Xero vs MYOB — Australia 2026

Xero vs MYOB payroll-specific comparison for AU businesses. Modern Award interpretation, STP Phase 2, Payday Super readiness & super clearing.

Last verified 2026-03-16

Quick Verdict

MYOB wins on Modern Awards; Xero wins on Payday Super readiness

For pure payroll compliance, MYOB's 5/5 Modern Award auto-interpretation with auto-rate updates beats Xero's 4/5 partial coverage. However, Xero is confirmed Payday Super ready while MYOB is still roadmapped for Q2 2026. MYOB includes payroll in its Pro plan at no extra cost and offers phone support; Xero charges a $13/mo payroll add-on but integrates with 1,000+ apps. Choose MYOB for hospitality or complex award workforces; choose Xero if Payday Super readiness is your top priority.

Feature Comparison

Feature	Xero	MYOB
Headquarters	Wellington, NZ (AU operations in Melbourne)	Melbourne, VIC
Entry Price	$35/mo	$35/mo
BAS Lodgement	Direct ATO lodgement via Standard Business Reporting — prepare, review, and lodge your BAS without leaving Xero. No need to log into the ATO portal or use a separate tax agent portal.	Direct BAS lodgement to the ATO via Standard Business Reporting (SBR). Prepare, review, and lodge BAS within MYOB. Supports quarterly and monthly BAS reporting.
STP Phase 2	compliant	compliant
Payday Super	ready	ready
Modern Awards	Supports common Modern Awards natively via Xero Payroll. Complex award interpretation (hospitality penalty rates, retail casual loadings) may require Employment Hero or KeyPay integration for full automation.	MYOB updates award libraries when Fair Work changes rates, but changes must be manually re-applied to employee setup. Deep award interpretation (auto-calculation of penalty rates, overtime, and allowances) requires third-party add-on like QuokkaWorks Award Interpreter from the MYOB marketplace.
Bank Feeds	Big 4 + 50+ banks	Big 4 + 130+ banks
Data Hosting	AU	AU
AU Support Hours	24/7 online support	Mon-Fri 7am-7pm AEST
Phone Support	No	Yes
Integrations	1000+ apps	350+ apps

Pricing Comparison (AUD, Mar 2026)

Xero Plans

Ignite

$35/mo

AUD inc GST

✓Invoices: 20
✓Bills: 5
✓Bank Reconciliation: Yes

MYOB Plans

Lite

$35/mo

AUD inc GST

✓Invoices: unlimited
✓Bills: basic
✓Bank Reconciliation: Yes

AU Compliance Scores

How we scoreScores are out of 5 and reflect depth of compliance support, ease of setup, and ongoing reliability for Australian businesses. Assessed March 2026.

Xero

BAS Lodgement

5/5

STP Phase 2

5/5

Payday Super

5/5

Modern Awards

4/5

GST Handling

5/5

Bank Feeds

5/5

MYOB

BAS Lodgement

5/5

STP Phase 2

5/5

Payday Super

5/5

Modern Awards

3/5

GST Handling

5/5

Bank Feeds

5/5

Pros & Cons

Xero

Pros

Australia's most widely-used accounting platform — your accountant almost certainly knows it
Deepest bank feed coverage with 50+ AU banks including all Big 4 (CBA, NAB, Westpac, ANZ)
Direct BAS lodgement to ATO via Standard Business Reporting (SBR) — no need for the ATO portal
Largest app marketplace with 1,000+ integrations (Deputy, ServiceM8, Employment Hero, Shopify, etc.)
AU-hosted data on AWS Sydney with SOC 2 Type II and ISO 27001 certification
Payday Super ready for the July 2026 deadline with automatic super payments each pay run
Payroll now included in all plans at no extra cost (STP Phase 2 compliant)
24/7 online support with callback service

Cons

Most expensive of the major accounting platforms — Grow plan is $75/mo (was $52 before July 2025)
Ignite plan limited to 20 invoices and 5 bills per month, pushing most businesses to $75/mo Grow plan
No inbound phone support — callback service only, which may not suit everyone
Complex Modern Award interpretation (hospitality, retail penalty rates) requires third-party add-on like Employment Hero or KeyPay
Prices have increased significantly and repeatedly — Grow went from $52 to $75 in July 2025 alone
No annual billing discount — all plans are monthly billing only

MYOB

Pros

Australian phone support at 1300 555 666 (Mon-Fri 7am-7pm AEST) — Xero doesn't offer this
Payroll for unlimited employees included in Pro plan ($70/mo) — no per-employee add-on cost
130+ Australian bank feed connections — one of the broadest coverages available
Direct BAS lodgement to ATO via Standard Business Reporting (SBR)
Payday Super already available to switch on ahead of the July 2026 deadline
Genuinely Australian-owned, Australian-hosted, Australian-supported
14-day free trial to test before committing
Annual billing discount available (e.g., Pro drops from $70 to $52.50/mo)

Cons

Smaller app marketplace (350+ vs Xero's 1,000+) — fewer third-party integrations
Modern Award interpretation requires third-party add-on (QuokkaWorks) for full automation
AccountRight Plus is expensive at $165/mo for multi-currency and inventory features
UI feels less modern and polished compared to Xero
Market share declining — now approximately 20-25% vs Xero's dominant position
Shorter free trial (14 days vs Xero's 30 days)

Who Should Choose Xero

Xero is best suited for businesses that need small business, sole trader, accountant managed.

Choose Xero if you are:

Small Business
Sole Trader
Accountant Managed
Growing Business

Who Should Choose MYOB

MYOB is best suited for businesses that need employer with payroll, phone support needed, au owned preference.

Choose MYOB if you are:

Employer With Payroll
Phone Support Needed
Au Owned Preference
Hospitality
Retail