- Xero, MYOB and QuickBooks all track GST and lodge BAS, though pricing and payroll limits differ by plan.
- Only a TPB-registered tax agent can legally charge a fee to prepare and lodge a return on your behalf.
- The right pick depends on your GST turnover, payroll headcount and how much support you want at tax time.
The best tax software for Australian small business in 2026 depends on how complex your GST, BAS and payroll needs are, not just the price tag. For most sole traders and small companies, Xero or MYOB cover day-to-day bookkeeping and BAS lodgement well, while dedicated tax-return tools suit simpler affairs. If you want a quick pick: Xero Grow suits growing teams, MYOB Lite suits budget-conscious sole traders, and a registered tax agent suits anyone with more complex obligations.
Software handles the numbers. It does not always catch the mistakes, and that gap matters most at tax time.
What’s the best tax software for an Australian small business in 2026?
There is no single winner for every business. Xero, MYOB and QuickBooks each track GST, generate BAS figures, and connect to your bank feed. The best one is the one that matches your headcount, budget, and how much hand-holding you want.
Sole traders with simple affairs often do fine with an entry-level plan and a bit of discipline. Businesses with payroll, inventory, or multiple GST-registered entities usually outgrow the cheapest tier fast.
If cost is your main filter, MYOB’s Solo app and Xero’s entry plans are worth comparing first. If accuracy and peace of mind matter more than price, pairing software with a registered tax agent tends to work better than software alone.
Independent professionals and contractors often sit between the two extremes. If your income is simple and mostly invoiced, an entry-level plan may cover everything you need. Once you add multiple clients, overseas payments, or deductions across several categories, a second opinion from an accountant tends to pay for itself.
What counts as tax software in Australia?
Tax software covers two overlapping categories. The first is full accounting platforms, like Xero, MYOB and QuickBooks, that track income and expenses, then use that data to calculate GST and prepare your business activity statement (BAS). The second is narrower lodgement tools built mainly for preparing and filing a tax return.
For a small business, the two usually merge into one subscription, because your BAS and your annual return both come from the same set of books. If you want a deeper breakdown of the accounting side of these platforms, our best accounting platforms comparison covers day-to-day bookkeeping features in more detail.
This article focuses on the tax and lodgement side: what actually gets filed with the ATO, and whether software alone is enough to do it safely.
Some platforms also bundle payroll, inventory and multi-currency tools into their higher tiers. These add-ons affect price more than they affect BAS accuracy, so it helps to separate what you need for tax from what you need for growth before you upgrade a plan.
The options compared: features, pricing and support
Three platforms dominate the Australian small business market, alongside the option of using a registered tax agent to prepare and lodge for you. Here is how they stack up on the things that matter at tax time.
|
Option |
Price (AUD) |
What it lodges |
GST/BAS |
Support |
Best for |
|---|---|---|---|---|---|
|
Xero (Grow plan) |
$78/month (per Xero’s published pricing, verified 22 July 2026) |
Invoices, bills, payroll for two people |
Tracks GST and lodges BAS |
Online help centre and partner network |
Small businesses wanting bookkeeping plus BAS in one place |
|
MYOB (Lite plan) |
$315/year (per MYOB’s published pricing, verified 22 July 2026) |
Invoices, expenses (payroll is a separate add-on, ~$3/employee/month) |
Tracks GST and lodges BAS |
24/7 chat support |
Sole traders and micro businesses on a budget |
|
QuickBooks Online (Simple Start to Plus) |
Around A$33 to A$85/month (third-party estimate; confirm at quickbooks.intuit.com/au) |
Invoices, expenses, GST tracking |
Tracks GST and lodges BAS |
Phone and chat support |
Businesses already using QuickBooks’ workflow or app ecosystem |
|
Registered tax agent (for example, Sleek) |
From A$1,620 a year (list price, sole trader accounting Starter) |
Full tax return preparation and lodgement, plus BAS review |
Reviews and lodges GST/BAS for you |
A qualified tax agent you can call |
Businesses wanting the numbers checked and lodged correctly |
TIPAll three accounting platforms lodge BAS directly to the ATO through their own integrations. None of them, on their own, gives you a second set of eyes on whether a deduction is valid or a classification is right. That review still sits with you, or with whoever you engage to check the work.
For background on PAYG withholding and instalment obligations that often show up alongside BAS, see our guide on PAYG and lodgement.
