Xero Alternatives for Australian Small Business (2026)
Xero lifted its Australian prices again on 1 July 2026, and if you opened that renewal email with a sigh, you're in good company. Xero is still excellent software — but "excellent" and "worth what you're paying for what you actually use" are different questions. Here's an honest look at the alternatives, what they really cost, and who each one suits.
What Xero costs now
As at August 2026, Xero's Australian plans run $37 a month (Ignite), $78 (Grow), $107 (Comprehensive) and from $143 (Ultimate). The July rise added $2–$28 a month, and Xero also scrapped its multi-organisation discount — an extra hit if you run more than one entity.
The entry-level Ignite plan is the sore point. At $444 a year it caps you at 20 invoices and quotes plus 5 bills a month. Send your 21st invoice and you're pushed to Grow at $78 a month — $936 a year. For a sole trader doing straightforward work, that's a lot of software.
To Xero's credit, payroll (with Single Touch Payroll reporting and super) is now built into every plan — one employee on Ignite, two on Grow, five on Comprehensive, ten on Ultimate. If you employ people, that changes the maths, and we'll come back to it.
The alternatives at a glance
| Software | From (per month) | Payroll | BAS/STP | Bank feeds | Best for |
|---|---|---|---|---|---|
| Xero (Ignite) | $37 | 1 person included | Yes / Yes | Yes | Staying put, bookkeeper-friendly |
| MYOB (Lite) | ~$26 billed annually | +$3 per employee (max 2 on Lite) | Yes / Yes | Yes | Xero-style features for less |
| QuickBooks Online (Simple Start) | $33 | Add-on via Employment Hero | Yes / via add-on | Yes | Price-conscious, strong reporting |
| Reckon One | ~$24 | +$16 for up to 4 employees | Yes / Yes | Yes | Cheapest full package |
| Square | $0 (pay per transaction) | No | Sales reports only, no STP | No | Micro retail and service, POS |
| Hnry | 1% of income, capped at $1,500 +GST/year | N/A (no employees) | Lodged for you | Income runs through your Hnry account | Sole traders and freelancers |
All prices as at August 2026. Some vendors quote excluding GST and most run heavy first-six-months discounts, so check the current price on the vendor's site before you commit. For the full feature-by-feature rundown, see our Best Accounting Software (2026) guide.
MYOB: the traditional rival
MYOB has been the other name in Australian accounting for thirty years, and its cloud product (MYOB Business) is now a genuine Xero equivalent: unlimited invoicing on the Pro plan, bank feeds, GST tracking, BAS-ready reports and STP payroll.
Pricing (as at August 2026): Lite works out around $26 a month billed annually, Pro is $70 a month, and payroll is $3 per employee per month on both — Lite caps at two employees, Pro is unlimited. Solo by MYOB, a mobile-only app for sole operators, is $99 a year — about as cheap as real accounting software gets.
The honest assessment: the interface is less loved than Xero's, the app marketplace smaller, and support gets mixed reviews. But most bookkeepers handle MYOB happily, compliance is solid, and it undercuts Xero at every tier. If you want "Xero but cheaper", this is the default answer.
QuickBooks Online: the price-led challenger
QuickBooks is the world's biggest small business accounting platform, and in Australia it competes hard on price: Simple Start at $33 a month, Essentials at $60, Plus at $84 (as at August 2026, GST inclusive) — with unlimited invoicing even on the cheapest plan, which immediately beats Xero Ignite's 20-invoice cap.
The reporting and expense tracking are genuinely good, receipt capture is built in, and the mobile app is arguably the best of the bunch. The catch is payroll: it runs through QuickBooks Payroll, powered by Employment Hero, at extra cost — budget around $6 per active employee per month for the Standard tier, more for Advanced (check current rates before signing up). With staff, that gap between QuickBooks and Xero narrows fast, and the integration is one more moving part when STP reporting goes wrong at 5pm on payday.
Best for businesses with no employees (or one or two) that invoice a lot and want proper books without Xero's price tag.
Reckon One: the cheapest full package
Reckon is the quiet achiever — an Australian company, listed on the ASX, that's been doing accounting software since before the cloud existed. Reckon One gives you invoicing, bank feeds, GST and BAS tracking and 50-plus reports from around $24 a month (as at August 2026), with payroll at a flat $16 a month for up to four employees or $32 for up to ten — flat, not per head, which is rare and adds up in your favour.
Two other points in its favour: unlimited users on every plan (Xero charges by plan tier for capability, MYOB and QuickBooks limit seats), and local support. The trade-offs are a smaller ecosystem, fewer integrations, and an interface that feels a generation behind. Fewer bookkeepers work in it day-to-day, so ask yours first.
If your books are simple and you're watching every dollar, Reckon One is the cheapest way to get genuinely compliant, full-featured accounting software in Australia.
Square: free invoicing and POS, up to a point
Square isn't accounting software — and that's exactly why it belongs on this list. If you're a market stall, mobile hairdresser or one-person trade, you may not need a general ledger — just payments, invoices and a view of what came in.
Square's standard plan costs nothing a month. You pay per transaction: 1.6% for in-person tap payments, 2.2% when a customer pays an online invoice by card (as at August 2026). Sending invoices is free. The free POS app is genuinely excellent — inventory, receipts, sales reports — and it's why so many cafes and retailers run on it. Note that surcharging card fees to customers on eftpos, Visa and Mastercard is being phased out from 1 October 2026, so build those fees into your prices.
