrade rather than a per-head charge, so it pays to map your headcount for the next year. Larger app integrations, from inventory to point of sale, each carry their own monthly fee.
TIPBefore you subscribe, add up the plan fee plus every app you know you will need, then compare that total (not the headline plan price) against the alternatives. The gap between the sticker price and the real monthly cost is where most budgeting goes wrong.
Which Xero plan do you actually need?
Match the plan to your headcount and your need for extras, not to the longest feature list. A sole trader who invoices and reconciles a bank feed rarely needs more than Ignite, while a growing team with five or more staff and multi-currency needs is the natural fit for Grow or Comprehensive.
If you carry stock, run projects, or need detailed analytics, the higher tiers earn their fee. If you do not, paying for Ultimate is buying capability you will not use. The best accounting platforms in Australia comparison is worth a look if you are still weighing Xero against MYOB or QuickBooks, and the MYOB vs Xero breakdown covers that specific pairing. If you are not sure you need paid software at all yet, the guide on when you need bookkeeping software is a sensible first read.
Xero versus a managed accountant: the real cost of your time
The pricing comparison people skip is software plus your own hours against a managed accountant who does the work for you. A Xero subscription is only the licence fee. The reconciling, chasing receipts, preparing BAS and lodging still land on you or a bookkeeper you pay separately.
Once you add a bookkeeper’s fees to the software cost, a fixed-fee managed service often lands in the same range, with far less of your time spent on admin. That is the trade many owners miss when they compare Xero purely on its plan price. If your evenings are going on reconciliations, the cheaper option on paper may be the more expensive one in practice.
How Sleek helps you skip the software juggling
If paying for software and still doing the books yourself is the part you want to avoid, Sleek offers managed accounting where a dedicated accountant runs your bookkeeping, BAS and company tax return for you. You are not buying a licence and a to-do list, you are handing the numbers to a team that keeps you compliant.
Sleek’s managed accounting starts from A$180 per month for sole traders and from A$275 per month for companies (list pricing as of July 2026), and you can add bookkeeping for regular reconciliations or step up to a small business accountant engagement for the full picture.
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Frequently Asked Questions
How much does Xero cost per month in Australia?
Xero’s Australian plans run from A$37 per month for Ignite to A$143 per month for Ultimate, as of July 2026 after the 1 July price increase, with a larger Ultra plan above that from around A$500 per month. Prices are GST inclusive and change periodically, and new customers are often offered an introductory discount, so confirm the current rate at xero.com/au before you subscribe.
Which Xero plan do I need?
Choose by headcount and features rather than price. A sole trader or very small team is usually well served by Ignite, a growing business with up to five staff or multi-currency needs fits Grow, and larger teams that want deeper reporting move to Comprehensive or Ultimate. If you are unsure, start lower and upgrade, since moving up a tier is straightforward.
Does Xero charge extra for payroll?
Payroll is included in every Xero plan, but each tier caps the number of employees you can pay, from one on Ignite up to ten on higher plans. If your headcount exceeds your plan’s cap, you move up a tier rather than paying a separate per-employee fee. Automatic superannuation payments are included to help you meet current ATO rules.
Is Xero worth it for a sole trader?
For a sole trader who invoices regularly and wants automated bank feeds and GST tracking, the entry Ignite plan is usually worth it. If you only raise a handful of invoices a year, a cheaper tool or a managed bookkeeping plan may be better value. The deciding factor is how much time the software actually saves you each month.
What is cheaper, Xero or an accountant?
Xero’s licence fee is lower than a full accounting service, but the comparison is not like for like, because the software still leaves the work to you. Once you add a bookkeeper’s fees to the subscription, a fixed-fee managed accountant often costs a similar amount while doing the work for you. Compare the software-plus-your-time total, not just the plan price.
Can I use Xero without an accountant?
Yes, many sole traders and small businesses run Xero themselves and only see an accountant at tax time. Xero handles the day-to-day recording and reporting, but it does not replace professional judgment on tax planning, structure or year-end review. Whether you need ongoing help depends on how complex your affairs are and how confident you feel doing it yourself.
Do Xero prices include GST?
Xero’s advertised Australian plan prices are generally quoted inclusive of GST, so the amount on your invoice will be higher once GST is added. Introductory discounts, when offered, apply to the plan fee for a limited period before reverting to the standard rate. Always check the current pricing and any promotion terms on xero.com/au before subscribing.
