Quick answer
Xero suits you if you want payroll bundled by headcount and a plan ladder from $37 a month upward. MYOB suits you if you want a cheaper phone-only plan (Solo, $99 a year) or per-employee payroll at $5. Closest tiers by price: Xero Grow $78 vs MYOB Pro $70. Checked 11 November 2026.
How we compared: every price and plan limit on this page was read from the vendor’s own Australian pricing page on 11 November 2026. We have not run hands-on tests of these products for this article, so we do not describe how they feel to use. Rules come from the ATO. This is general information, not tax or financial advice. See our editorial policy.
Xero vs MYOB: which one suits your Australian business?
Both are Australian-market accounting products with GST and BAS support. The practical differences are how they price plans, how they handle payroll, and what each limits at the low end. We matched plans by price, not by marketing name, because the two vendors do not line up one for one.
| Best for | Software | From (per month) |
|---|---|---|
| Lowest cost, phone-only, one user | MYOB Solo | $99 a year after first-year offer |
| Entry plan billed monthly, 20-invoice cap | Xero Ignite | $37 |
| Mid-tier with payroll for a small team | Xero Grow | $78 |
| Mid-tier with per-employee payroll | MYOB Business Pro | $70 |
How do Xero and MYOB plans compare tier by tier?
| Tier (by price) | Xero | MYOB |
|---|---|---|
| Lowest cost | Ignite: $37 a month. Up to 20 invoices a month, enter 5 bills, payroll for 1 person | Solo: $99 a year, phone app only, 1 user. Business Lite: $315 a year (about $26 a month), up to 2 bank accounts |
| Middle | Grow: $78 a month. Bill entry automation, payroll for 2, expense claims for 1 user | Business Pro: $70 a month. Unlimited bank accounts, unlimited sales orders, timesheets, payroll $5 per employee |
| Higher | Comprehensive: $107 a month. Payroll for 5, expense claims for 5 users, 90-day forecast | AccountRight Plus: $165 a month. Desktop, web and app, unlimited inventory and payroll |
| Top of range | Ultimate 10, 20, 50: $143, $180, $250 a month, then Ultimate 100 at $300 | AccountRight Premier: listed without a price on MYOB’s page |
Which is better for invoicing and BAS?
Both handle invoices and GST. Xero lists “Track GST and lodge BAS” on Ignite and every plan above it. MYOB Business Lite says you can prepare and lodge your BAS directly with the ATO in the software. MYOB Solo tracks GST, but its page does not mention BAS lodgement, so check before you rely on it. For invoice content, both should meet the ATO’s tax invoice rules, but you remain responsible for the details on each invoice.
Which is better for payroll?
The pricing logic is different. Xero includes payroll for a set number of people in each plan, so a 5-person team lands on Comprehensive at $107 a month. MYOB charges $5 per employee a month on top of Lite or Pro, so five employees add $25 to Pro’s $70, about $95 a month. Both must support Single Touch Payroll if you pay employees, so confirm that on the vendor’s page. Pricing models change, so recheck before you commit.
Who should pick which?
- Choose Xero if you want a clear ladder of plans, payroll bundled by headcount, and you send under 20 invoices a month on Ignite or are happy on Grow.
- Choose MYOB if you want the lowest price (Solo, or Lite billed yearly), unlimited bank accounts on Pro, or per-employee payroll for a very small team.
- Either is a reasonable pick for a GST-registered small business. If you are unsure, use the free trial or intro offer on both and test with your own invoices.
QuickBooks is the third mainstream option. See our small business roundup or the sole trader guide.
What are the main differences feature by feature?
| Xero | MYOB | |
|---|---|---|
| Entry plan | Ignite: up to 20 invoices a month, 5 bills, payroll for 1 | Solo: phone app only, 1 user. Lite: web and app, up to 2 bank accounts |
| BAS lodgement | On Ignite and every plan above it | Lite and Pro lodge BAS with the ATO. Solo tracks GST only |
| Bank accounts | Reconciliation on all plans | Solo and Lite up to 2. Pro and above unlimited |
| Payroll | Included by headcount: 1, 2, 5, 10, 20, 50, 100 by plan | $5 per employee a month on Lite and Pro, unlimited on Pro |
| Cash flow forecast | 30 days on Ignite, 60 on Grow, 90 on Comprehensive, 180 on Ultimate | Not listed on the pricing page |
| Expense claims | 1 user on Grow, 5 on Comprehensive, 10 on Ultimate (extra users $5) | Expense tracking on Solo and Lite |
| Free trial | One-month-free option | 14 days on Pro and AccountRight Plus; none listed for Solo or Lite |
| Billing | Monthly, rolling | Monthly price shown on Pro and Plus; yearly price shown on Solo and Lite |
What would each cost your business?