Where it caps out: no bank reconciliation, no expense-side books, no BAS figures beyond sales reports, and no payroll or STP in Australia. The moment you hire staff or your accountant asks for a proper profit and loss, you'll need real accounting software — Square then becomes the payments layer feeding into it, a job it does well.
Hnry: a different animal entirely
Hnry isn't software you drive — it's a service that does the driving. Built for sole traders, freelancers and contractors, it works like this: your income gets paid into your Hnry account, and Hnry automatically deducts and pays your income tax, GST, Medicare and super as the money arrives, then lodges your BAS and income tax returns for you, with real accountants behind it.
The price is a percentage, not a subscription: 1% of the income passing through, plus GST, capped at $1,500 +GST a year (as at August 2026). Earn $60,000 and it costs about $600. Earn nothing this month, pay nothing.
The honest trade-offs: it only works if your clients pay into the Hnry account, it's not for companies, trusts or anyone with employees, and past roughly $150,000 of income you hit the cap anyway — at which point a cheap subscription plus an accountant may cost less. But if you're a freelancer who dreads tax time and just wants it handled, nothing else on this list removes admin the way Hnry does. New to sole trading? Start with our Sole Trader in Australia guide.
What "free" really costs
Genuinely free accounting tools exist — free tiers, open-source packages, and the trusty spreadsheet. Before you leap, weigh what you're giving up.
Support is the first casualty: when your bank feed breaks in week one of a new quarter, free products offer a forum, not a phone number. Australian compliance is the second: many free tools are built overseas and can't produce proper BAS figures — and if you employ anyone, STP is mandatory, so the software must be STP-enabled (the ATO keeps a register of no-cost and low-cost STP products for employers with up to four staff). Third is your bookkeeper: an hour spent untangling an unfamiliar tool costs more than a month of Reckon One. And getting years of data out of a discontinued free product is nobody's idea of fun.
Free works for pre-revenue side hustles. Once real money moves, the $24–$35 a month for proper software is some of the cheapest insurance you'll buy. If BAS is new territory, read BAS and GST Explained first.
Which one should you pick?
Solo tradie, no employees. Reckon One or MYOB Solo gets you compliant books for under $10 a week. If you mostly need to quote, invoice and take card payments on site, Square's free tools may be all you need for now. Xero Ignite's 20-invoice cap makes it a poor fit for busy trades.
Freelancer or contractor. Hnry, if your clients will pay into it and you want tax handled end to end. If you'd rather keep control (or you're near the fee cap), QuickBooks Simple Start at $33 gives you unlimited invoicing and solid books.
Retail, cafe or anything with a counter. Square for POS and payments, full stop — it's free and best in class. Pair it with Reckon One, MYOB or QuickBooks for the actual accounting once turnover justifies it, and sync the sales across.
Growing team with payroll. This is where Xero's bundled payroll earns its price rise — five employees on Comprehensive with no per-head fees is competitive. Compare it honestly against MYOB Pro ($70 plus $3 a head) and Reckon's flat-rate payroll at your actual headcount before you decide anything.
Switching: timing and logistics
If you do move, time it for the end of a BAS quarter — 30 September is the next natural cut-off — so one system holds each quarter's figures cleanly. Check your lodgement deadlines in BAS Due Dates 2026-27 and don't switch mid-quarter or, worse, mid-payroll-year.
Before cancelling anything, export everything: chart of accounts, contact lists, open invoices and bills, and PDF copies of your key reports (P&L, balance sheet, aged receivables) for every prior year. Most rivals import Xero data, and MYOB and QuickBooks both offer migration tools or services — but historical detail rarely transfers perfectly, so those exports are your archive.
Finally, talk to your bookkeeper or accountant first — their fluency affects your fees more than the subscription price does; someone fast in Xero may cost you more in a cheaper tool they barely know. If you don't have one, here's who does what.
Key takeaways
- Xero's July 2026 rises ($2–$28 a month) and the 20-invoice cap on its $37 Ignite plan are pushing plenty of businesses to shop around — with good reason.
- MYOB is the closest like-for-like swap and undercuts Xero at most headcounts; Reckon One is the cheapest complete Australian package at around $24 a month.
- Square costs nothing monthly and suits micro businesses brilliantly, but it isn't accounting software — no STP, no BAS, no expense books.
- Hnry (1% of income, capped at $1,500 +GST a year) suits sole traders who want tax done for them, not another app to run.
- If you employ staff, compare payroll costs per head — Xero's bundled payroll can actually be the better deal for teams.
- Switch at BAS quarter end, export everything first, and ask your bookkeeper before you commit.
Where to get help
- ATO — STP requirements and the register of no-cost and low-cost STP software for micro employers.
- business.gov.au — guidance on choosing digital tools and record-keeping obligations.
- Tax Practitioners Board — check your bookkeeper or BAS agent is registered before they touch your lodgements.
- ACCC — card surcharge rules and your rights with software subscriptions.
- Your accountant — the right software is the one your adviser works fastest in; ask them before you switch.
General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — confirm current figures with ato.gov.au or your accountant before acting.