Xero Pricing in Australia:
A Complete Breakdown of Plans and Costs (2024–2025)
Xero has significantly updated its pricing and plan structure for Australian users in 2024, introducing new plans and phasing out legacy options. Here’s a comprehensive breakdown of the current Xero pricing in Australia, including key changes, plan features, and what they mean for businesses.
Current Xero Plans and Pricing (as of July 2024)
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Plan Name | Monthly Cost (AUD, incl. GST) | Key Features | Users Included | Additional User Cost |
Ignite | $35 | Send quotes & 20 invoices, enter 5 bills, basic accounting essentials, no payroll | 1 | $5 per user |
Grow | $70 | Unlimited invoices & bills, payroll for 1 employee, 1 expense user, more advanced features | 5 | $5 per user |
Comprehensive | $90 | Unlimited invoices & bills, payroll for 6–200 employees, auto super, 10 expense users | 10 | $5 per user |
Ultimate | $115 | All Comprehensive features, payroll for 10+ employees, Xero Expenses & Projects (10 users) | 10 | $7 per user |
All prices in AUD and include GST. Xero reserves the right to change pricing at any time.
Key Plan Details
- Ignite: Entry-level plan, suitable for sole traders or very small businesses. Invoice and bill limits apply. No payroll included.
- Grow: Designed for small businesses needing payroll for a single employee. Unlimited invoicing and bills. Includes one expense user1.
- Comprehensive: For growing businesses with more employees (6–200). Includes advanced payroll, auto superannuation, and more expense users.
- Ultimate: For larger businesses. Adds enhanced project and expense management, more payroll capacity, and advanced analytics.
Recent and Upcoming Changes
- Legacy Plans Phased Out: Starter, Standard, Premium, and Payroll Only plans are being discontinued. All users will be migrated to the new plans by March 2025.
- Payroll Only Plan Discontinued: The Payroll Only plan increased from $15 to $20/month in July 2024 but will be fully discontinued by March 2025. Businesses needing payroll must now use Grow ($70/month, payroll for 1) or Comprehensive ($90/month, payroll for 6+).
- Price Increases: All major plans saw price hikes in July 2024. For example, the Starter plan rose from $32 to $35/month, Standard from $65 to $70/month, and Premium 5 from $85 to $90/month.
- Add-ons Bundled: Features like Xero Expenses and Projects are now bundled into higher-tier plans, rather than available as separate add-ons.
Transition Details for Existing Users
- Existing users on legacy plans will be automatically migrated to the new structure by March 2025, often resulting in higher monthly costs.
- Some users may see substantial price increases, especially those who previously used payroll for a single employee, as the entry-level payroll plan now costs significantly more.
Promotional Offers
- Xero occasionally offers introductory discounts (e.g., 90% off for the first 3 months for new subscribers, or 75% off for 5 months), but these are time-limited and only for new customers.
Summary Table: Xero Plan Changes (2024–2025)
Legacy Plan | Old Price | New Plan | New Price |
Payroll Only | $15 | Discontinued | N/A |
Starter | $32 | Ignite | $35 |
Standard | $65 | Grow | $70 |
Premium 5 | $85 | Comprehensive | $90 |
Premium 10–100 | $99–$205 | Ultimate 10–100 | $115–$245 |
What This Means for Australian Businesses
- Small businesses with minimal payroll must face higher entry costs for payroll functionality.
- Growing businesses benefit from more bundled features and simplified plan choices.
- Larger businesses will see enhanced features in the Ultimate plan but at a higher price point.
“Currently, if a business owner wanted to pay themselves from their small business, they could subscribe to Xero’s Starter Plan, which provides payroll access for 1 employee, at a subscription cost of $32 per month. From 1 July 2024, the owner would need to move to Xero’s new ‘Grow’ Plan, at a subscription cost of $70 per month – an increase of 118.75%.”
Conclusion
Xero’s 2024 pricing overhaul in Australia simplifies its plan lineup but results in higher costs for many users, especially those needing payroll. Businesses should review their needs and consider the new plan features and pricing to ensure the best fit for their accounting and payroll requirements.
