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