ATO late lodgement penalty: up to $364 per 28 days, capped at $1,820 per document · interest 11.43% p.a. compounding daily · See how to remit them →
The decision tree
| Your shape | Tier | The candidates |
|---|---|---|
| Sole trader, no GST, no staff | Minimal: a bank feed plus set-aside discipline. A structured spreadsheet or a free tool genuinely suffices | Free or low-cost options, plus the ATO app for receipts |
| Sole trader or micro business, GST-registered | Entry paid tier. BAS-capable software pays for itself in coding accuracy alone | Xero entry plans, QuickBooks lower tiers, or an all-in-one model for the expense-light |
| Employer of any size | Payroll-capable tier, non-negotiable. Single Touch Payroll per pay run and super streaming rule out the minimal options entirely | Xero with payroll, MYOB Business, QuickBooks with payroll |
| Inventory, job costing or multiple entities | Full tier | MYOB's traditional strength, or Xero plus ecosystem apps, depending on shape |
Total cost of ownership: the honest comparison
Software pricing is the visible 20%, somewhere between nothing and about $100 a month. The invisible 80% is the accountant interface. Australian accountants overwhelmingly work natively in Xero and MYOB, so a file in the ecosystem your accountant knows is processed in hours, while a file in an exotic or free tool is exported, converted and re-checked at hourly rates that erase five years of subscription savings.
And a file that is behind is not a software problem at all. Months of unreconciled feed and unlodged BAS get fixed by reconstruction and lodgment, after which almost any mainstream tool maintains it.
Frequently asked questions
What is the best accounting software for a small business in Australia?
Do I need accounting software at all?
Is the cheapest option worth it?
Xero, MYOB or QuickBooks?
Should I switch software to save money?
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.