Xero’s pricing is going up for Australian users. This guide shows firms how to respond, oncharge clients, communicate clearly, and automate billing.

Alex Millar

Co-founder & CEO

In this article

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Software disbursements

Xero’s 2025 Price Increase in Australia: How to Prepare Your Firm

Xero has announced another price rise for Australian users, with changes to several business plans taking effect from 1 July 2025. For many firms, this kind of Xero pricing update triggers the same routine: check the new pricing, update spreadsheets, figure out which clients are affected, and scramble to decide whether to absorb the cost or pass it on.

These decisions are often made under pressure, with little time to prepare or communicate clearly. The result? Inconsistent billing, lost margin, and awkward client conversations.

This guide will walk you through a best-practice approach for handling Xero’s pricing changes in Australia. It’s not just about what to do in July. It’s about setting up a repeatable, scalable process that works every Xero updates their subscription pricing.

Whether you decide to absorb the cost or oncharge it to clients, the key is having a system in place. One that gives you clarity, protects your time, and ensures your clients are treated fairly and consistently.

By the end, you’ll know exactly how to respond, what to say to clients, and how to avoid last-minute stress in future.

What’s changing from 1 July 2025

Xero is increasing the cost of several business plans from 1 July 2025. Most of the price rises affect clients on higher-tier business plans. Here’s a summary of the Xero price changes:

Grow increases to $75/month
Comprehensive increases to $100/month
Ultimate 10 increases to $130/month
Ultimate 20 increases to $162/month
Ultimate 50 increases to $222/month
Ultimate 100 increases to $272/month

Other plans will remain unchanged. That includes partner pricing, as well as the Ledger ($6.50/month), Cashbook ($15/month), and Ignite ($35/month) plans.

Xero is also including payroll and auto super in all business plans from 1 June 2025, ahead of the price rise. While this adds more functionality, it also contributes to the new pricing structure.

If any of your clients were offered discounted Xero pricing in July 2024, they will continue to receive those discounts. Now’s the time to review your client list so you know exactly who is affected and where updates may be needed.

Why price changes break firms’ processes

Most firms still rely on spreadsheets, calendar reminders or mental checklists to track which clients are on which Xero subscription or business plan. It works for a while, until something changes.

When Xero pricing shifts, there is no centralised source of truth. Teams have to scramble to check Xero subscription details, update billing manually and figure out who needs to be charged what. The process is clunky, inconsistent and easy to get wrong.

That usually leads to:

Inconsistent billing across clients
Margin erosion when you forget to oncharge Xero fees or delay it
Admin bottlenecks as you piece everything together by hand

This isn't just about the Xero price rise in July 2025. Software costs will continue to change over time. Without a proper system, you'll be stuck in the same cycle every time.

Now is the time to put something better in place.

What great firms do differently

While many firms get caught off guard by Xero price changes, the best ones follow a clear and repeatable process. They don’t just react to each Xero pricing update. They have a system that makes Xero software billing consistent, fair and easy to manage.

Here’s what that looks like in practice:

They have a clear internal policy on whether to absorb Xero subscription costs, pass them on, or add a service margin
They communicate openly and early with clients so there are no surprises
They automate Xero billing so each client is always charged the correct amount
They treat Xero fees like any other billable input, not something to quietly cover themselves

The result is a consistent experience for clients, fewer billing mistakes and more time for high-value work. This kind of process means Xero pricing changes don't become a project every time. They just get handled.

Xero’s 2025 Price Increase in Australia: How to Prepare Your Firm

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How to communicate price increases professionally

Once you’ve decided how you’ll handle the Xero price change, the next step is communicating it to clients. The firms that do this well are clear, consistent and proactive. They don’t wait for clients to notice a change on their invoice. They explain it early, and they explain it well.

Here are a few tips to guide your message:

Use plain language. Let clients know Xero is increasing their pricing and that it affects their subscription.
Be transparent. Explain that your firm is applying the update consistently across clients.
Reassure them. If you’re oncharging the Xero fee, clarify that it reflects the updated subscription and not a service fee increase.
Highlight the added value. Mention that payroll and auto super are being included in all business plans from June.
Point to automation. If you’re using a tool like Rechargly, let clients know their Xero billing is automated and handled fairly.

You can adapt Xero’s email template or use your own, but the key is to keep it simple and upfront. A clear message builds trust and avoids surprises later.

Why this is the perfect moment to fix the whole process

Xero price rises like this one can be inconvenient but they’re also a useful signal. If you're finding yourself checking spreadsheets, adjusting invoices manually, or second-guessing who’s on which Xero plan, it’s a sign that the process isn’t working as well as it could.

This is your chance to put a proper system in place. One that removes the guesswork, saves admin time and ensures clients are billed consistently. When that system is in place, Xero pricing updates stop being a disruptive event. They become just another part of running your firm smoothly.

You don’t need to solve it every time Xero changes their subscription pricing. Solve it once, with a setup that keeps working for you in the background.

Automate Xero oncharging and price changes with Rechargly

Handling Xero software billing manually is not just time-consuming. It often leads to missed charges, awkward client conversations and inconsistencies across your client base. Rechargly takes care of this by automating the entire Xero billing process, so you don’t have to.

Once set up, Rechargly adapts automatically to any changes in Xero pricing. If Xero updates their subscription fees, Rechargly updates the oncharge amount accordingly. It then collects the payment from your client and reconciles it back to Xero for you. There’s no need to update spreadsheets, change invoice templates or manually process payments.

This also makes it easier to explain to clients. You can show them a clear, consistent process that applies across the board, with no surprises and no extra admin.

Instead of reacting to each Xero price rise, you’re operating with a system that just works every time.

Take control of your Xero billing

Price changes are a normal part of using cloud software. They may not always come at a convenient time, but they do not have to throw your processes off course.

By setting up a clear approach to managing Xero subscription costs, you can stay consistent, protect your margins and avoid awkward last-minute billing updates. Whether you are passing on the cost, adding a margin or simply keeping clients informed, the key is having a system you can trust.

Rechargly gives you that system. It adapts to Xero pricing changes, charges the right client at the right time and keeps everything reconciled in Xero without the manual lift.

If you want to get ahead of this price rise and the next one, now is the time to get started.

Try Rechargly for free or book a walkthrough to see how it works in your firm.