Xero has just confirmed another round of price increases for Australian subscribers, effective 1 July 2026. Every business plan is going up, and the multi-organisation discount is being removed at the same time.
If you’re a sole trader, this one stings more than most. The plans most solo operators sit on – Ignite and Grow – are both increasing, and you’re paying for a platform built around features you may never touch: multi-employee payroll, inventory, multi-currency, project tracking.
Here’s exactly what’s changing, what it costs you over a year, and why EOFY is the smartest possible time to move to software actually built for sole traders.
What’s changing on 1 July 2026
From 1 July 2026, Xero’s Australian business plans move to the following pricing:
| Xero plan | Current price | New price (from 1 July 2026) |
| Ignite (1 payroll employee) | $35/mo | $37/mo |
| Grow (2 payroll employees) | $75/mo | $78/mo |
| Comprehensive (5 payroll employees) | $100/mo | $107/mo |
| Ultimate 10 (10 payroll employees) | $130/mo | $143/mo |
| Ultimate 20 (20 payroll employees) | $162/mo | $180/mo |
On top of the plan increases, Xero is removing the multi-organisation discount from 1 July 2026. If you run more than one business or ABN through Xero, your total bill rises twice – once from the new plan prices, and again from losing that discount.
This isn’t a one-off – it’s a pattern
Xero has raised Australian prices repeatedly in recent years, with increases landing almost every July. The entry-level plan that once cost under $30 a month is now $37, and the mid-tier plans have climbed even faster.
If you’re still managing your books manually or using spreadsheets, our guide on Top 10 Spreadsheet Tools: Excel to SoleApp explains when it makes sense to move to purpose-built accounting software.
Each individual rise looks small. A couple of dollars here, seven dollars there. But the direction never changes, and there’s no reason to expect July 2026 to be the last one. If you’re budgeting for your software costs, the realistic assumption is that whatever you pay Xero today, you’ll pay more next year.
Why sole traders feel this increase the most
Xero is genuinely powerful software. That’s not the issue. The issue is who it’s built for.
Every Xero plan is structured around payroll employees – Ignite includes payroll for one, Grow for two, Comprehensive for five. If you’re a sole trader with no staff, you’re paying for payroll capacity, super automation, and reporting depth designed for businesses with teams.
What most sole traders actually need is much simpler:
- Send quotes and invoices, and get paid on time
- Track expenses and snap receipts on the go
- Know what to put aside for tax and GST
- Be ready for BAS and tax time without the scramble
- Share clean records with their accountant
At $37 a month – $444 a year – you’re paying enterprise-lite prices for a sole trader workload. That’s the gap this price rise exposes.
The real cost over a year: Xero vs Sole
Sole is an Australian-made accounting app built specifically for sole traders, freelancers and the self-employed. One plan, every feature included, no forced upgrades when you send more invoices. See the full Sole vs Xero comparison for a deeper breakdown.
| Xero Ignite (from 1 July 2026) | Sole | |
| Monthly cost | $37/mo | $14.99/mo |
| Annual cost | $444/yr | $149.99/yr (annual plan) |
| Free tier | No | Yes – free forever tier |
| Invoices and quotes | Limited on entry plan | Unlimited |
| Built for | Broad market, employees, payroll | Australian sole traders and freelancers |
| Support | Online support | Australian-based support |
On the annual plan, Sole costs $149.99 a year – versus $444 a year for Xero Ignite from July. That’s nearly $300 back in your pocket every year, for software that does the job a sole trader actually has.
And if you’re just starting out or your needs are minimal, Sole’s free forever tier means your accounting software can cost exactly $0.
What you get with Sole for $14.99 a month
- Unlimited invoices and quotes with custom branding, auto-reminders and payment tracking
- Real-time tax and GST tracking, so you always know what to set aside
- Expense tracking and receipt capture from your phone
- Bank feeds with easy transaction matching
- BAS-ready reports and a real-time cash flow dashboard
- Easy collaboration with your accountant – everything organised in one place
- Australian-made, with local support that actually answers
No modules to add. No plan tiers to decode. No “success tax” when your business gets busier.
Why EOFY is the right time to switch
The timing of Xero’s increase – 1 July – lands exactly at the start of the new financial year. That’s frustrating if you stay, but it’s actually the cleanest possible moment to leave.
Switch before 30 June and you start the 2026–27 financial year with fresh books in one system. No mid-year data split, no juggling two platforms across a tax return. Your accountant gets one clean set of records from day one.
Move now and the July price rise simply never lands on your invoice.
How to switch from Xero to Sole
- Start your 30-day free trial of Sole – no lock-in, full feature access
- Connect your bank feed and import your client and contact details
- Send your first invoice (it takes about two minutes)
- Run Xero and Sole side by side until 30 June if you want the safety net
- Cancel your Xero subscription before the new pricing kicks in on 1 July
If you can send a text, you can use Sole. Most sole traders are fully set up in under an hour.
Frequently asked questions
How much is Xero increasing prices in July 2026?
From 1 July 2026, Xero’s Australian plans increase across the board: Ignite moves from $35 to $37/mo, Grow from $75 to $78/mo, Comprehensive from $100 to $107/mo, and Ultimate plans rise by up to $18/mo. The multi-organisation discount is also being removed.
Do sole traders need Xero?
Not necessarily. Xero is built for businesses with employees, payroll and complex needs. Most sole traders only need invoicing, expense tracking, tax/GST visibility and BAS-ready reports – which purpose-built tools like Sole provide at a fraction of the cost.
What is the best Xero alternative for sole traders in Australia?
Sole is an Australian-made accounting app designed specifically for sole traders and freelancers. It includes unlimited invoicing, expense tracking, real-time tax tracking and bank feeds for $14.99/mo flat, with a free tier available.
Can I switch from Xero mid-year?
Yes, but EOFY is the cleanest time. Switching before 30 June means you start the new financial year with all your records in one system, which keeps things simple for you and your accountant.
Don’t pay the increase – switch before 1 July
Xero’s new prices land on your first invoice after 1 July 2026. Between now and then is your window to move.
Start your 30-day free trial of Sole today – and start the new financial year paying $14.99 a month instead of $37, for software that was actually built for you.
