Last updated: 18 September 2026. Written by the FreeMyCloud team.
For Australian payroll, the Xero vs MYOB question is closer than it used to be, because both now do the same core job. Both report Single Touch Payroll to the ATO every pay run, both calculate PAYG withholding, leave and 12% super guarantee, and both pay super through a built-in clearing house fast enough for payday super’s 7 business day rule. The differences that decide the choice are elsewhere: how each one charges as headcount grows, whether rosters and timesheets are built in, and the fact that neither product interprets a modern award on its own. As a rule of thumb, Xero is the simpler and often cheaper option for a service business paying up to about ten people; MYOB pulls ahead where the business also needs inventory, or once the team is large enough for a flat-fee unlimited payroll plan to beat a per-employee charge.
This article compares Xero and MYOB on Australian payroll only: STP reporting, payday super, award handling, employee self-service, and what each costs at two, five and ten employees. It does not compare invoicing, bank feeds or reporting, and it does not cover MYOB’s enterprise product, Acumatica. All prices are the vendors’ standard Australian prices as at 18 September 2026, in AUD including GST, after introductory discounts end.
What do Xero and MYOB payroll have in common?
More than the marketing suggests. On the compliance layer the two products are close to interchangeable, which is why the choice usually comes down to cost structure and the add-ons a business needs around payroll.
| Payroll obligation | Xero | MYOB Business |
|---|---|---|
| Single Touch Payroll (Phase 2) reporting to the ATO each pay run | Yes | Yes |
| PAYG withholding, leave accruals and super guarantee calculated automatically | Yes | Yes |
| Super paid through SuperStream from inside the product | Auto super, included in every plan, via the SuperChoice clearing house | Pay Super, included in payroll subscriptions |
| Payday super (contribution received by the fund within 7 business days of payday) | Supported; Xero states auto super typically reaches funds within 4 business days | Supported; MYOB describes it as switching on the Pay Super setting |
| Employee app for payslips, leave requests and timesheets | Xero Me | MYOB Team (also onboarding and clock-on) |
| Rosters built in | No (Planday, a Xero product, is a separate subscription) | Yes on Pro and AccountRight Plus |
| Automatic modern award interpretation | No | No |
The last row is the one that surprises people. Both products let a business set up pay rates, loadings and allowances that mirror an award, and both apply them correctly once set up. Neither reads a roster and works out that a Sunday shift after 7pm attracts a particular penalty under, say, the Hospitality Industry (General) Award (MA000009). That interpretation step is manual, or it is done by a third-party rostering and time product that feeds the pay run.
Xero vs MYOB payroll cost: what does each charge per employee?
The two vendors price payroll in opposite ways, and that shapes the answer more than any feature does.
Xero bundles payroll into its accounting plans with a cap on the number of people paid. The entry Ignite plan (for the self-employed) includes payroll for one person paid monthly. Grow at $78 a month includes payroll for 2 people, Comprehensive at $107 for 5, and Ultimate 10 at $143 for 10, with Ultimate tiers up to 100 people. Xero’s terms say additional charges may apply when a business pays more people than the plan includes; the per-person rate is not published on the pricing page. Auto super is included at no extra cost on every plan.
MYOB charges a base subscription plus $3 a month per employee paid on its cloud plans. Lite ($315 a year on the annual plan) allows payroll for up to 2 employees. Pro at $70 a month allows unlimited employees at $3 each. AccountRight Plus at $165 a month includes unlimited payroll with no per-employee charge. There is also a standalone Payroll Only plan at $15 a month for up to 4 employees, for a business that keeps its accounting elsewhere.
| People paid | Xero (lowest plan that fits) | MYOB Business (lowest plan that fits) |
|---|---|---|
| 2 | Grow, $78 a month | Lite, about $32 a month ($315 a year plus $6 employee fees), or Pro at $76 |
| 5 | Comprehensive, $107 a month | Pro, $85 a month ($70 plus $15) |
| 10 | Ultimate 10, $143 a month | Pro, $100 a month ($70 plus $30) |
| 32 or more | Ultimate 50, price on Xero’s site | AccountRight Plus, $165 flat, is cheaper than Pro from 32 employees |
Three things sit behind those numbers. The Xero plan that fits a headcount also carries features unrelated to payroll (cash flow forecasting, multi-currency, project tracking), so a business buying Ultimate 10 for its payroll cap is paying for tools it may not use. MYOB’s per-employee fee counts anyone paid in the month, including a casual who worked one shift. And both vendors run steep introductory discounts (Xero 90% off for 3 months, MYOB 70% off for 6 months at the time of writing), which are worth ignoring when comparing the ongoing cost.
