Our Top Picks at a Glance
| Maxotel Hosted PBX | On-Premise IP PBX (e.g. FreePBX) | Microsoft Teams Phone | Google Voice for Business | |
|---|---|---|---|---|
| Best For | Most SMBs (1-30 seats) | IT-capable businesses, 15+ seats | Existing Microsoft 365 users | Very small teams, cost-sensitive |
| Monthly Cost (est.) | From ~$25/seat/month | Hardware cost + SIP trunk | Add-on to M365 plan | From ~$10 USD/user/month |
| Standout Feature | Local AU support, no lock-in | Full control, no monthly fees | Unified comms, no extra hardware needed | Simple setup, Google Workspace integration |
What Is a VoIP Phone System?
A VoIP (Voice over Internet Protocol) phone system routes calls over your internet connection rather than traditional copper telephone lines. For Australian businesses, this shift has become increasingly urgent: the NBN rollout has replaced much of the copper PSTN network, and Telstra has been progressively shutting down legacy copper services since 2022. Most businesses replacing an ageing phone system today are moving to VoIP by necessity as much as choice.A hosted VoIP phone system (also called a hosted PBX or cloud PBX) means the call switching hardware and software runs in a data centre, not in your office. You pay a monthly per-seat fee, plug in SIP-compatible desk phones or use a software phone (softphone) on your computer or mobile, and the provider handles the maintenance. For most Australian SMBs with one to thirty seats, this is the most practical option.Hosted PBX vs On-Premise PBX: Which Is Right for You?
The core decision for most businesses is whether to use a hosted (cloud) PBX service or run their own phone system hardware on-site. We cover this in detail in our hosted vs on-premise PBX comparison, but the short version is: hosted PBX suits most businesses under 30 seats, while on-premise becomes worth considering once you have consistent IT support capacity and 15 or more concurrent call paths to justify the capital cost.NBN Compatibility: What You Need to Know
Australian VoIP quality is more dependent on your NBN connection type than on your VoIP provider. FTTP (Fibre to the Premises) and FTTC (Fibre to the Curb) connections deliver consistent low-latency performance ideal for VoIP. FTTN (Fibre to the Node) connections are more variable and can introduce quality issues during peak hours depending on the distance from the node and the quality of the copper run.
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If your business is on an FTTN NBN connection and you experience call quality issues, the root cause is almost always the last-mile copper run rather than your VoIP provider. Check our NBN VoIP setup guide for diagnostic steps before switching providers.
What to Look For in a Business VoIP System
When evaluating VoIP phone systems for Australian businesses, we focus on these criteria:| Australian number support | Number porting | Call rates (AU-specific) | Contract terms | Support hours | NBN compatibility | Hardware provisioning | |
|---|---|---|---|---|---|---|---|
| Why It Matters | Can you keep your existing numbers? Does the provider support 1300/1800 inbound numbers? | Will they port numbers from Telstra, Optus, and other Australian carriers? | Local, national, and mobile call rates to Australian numbers. International rates if relevant. | Month-to-month or locked in? What are the cancellation conditions? | Australian business hours support? Or 24/7? Offshore or local support team? | Has the provider tested on FTTN and FTTC connections specifically? | Will the provider pre-configure phones for you, or do you need to provision them yourself? |
Business Numbers: 1300, 1800, and Geographic Numbers
Most Australian businesses will want to keep or obtain specific inbound numbers. The main options are geographic numbers (02, 03, 07, 08 prefix numbers tied to a state), 1300 numbers (national numbers charged at local rate to callers), and 1800 numbers (toll-free to callers). We cover 1300 numbers in detail in our 1300 number guide. Most hosted PBX providers can supply all three types, but check whether they support number porting from your current carrier before committing.How We Tested
How much does a VoIP phone system cost for an Australian small business?
Hosted VoIP phone systems for Australian SMBs typically cost between $20 and $50 per seat per month depending on features and call inclusions. Some providers charge additional fees for 1300 numbers, number porting, or international calling. Hardware (SIP phones) is an additional one-off cost of roughly $80 to $300 per handset depending on model. On-premise systems have a higher upfront hardware cost but lower ongoing fees.
Can I keep my existing phone number when switching to VoIP?
Yes, in most cases. Number porting allows you to transfer your existing business numbers to a new VoIP provider. Australian geographic numbers (02, 03, 07, 08) and 1300/1800 numbers can all be ported. The porting process takes between 5 and 20 business days depending on the current carrier and number type. Most hosted PBX providers handle the porting process on your behalf.
Does VoIP work on NBN?
Yes, VoIP works on all NBN connection types. The best performance comes from FTTP (Fibre to the Premises) and FTTC (Fibre to the Curb) connections. FTTN (Fibre to the Node) connections can work well but are more variable due to the copper run between the node and your premises. For most businesses, a standard NBN25 or NBN50 plan provides more than enough bandwidth for VoIP even with multiple simultaneous calls.
What happens to my phone system during a power or internet outage?
With a hosted VoIP system, an internet or power outage at your premises means your desk phones stop working. Most providers offer failover options: calls can be automatically diverted to a mobile number or voicemail during an outage. Some providers offer a SIM-based backup option for critical lines. On-premise PBX systems face the same internet dependency unless they include a PSTN fallback line.
Do I need special phones for VoIP?
For a hosted PBX system, you need SIP-compatible desk phones or a softphone application on a computer or mobile device. SIP phones from brands like Yealink, Grandstream, and Polycom are widely used in Australia and are pre-configured by most hosted PBX providers. You do not need special hardware if you use a softphone, which runs as an app on your existing device.
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