Xero pricing Australia: Plans, costs & features guide

Xero is one of the most popular accounting software tools with 4.6m+ subscribers globally. For small Australian businesses, it offers a simple way to manage finances and reduce the administrative burden of bookkeeping and reporting. Still, one question that regularly crops up is: how much does Xero cost?

This guide will divulge all the pricing details with a full breakdown of the plans in Australia, covering the features included, what you’ll pay, and some ‘best for’ recommendations. There’s also an introduction to Wise Business — a multi-currency account you can integrate with Xero to manage and reconcile all your global transactions.

Table of contents
What is Xero used for? Xero pricing plans Are there hidden costs? Choosing the right plan for your business Wise Business for global financial reconcilation FAQs

Sign up for the Wise Business account! 🚀

What is Xero used for?

Xero is cloud-based accounting software that helps businesses manage their finances and sort bookkeeping. You can sign up to Xero and start using it straight away to pay bills, send invoices, claim expenses, manage your payroll (and more). It brings all these things together within one simple platform, making it easier to see your financial health and make smart decisions.

Xero is suitable for most small businesses, including:

• Sole traders
• Freelancers
• Ecommerce sites
• Dropshippers
• Trades and service businesses
• Retailers

Understanding Xero pricing plans

There are four Xero business plans in Australia, each with different features and pricing: Ignite, Grow, Comprehensive, and Ultimate 10.

Here’s a breakdown of what they look like¹:

Plan	Monthly fee	Best for	Key features
Ignite	$35	Sole traders	Send invoices, capture bills and receipts, GST reporting, bank feeds
Grow	$75	Small businesses	Unlimited invoicing and bills, 2 people payroll, claim expenses, customised graphs and reports
Comprehensive	$100	Growing business	All Grow features, multi-currency accounting, advanced cash flow forecast, 5 people payroll
Ultimate	From $130	Larger businesses	All Comprehensive features, advanced KPI analysis, track projects, 10+ people payroll

Now, we’ll look at each plan in more detail, starting with Ignite.

Xero Ignite

The entry-level tier, Ignite, is the starter option for businesses. Xero markets this as an “easy financial foundation” with just the essentials. If you’re a sole trader or micro business that relies on a manual system or cash book, this might be a worthwhile “first step” if you only need basic accounting without any frills or extras.

Key features¹:

• Send quotes and 20 invoices per month
• Enter 5 bills per month - supplier invoices, recurring bills, utilities, etc.
• Reconcile your bank transactions
• Track your GST and lodge BAS statements
• Get short-term (30-day) cash flow forecasting
• Automate superannuation calculations and reporting

Things to be mindful of:

• Only support payroll for 1 employee - this can be a staff member, or in a company structure, the business owner, if paid as an employee.
• Monthly caps on invoices and bills
• Can’t claim any expenses or mileage
• No multi-currency support

Xero Grow

The next tier, Grow, is where most of Xero’s features are unlocked fully. You get free rein with invoices and bills, and access to graphs and visuals for your finances. This plan is suited to self-employed individuals and businesses that are beyond the initial startup phase and need more tools, but don’t have many employees yet.

Key features¹:

• Everything included in Ignite
• Unlimited invoices and quotes
• Unlimited bill entry
• Build customised graphs and dashboard layouts
• 2-person payroll
• Claim expenses and mileage for 1 user ($5 per additional user)

Things to be mindful of:

• If you have 3+ employees, you’ll need to upgrade to Comprehensive
• No multi-currency support
• No advanced reporting

Xero Comprehensive

Xero Comprehensive is the plan for most “micro” businesses. It adds advanced payroll capabilities plus multi-currency accounting for the first time, and you get more granular reports and analytics.

Key features¹:

• Everything included in Grow
• 5-person payroll
• 90-day clash flow forecast
• Claim expenses and mileage for 5 users
• Multi-currency support
• Advanced cash flow predictions
• Multiple performance dashboards

Things to be mindful of:

• If you have 6 or more employees, you’ll need Ultimate 10.
• Expenses claims and mileage match the payroll cap (5 people).

Comprehensive is best for businesses with 2 to 5 employees, as well as importers, exporters, and other businesses that trade internationally. If you’re a dropshipper buying goods from overseas and working for yourself, you’ll still need to select this tier, as it’s the first to let you manage multiple currencies.

Xero Ultimate

Xero’s top tier is a “professional-grade” accounting infrastructure. It’s geared towards fast-growing small to medium-sized businesses with bigger teams that require more sophisticated reporting and analytics.

For example, this might work for a software company with 18 employees operating in Australia and New Zealand, managing payroll in multiple currencies while tracking expenses for a distributed team. Ultimate 20 provides capacity for current staff with room to grow.

