If you use Xero to manage your business accounts, you have likely noticed the subscription costs climbing over the past couple of years. The latest 2026 Xero price increase in Australia takes effect from July 2026, and we want to make sure you are across what is changing and what, if anything, you should do about it.
What happened in July 2025?
From 1 July 2025, Xero's Grow, Comprehensive and Ultimate plans in Australia saw monthly price increases. Grow rose to $75 per month, Comprehensive to $100 per month, and Ultimate 10 to $130 per month. The Ignite plan remained at $35 per month. These changes applied to both new and existing subscribers.
Alongside the pricing changes, from 1 June 2025 Xero included payroll and automated superannuation in all business plans, features that were previously optional add-ons incurring additional cost. For businesses already paying for payroll separately, that consolidation partially offset the price increase.
What's coming in July 2026?
Xero is lifting prices again from 1 July 2026, with increases ranging from 4% to 13% depending on the plan. In dollar terms, most customers are expected to pay around $3 to $7 more per month.
From 1 July 2026, Xero is also removing the multi-organisation discount for eligible subscriptions. If you manage multiple businesses through Xero or have relied on that discount, this is worth flagging to us now so we can review what it means for your subscription costs. Any standard promotional code or discount currently on your account will continue to be honoured until it expires.
The current plan structure
All Xero plans include payroll up to a headcount limit, bank reconciliation, invoicing, BAS preparation, and Single Touch Payroll reporting. The main differences between plans are the number of employees included in payroll and access to multi-currency and Projects features.
The four plans currently sit at Ignite ($35 per month, one payroll employee), Grow ($75 per month, two payroll employees), Comprehensive ($100 per month, five payroll employees, multi-currency), and Ultimate 10 ($130 per month, ten payroll employees). Additional employees beyond your plan's payroll limit cost $5 per person per month, so it is worth checking with us whether upgrading to the next plan tier is cheaper than continuing to pay overages.
What we'd suggest you do now
The most useful thing to do before July 2026 is review which plan you are on and whether it still fits your business. We are happy to help with this, and there are a few things worth considering in the meantime.
- Are you using all the features included in your current plan? If you are on Comprehensive but do not use multi-currency or Projects, Grow may be sufficient and cheaper.
- Are you paying overage charges for additional payroll employees? If so, stepping up a plan tier may cost less than your current combination of base plan plus overages.
- If you were relying on the multi-organisation discount, factor in its removal from July and let us know if you would like us to review your overall subscription setup.
Xero has raised prices every year since 2021, so it is worth building the expectation of ongoing annual increases into your software budgeting rather than treating each one as a surprise.
How we'll handle the updated fees
We will be sending a separate proposal outlining the updated Xero subscription fees as they apply to your account. This will be issued independently from any other direct debits you currently have with us, so you will have a clear view of the Xero cost on its own. If you have any questions about the proposal or would like to discuss your plan before it is confirmed, just reach out to your Prime Partners accountant.
A note on Payday Super
One change worth flagging alongside the Xero pricing update is the introduction of Payday Super from 1 July 2026. From that date, superannuation must be paid with every pay run rather than quarterly. Having automated super built into the Xero plan rather than managed separately reduces the risk of a missed payment triggering the superannuation guarantee charge under the new regime. If your current setup does not have auto super running correctly inside Xero, now is a good time to sort that out before the obligation kicks in.
If you would like to talk through which Xero plan makes sense for your business, or how the upcoming changes affect what you are paying, get in touch with your Prime Partners adviser. We work across these platforms every day and can make sure you are on the right plan without paying for features you do not use.