MYOB’s Solo app suits sole traders who want the cheapest entry point and are comfortable tracking GST without full BAS automation. Xero and MYOB’s higher tiers add payroll for more employees and multi-currency support, features that matter more as you scale than they do at tax time.
Tax software vs a registered tax agent: which do you actually need?
Software and a registered tax agent solve different problems. Software organises transactions and calculates figures. A Sleek tax accountant, like any TPB-registered agent, reviews those figures, applies the law to your circumstances, and takes legal responsibility for what gets lodged.
Only a TPB-registered tax agent can charge a fee to prepare or lodge a tax return or BAS on someone else’s behalf. This sits under the Tax Agent Services Act 2009, section 50-5 (per the Tax Practitioners Board).
It’s not a marketing distinction. It’s a legal one, and it’s why software vendors describe their tools as preparation aids, not lodgement services performed by a person.
There’s also a practical upside to using an agent. The ATO confirms that returns lodged through a registered tax agent can often be due later than the standard 31 October deadline for self-lodgers (per the ATO, last updated 24 April 2026). The exact date depends on when you engage your agent. If you’re unclear on the difference between the titles people use, our piece on tax accountant vs tax agent breaks down the terminology.
When software isn’t enough
Software struggles with judgement calls: which expenses are genuinely deductible, how to treat a capital gain, or whether a restructure changes your GST position. These are the areas where an accountant earns their fee, and where a wrong guess can trigger an ATO review later.
If your business has grown past simple bookkeeping, it’s worth looking at legitimate tax strategies alongside your software, rather than relying on default settings to get everything right.
Which option suits your business?
Sole traders with one income stream and few expenses can often manage with entry-level software and careful record-keeping. The risk is small, and the cost of a mistake is usually limited to a correction, not a serious problem.
Growing businesses with payroll, GST registration and more than one revenue stream carry more risk if something is miscoded. At that point, the hourly cost of a registered agent reviewing your BAS or return tends to be cheaper than an ATO amendment later.
Businesses juggling multiple entities, contractors or overseas income usually need both: solid software for the day-to-day numbers, and a qualified professional for the parts that carry legal weight.
Independent professionals working across several contracts often do well with a hybrid approach. Software keeps invoices and expenses tidy month to month, while an annual check from a registered tax agent catches anything that changed, like a new deduction or a shift in GST turnover.
How Sleek helps you lodge with confidence
Software gets your numbers into shape. Sleek’s accounting and tax service takes it further, with a registered tax accountant reviewing your figures, preparing your return, and lodging it correctly on your behalf.
For businesses that have outgrown DIY software, a small business accountant from Sleek can pick up your bookkeeping, BAS and annual return as one ongoing service, rather than a subscription you manage alone.
Ready to hand your tax to a registered agent?
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Frequently Asked Questions
What is the best tax software for a small business in Australia?
Xero, MYOB and QuickBooks are the three main options, and each tracks GST and lodges BAS. The best fit comes down to your payroll headcount, budget, and whether you want an accountant reviewing the output.
Can tax software lodge my BAS directly with the ATO?
Yes. Xero, MYOB and QuickBooks all support electronic BAS lodgement through their own ATO integrations. The software still relies on you, or your accountant, entering and categorising transactions correctly first.
Do I still need an accountant if I use tax software?
Many small businesses use both. Software handles day-to-day bookkeeping, while a registered tax agent checks deductions, GST treatment, and lodges the annual return under their own legal responsibility.
How much does small business tax software cost in Australia?
Xero’s Grow plan lists at $78 a month, and MYOB’s Lite plan lists at $315 a year (both verified 22 July 2026). QuickBooks’ exact Australian dollar figures were not visible on Intuit’s own pricing page at time of writing, so treat any figure as an estimate until confirmed directly at quickbooks.intuit.com/au.
What's the difference between tax software and a registered tax agent?
Software calculates and stores your figures. A registered tax agent, regulated by the TPB under the Tax Agent Services Act 2009, is the only party legally allowed to charge a fee to prepare or lodge a return on your behalf.
Can sole traders use the same tax software as companies?
Yes, with caveats. Sole traders can generally use entry-level plans from Xero, MYOB or QuickBooks, while companies with payroll or multiple GST-registered activities usually need a higher tier or add-ons for full functionality.
What happens if my tax software makes a mistake on my BAS or tax return?
The responsibility for an incorrect lodgement still sits with the business owner, even if software produced the figures. A registered tax agent carries professional obligations under the TPB’s Code of Professional Conduct, which is one reason many businesses have a person review the numbers before lodging.