Key features¹:

• Everything included in Comprehensive
• 10-person payroll (with option to upgrade to 200 people)
• 180-day cash flow forecast
• Claim expenses and mileage for 10 users ($5 per additional user)
• Advanced KPI analysis
• Track projects for 10 users

Things to be mindful of:

• There’s lots of flexibility to scale payroll, but select your tier carefully. Ultimate 10 only works for 10 employees, for example. If you hire an 11th employee, you’ll have to upgrade to Ultimate 20.

Are there hidden Xero accounting costs?

The Xero charges listed in the previous section are in plain sight; outlined upfront in detail on Xero’s pricing page. However, there are other additional costs that are easy to overlook. These should also be factored in when calculating the Xero cost per month.

‘Additional user’ fees

Xero’s expenses and payroll features come with set allowances for each tier. For example, you can claim expenses and mileage for 5 users with the Comprehensive plan. If you need support for any additional users, outside these allowances, you’ll need to pay a $5 fee per person¹. This is true across all tiers.

Payroll for bigger businesses

Xero’s Ultimate 10 Plan comes with a 10-person payroll, as standard. However, there is the option for a monthly plan with 100 people, with fees for additional users up to 200 people¹.

Third-party app subscriptions

You can connect 1,000+ apps to Xero through the official Xero app store. While these tools enhance functionality, many do charge separate fees, either as a standalone purchase or subscription costs. For this reason, when integrating any third-party apps, make sure to check the costs involved.

Payment gateway fees

If you add Stripe or PayPal to take advantage of the “Pay Now” buttons on Xero invoices, these payment processors will charge a transaction fee (typically 1.7% plus $0.30 AUD for domestic cards)². These are not Xero fees, but it’s still good to be aware of the costs of getting paid faster.

Now that we’ve covered all the costs involved, let’s look at how to match Xero pricing plans with your specific business requirements.

How to choose the right Xero pricing plan for your business

Xero is geared towards startups, but its plans can be moulded to different business types and sizes. To find the right one for you, you’ll need to evaluate your current needs and match them to features available in each tier, also with an eye on your near-term growth plans.

The good thing is, you can upgrade and downgrade to a different plan when it’s convenient for you. You aren’t locked into anything for a specific period, though you do have to give 1 month’s notice before leaving if you want to cancel your sub³.

1. Calculate your monthly invoice volume - Fewer than 20, and Ignite might work. Any more, and Grow should be your base tier.
2. Assess employee situation - Solo operators without staff should stick to Ignite or Grow, depending on invoice volume. Small teams with payroll need Comprehensive.
3. Evaluate multi-currency requirements - If all your transactions are in AUD, lower tiers work fine. If you’re a global business, go for Comprehensive and higher.
4. Consider growth over the next 12 months - Try to choose a plan that takes short-term hiring plans and growth into account.
5. Review your must-have feature requirements - Make a list of essentials and match them against the features in each plan.
6. Factor in budget constraints - Be realistic about what you can afford per month.

Summing up all that info, here’s a general guide or “rule of thumb” for Xero plans:

• Sole traders → Ignite
• Most micro businesses operating just in Australia → Grow
• Global or fast-growing businesses → Comprehensive
• Larger businesses with lots of staff → Ultimate

Handling international transactions? Connect Xero to Wise Business

Choosing a Xero plan that supports multi-currency accounting is a great step for global trade, but you also need a cost-effective way to actually move that money.

Fortunately, Xero integrates with Wise Business, a multi-currency business account that lets you complete international transfers with no hidden markups on the [real, mid-market rate] and transparent fees, saving you money every time.

You can pay overseas suppliers or receive funds at the mid-market rate, and because the account feeds directly into Xero, it helps simplify the reconciliation process so your books stay accurate without constant manual input.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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FAQs on Xero pricing

1. Does Xero have a free plan?
No, Xero doesn’t offer a free plan in Australia. Every subscription has a monthly fee with “add-ons” for things like claiming expenses and tracking projects. For example, the entry-level tier, Ignite, typically costs a flat rate of $35 per month. However, Xero does routinely offer 30-day free trials and introductory discounts for new users.

2. Can I change my Xero plan later?
Yes, Xero lets you upgrade (or downgrade) your plan at any time after the first 30 days⁴. The changes usually take effect from the next billing cycle. This flexibility is useful for small businesses that may need to scale up during peak seasons or those that hire new staff and require a higher payroll allowance.

3. Are there setup fees or cancellation fees?
Xero doesn’t charge any setup or cancellation fees. There are no contract “lock-ins” either, but there is a one-month notice period when cancelling. You can cancel your Xero subscription at any time via the settings.

4. What kind of customer support is included in each plan?
All Xero plans include 24/7 online support and access to Xero Central, a knowledge base with help articles, courses, and discussions. While Xero doesn’t offer inbound phone support, you can log a support ticket to receive an outbound call⁵. There are also no ‘premium’ customer service features for higher tiers.

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Sources:

1. Xero Australia - Pricing plans
2. Stripe Australia - Pricing
3. Xero - Offer details
4. Xero - Changing pricing plan
5. Xero - Contact support