Software cost per month at list price, before payment fees and extras. MYOB prices for Solo and Lite are yearly, shown as a monthly equivalent.
| Business | Xero | MYOB |
|---|---|---|
| Sole trader, under 20 invoices a month | Ignite: $37 | Solo: $8.25 (no BAS lodgement) or Lite: $26.25 |
| Sole trader, 25 invoices a month | Grow: $78 | Lite: $26.25 |
| Two employees | Grow: $78 | Lite plus 2 employees: $36.25, or Pro plus 2: $80 |
| Five employees | Comprehensive: $107 | Pro plus 5: $95 |
| Ten employees | Ultimate 10: $143 | Pro plus 10: $120 |
MYOB comes out cheaper on paper at every size here. Xero’s plans bundle more at each step, such as longer cash flow forecasts and expense claims, which is what you are paying for. Decide which of those you will actually use.
What does the first year cost with offers?
| Plan | Offer shown | First year | Year two (list price) |
|---|---|---|---|
| Xero Ignite | 80% off first 3 months ($7.40) | $355.20 | $444 |
| Xero Grow | 80% off first 3 months ($15.60) | $748.80 | $936 |
| Xero Comprehensive | 80% off first 3 months ($21.40) | $1,027.20 | $1,284 |
| MYOB Solo | Discounted first year (amount varies) | Check MYOB’s page | $99 |
| MYOB Business Lite | Discounted first year (amount varies) | Check MYOB’s page | $315 |
| MYOB Business Pro | Discounted first months (terms vary) | Check MYOB’s page | $840 |
Should you consider Reckon, QuickBooks or Zoho instead?
If price is the main driver, yes. Reckon One lists unlimited payroll on its $92 Ultimate plan, against Xero Ultimate 10 at $143 or MYOB Business Pro at $70 plus $5 per employee. QuickBooks Essentials is $66 for up to 3 users, and Zoho Books has a Free plan for businesses under A$50,000 revenue. Our small business roundup compares all of them.
How easy is it to leave?
Xero’s Ignite page says you can cancel with one month’s notice, and its pricing page says you can move to a cheaper plan one month after upgrading. MYOB says there is no minimum subscription or lock-in. For MYOB Solo, cancelling an annual plan takes effect at the end of the billing period, and MYOB says you keep read-only access for 60 days afterwards. Either way, export your records before you cancel.
What should you test in the trial?
- Create an invoice and compare it line by line with the ATO’s tax invoice list.
- Connect your real bank account and see how bank feeds and matching behave.
- Generate a BAS report if you are GST-registered, and show it to your accountant.
- If you pay staff, run a test pay run and check Single Touch Payroll reporting.
- Write down the post-offer price and set a calendar reminder before it starts.
Frequently asked questions
Is Xero cheaper than MYOB?
At the entry level MYOB is cheaper: Solo is $99 a year and Business Lite is $315 a year (about $26 a month), against Xero Ignite at $37 a month. In the middle, MYOB Pro is $70 against Xero Grow at $78. At the top, Xero Comprehensive is $107 against MYOB AccountRight Plus at $165.
Does Xero or MYOB lodge BAS?
Xero’s pricing page lists GST and BAS lodgement on every plan we checked. MYOB Business Lite’s product page says you can prepare and lodge your BAS directly with the ATO in the software. MYOB Solo lists GST tracking but its page does not mention BAS lodgement.
How does payroll pricing differ between Xero and MYOB?
Xero builds payroll into each plan for a set number of people: 1 on Ignite, 2 on Grow, 5 on Comprehensive, then 10, 20 and 50 on the Ultimate plans. MYOB charges a per-employee add-on of $5 a month on Lite and Pro, with Lite’s payroll page stating up to 2 employees.
Do Xero and MYOB offer free trials?
Xero’s pricing page offers a one-month-free option and 80% off the first 3 months for new customers. MYOB’s page lists a 14-day free trial on Pro and AccountRight Plus, and discounted first periods on Solo and Lite, but no free trial for Solo or Lite. Offer terms change, so check at sign-up.
Can I move from Xero to MYOB or back?
Yes, accountants do this regularly, but plan for the work. Export your customer and supplier lists, opening balances and recent transactions, and check how each system handles history. Xero lets you switch to a cheaper plan one month after upgrading. Ask your accountant before changing mid-year.
Should I consider Reckon or QuickBooks instead of Xero or MYOB?
Possibly. Reckon One lists unlimited payroll on its $92 Ultimate plan, and QuickBooks Essentials is $66 for up to 3 users. Both list GST and BAS support. Compare the post-offer prices, trial terms and what your accountant uses before you decide.
Update log: 11 November 2026. Prices and plan limits rechecked against each vendor’s Australian pages and the ATO’s tax invoice rules. Next check: December 2026.
Sources: Xero Australia pricing, MYOB Australia pricing, MYOB Business Lite, Solo by MYOB, ATO: tax invoices. Prices checked 11 November 2026.