On list prices, MYOB Pro is cheaper than the matching Xero plan at 5 and 10 employees. Xero is cheaper at 2 employees only against MYOB Pro, not against Lite. From 32 employees MYOB’s flat-fee AccountRight Plus undercuts its own Pro plan, and it is the only option in either range with no per-head payroll charge.
How do Xero and MYOB handle payday super?
Since 1 July 2026 super guarantee contributions have had to be received by the employee’s fund within 7 business days of the day qualifying earnings are paid, and the ATO’s Small Business Superannuation Clearing House has closed. That puts the clearing house inside the payroll product on the critical path, because the clock counts settlement, not submission.
Xero pays super through auto super, which is included on every plan and routes contributions through the SuperChoice clearing house. Xero’s payday super guidance says contributions are typically paid to funds within 4 business days of authorisation, that batches approved after the 4pm AEST banking cut-off are debited the next business day, and that a batch taking longer than 7 business days should be raised with Xero support. Xero has also added a bulk review tool for qualifying earnings settings, which matters because super is now calculated on qualifying earnings rather than ordinary time earnings.
MYOB pays super through Pay Super, included in its payroll subscriptions, and its guidance for payday super is to switch the Pay Super setting on so that contributions go out as part of each pay run. MYOB’s published guide states the same 1 July 2026 start and 7 business day rule.
The practical difference is small: both products can meet the deadline when super is authorised on payday. The risk in both is an authoriser who approves batches late, or a fund rejecting a contribution because member details are wrong. From 1 July 2026 funds must return unallocated contributions within 3 business days, so a rejected payment comes back inside the window, but only if someone is watching for it. The mechanics of the deadline and the new super guarantee charge are covered in our payday super guide.
Does Xero or MYOB interpret modern awards?
No. This is the single most common misunderstanding in Australian small business payroll, and it applies equally to both products.
In Xero, a business builds pay items and pay templates that reflect the award’s rates, loadings and allowances, then applies them to each employee. Xero’s own guidance on award compliance points users to the Fair Work Ombudsman or a payroll specialist for their specific award obligations. Rostering is not part of Xero Payroll; Planday, which Xero owns, is a separate subscription that handles rosters and time capture and can pass award-coded hours into the pay run.
In MYOB Business, the Pro and AccountRight Plus plans include rosters and timesheets, and the MYOB Team app lets staff clock on and submit hours that flow into the pay run. That is a genuine advantage for a business with shift workers. It is still not award interpretation: the rates and penalty rules attached to those hours are configured by the business, and MYOB’s own marketplace lists third-party award interpreters for that job.
For a business under an award with penalty rates, split shifts or overtime thresholds, such as hospitality, retail, cleaning or the SCHADS Award used by NDIS and aged care providers, the realistic setup with either product is a rostering and award engine (Deputy, Tanda, RosterElf and similar integrate with both) feeding the payroll, or a dedicated HR and payroll platform in place of the accounting software’s payroll module. Our hospitality payroll guide works through what that looks like for a venue.
Modern award rates change each 1 July after the Fair Work Commission’s annual wage review. Neither Xero nor MYOB updates a business’s pay templates automatically. Someone has to compare each pay item against the new award rate and adjust it before the first July pay run.
Which is easier for staff and for the person running payroll?
Both vendors have moved the routine admin onto the employee’s phone. Xero Me gives staff their payslips, leave balances, leave requests and timesheets. MYOB Team does the same and adds new-starter onboarding (bank, tax file and super details submitted by the employee) and clock-on from the app, which ties into the built-in rosters on Pro and Plus.
For the person running the pay run, Xero’s workflow is generally regarded as the cleaner of the two and its app marketplace is much larger, which matters when payroll has to connect to a rostering, HR or industry system. MYOB’s strength is breadth inside one product: inventory, job costing and time billing sit alongside payroll on AccountRight Plus, where a Xero business would add separate subscriptions. Xero is fully cloud based and requires multi-factor authentication to log in; MYOB’s Lite and Pro are browser based, while AccountRight Plus still involves Windows desktop software with the company file stored online.
