Xero and MYOB are the two names most Australian small businesses shortlist first, and for good reason. Both are built locally, both lodge straight to the ATO, and both have moved fully to the cloud. The real question is not which is the bigger brand, it is which one fits the way you actually run your books and pay your people.
How much do Xero and MYOB cost?
The two start at a similar price in 2026: MYOB Business Lite is $35 a month against Xero's Ignite plan at $37, and MYOB Business Pro ($70) sits just under Xero's Grow tier. The catch on Xero's entry plan is a cap of 20 invoices a month, so a business that sends more than that is pushed up to Grow sooner. At the very top, MYOB's AccountRight is dearer than Xero's Comprehensive plan, because AccountRight carries desktop grade inventory and job tracking that Xero keeps in its mid tiers. The comparison table on this page shows each plan's current price in Australian dollars.
The headline price is only half the story, because payroll changes the maths. Xero includes payroll on every plan at no per employee charge. MYOB charges $3 per employee a month on Lite and Pro. With one or two staff that is a few dollars, but with a larger team it adds up on top of MYOB's base, so Xero often lands lower once staff are counted. Use the calculator above to fold your invoice count and headcount into a single estimated monthly figure for each.
Which is better for your business, Xero or MYOB?
Xero suits growing teams that run payroll, while MYOB suits businesses that want an established local all-rounder and inventory-heavy operations. Xero's standout is unlimited users on every plan, paired with included payroll. If you have a team, a bookkeeper and an accountant all needing access, and you run a payroll, Xero is built for exactly that and does not nickel and dime you for it.
MYOB rewards two groups: sole operators and small businesses that want an established Australian all-rounder with local phone support, and established businesses that need AccountRight's deeper inventory, multi currency and job costing. Its long Australian history also means many local bookkeepers know it inside out.
Do Xero and MYOB both handle BAS, GST and STP?
Yes, both Xero and MYOB lodge BAS, track GST and report Single Touch Payroll Phase 2 to the ATO, so compliance rarely separates them. This is where both products earn their keep, and where they are closely matched. Each prepares and lodges your BAS, tracks GST automatically, and reports Single Touch Payroll Phase 2 to the ATO without a manual export. Both handle PAYG withholding and superannuation, and both keep pace with award updates so your pay runs stay compliant. For most businesses, compliance will not decide it, because neither platform leaves a gap.
Switching and migration
Moving between the two is well trodden. Xero runs a guided conversion that brings across your chart of accounts, contacts and up to two years of history, and MYOB offers a comparable path. The practical advice is the same in either direction: switch close to the end of a BAS quarter so your reporting periods do not split awkwardly, and reconcile both systems for one overlap month before you retire the old one.
Integrations and support
Xero's edge is its app ecosystem and the largest accountant network in Australia, plus 24/7 online support, which matters if you want your accounting at the centre of a wider software stack. MYOB counters with business hours Australian phone support, which many established operators prefer to chat and email, and with receipt capture and inventory depth on its higher plans.
Pros and cons for this matchup
Xero wins on unlimited users, included payroll, the widest app choice and round the clock support. Its weak spots are the 20 invoice cap on Ignite and a higher price once you step up from Ignite. MYOB wins on its established local presence, phone support and AccountRight's inventory depth, but starts mid-range on price, limits the entry plan to one user, and charges $3 per employee a month for payroll.
The verdict
For a growing Australian small business that runs payroll and wants unlimited collaborators and the widest app choice, Xero is the pick, and its included payroll often makes it the cheaper option once staff are counted. For a sole operator or small business that wants an established local all-rounder, prefers Australian phone support, or needs AccountRight's deeper inventory and job tracking, MYOB makes more sense. Both clear the compliance bar comfortably, so let team size, payroll and where you expect to be in two years decide it.