Which suits which business?
| Situation | Usually the better fit | Why |
|---|---|---|
| Service business, salaried or simple hourly staff, up to about 10 people | Xero | Simplest workflow, auto super included, largest app ecosystem, most accountants and bookkeepers work in it daily |
| Trade, wholesale or manufacturing business that also needs inventory or job costing | MYOB | Those functions are built into AccountRight Plus rather than bought as add-ons |
| Shift-based team that needs rosters and timesheets without another subscription | MYOB Pro or Plus | Rosters, timesheets and clock-on are included; Xero needs Planday or a third party |
| Growing past 30 employees on standard pay arrangements | MYOB AccountRight Plus | Flat $165 a month with no per-employee payroll charge |
| Award-heavy workforce: hospitality, retail, cleaning, SCHADS | Either, with an award engine in front, or a dedicated payroll platform | Neither product interprets awards; the add-on does the interpretation and the accounting software does the pay run |
| Only needs payroll, accounting is handled elsewhere | MYOB Payroll Only | $15 a month for up to 4 employees; Xero has no payroll-only plan |
Switching mid-year is possible in both directions. Xero provides import templates for employee records and opening balances. MYOB offers a migration partner and states it covers the cost of migrating transactions from the current and previous financial year from Xero, Reckon or QuickBooks. The cleanest changeover point is still 1 July, when year-to-date STP figures reset.
What does not change whichever product is chosen?
Whichever way the Xero vs MYOB decision goes, the software calculates and reports. It does not decide which award applies, whether a worker is an employee or a contractor, what counts as qualifying earnings for a salary-sacrifice arrangement, or whether the super batch was authorised on payday. Those are process questions, and they are where most payroll errors originate in both products.
That is the reason a growing share of Australian businesses hand the pay run itself, along with the super authorisation, award rate checks and STP finalisation, to a dedicated bookkeeper rather than change software. FreeMyCloud has provided Xero bookkeeping and MYOB bookkeeping to Australian businesses since 2010, running payroll in whichever product the business already uses, under the direction of its registered tax or BAS agent.
Payroll run in your Xero or MYOB, every pay cycle
FreeMyCloud places university-qualified graduate accountants based in the Philippines with Australian businesses, from individual operators to ASX-listed companies. They are able to work with Xero, MYOB, QuickBooks, Reckon, or your own industry software, and typically cost 50 to 70% less than a local equivalent.
Or call 1300 66 88 14, or try the savings calculator. No lock-in contracts.
Frequently asked questions
Is Xero or MYOB cheaper for payroll in Australia?
Xero vs MYOB on cost depends on headcount. At list prices as at 18 September 2026, MYOB Pro ($70 a month plus $3 per employee) is cheaper than the Xero plan with the matching payroll cap at 5 and 10 employees ($107 and $143). At 2 employees MYOB Lite is cheapest. From 32 employees MYOB’s AccountRight Plus at a flat $165 a month is the lowest ongoing cost because it has no per-employee payroll fee.
Does Xero payroll interpret modern awards?
No. Xero lets a business set up pay items, rates, loadings and allowances that reflect an award and apply them to employees, but it does not read hours worked and decide which penalty or overtime rate applies. That step is manual, or handled by a rostering and award product such as Planday, Deputy or Tanda that feeds interpreted hours into the pay run.
Does MYOB interpret modern awards?
No. MYOB Business Pro and AccountRight Plus include rosters, timesheets and clock-on through the MYOB Team app, which is more than Xero includes, but the award rules attached to those hours are configured by the business. MYOB’s own marketplace lists third-party award interpreters, and businesses under complex awards generally pair MYOB with one of them.
Are Xero and MYOB both ready for payday super?
Yes. Both pay super through a built-in SuperStream clearing house: Xero’s auto super (included on every plan) and MYOB’s Pay Super (included in payroll subscriptions). Xero states contributions typically reach funds within 4 business days of authorisation, inside the 7 business day rule that has applied since 1 July 2026. In both products the deadline is met only if the batch is authorised on payday.
Can a business switch from Xero to MYOB or MYOB to Xero mid-year?
Yes. Xero provides import templates for employee records and year-to-date balances. MYOB offers a migration partner and states it covers the cost of migrating transactions from the current and previous financial year from Xero, Reckon or QuickBooks. Switching at 1 July is simplest because Single Touch Payroll year-to-date figures start again from zero.
How many employees can Xero payroll handle?
Xero’s plans include payroll for 1 person (Ignite, monthly pay only), 2 (Grow), 5 (Comprehensive) and 10 (Ultimate 10), with Ultimate tiers for 20, 50 and 100 people. Paying more people than the plan includes can attract additional charges under Xero’s terms. MYOB Pro has no employee cap and charges $3 a month per employee paid; AccountRight Plus includes unlimited payroll.
This article is general information about Australian bookkeeping and reporting obligations, current as at 18 September 2026. It is not tax, financial or legal advice. FreeMyCloud is not a registered tax agent and does not prepare or lodge tax returns. Prices are the vendors’ published standard prices on that date and change without notice. Confirm your own position with your registered tax or BAS agent.
