Cheap Business Phone Service Australia: What to Look For (and What to Avoid)

Australian providers currently advertise app-based VoIP around $5 per month, while PAYG business VoIP pricing varies because providers may price the plan, connection, number and usage separately. Those headline prices can be real, but the total may be higher once applicable usage, number and setup charges are included. This guide covers the full picture: what each price tier includes, where the hidden costs appear, and how to calculate your real monthly spend before you sign anything. It is written for Australian businesses on NBN connections, covering the pricing structures you will actually encounter in the local market.

What Do the Cheapest Business Phone Plans Actually Include?

There are two distinct categories at the low end of the Australian business phone market. Understanding the difference matters before you choose.

Virtual Number with Smartphone App (from ~$5/month incl GST)

A virtual number service gives you an Australian phone number that rings an app on your smartphone, no physical desk phone involved. You answer calls on your mobile, and calls come in through the app rather than your mobile number. At this price point, you typically get:

• One local or 1300 number
• A basic softphone app (iOS and Android)
• Voicemail, sometimes with email delivery, sometimes not
• No included call minutes, or a very small allowance
• No ability to handle two calls simultaneously on the same number

This is the right tool for a sole trader or micro-business that receives a handful of calls per week and simply wants a dedicated business number that does not expose their personal mobile. Services at this price can be app-based VoIP or forwarding services; the exact functionality and concurrent-call limit depend on the provider.

Pay-As-You-Go VoIP Line (from ~$8/month incl GST)

A PAYG VoIP line is a step up. This is a real internet-based phone line (the technology is called Voice over IP, or VoIP) that can connect to a physical desk phone or a softphone app on your computer. At the entry level, you get:

• One VoIP extension; SIP lines or trunks are related services but are not interchangeable terms for an extension.
• No included call minutes, you pay per call
• Voicemail to email, usually
• Desk-phone compatibility and provisioning depend on the provider and exact handset model, so check compatibility before buying or reusing a phone.
• Ability to add more lines as your business grows

The $8/month figure covers the line rental only. Actual call costs are on top, and this is where most businesses get surprised.

The Hidden Costs That Blow Out a Cheap Plan

Here is where those extra costs come from.

Calls to Australian Mobile Numbers

This is the single biggest cost surprise for Australian businesses. PAYG rates and billing units vary substantially: providers may charge fixed-line calls per call or per minute, while mobile calls commonly have a separate rate. Check the provider’s current rate card.If a large share of your outbound calling goes to mobiles, mobile-call charges can materially affect the bill. A 10-minute call to a supplier's mobile at 20 cents per minute costs $2. The total cost of 50 outbound mobile calls depends on their duration, the provider’s rate and its billing increments or minimum charges. Check what your actual mobile call rate is before committing to any plan.

1300 and 1800 Number Charges

If you operate a 1300 service, the business receiving the calls may pay usage charges under its provider’s plan. This is called the answered call charge, and it applies on top of your monthly number fee. ACMA classifies 1300 numbers as local-rate rather than freephone: caller charges depend on the caller’s plan, while charges to the receiving business depend on its provider and plan. Rates vary by provider but are typically 10-20 cents per minute from landlines and 20-45 cents per minute from mobiles.

If your 1300 number handles significant inbound call volume, this cost can easily exceed your line rental. Check the plan page and Critical Information Summary for recurring 1300 usage rates, included minutes and answer-point charges.

Number Porting Fees

If you are moving an existing business number to a new provider, keeping the same number your customers already know, there is usually a porting fee. Porting fees vary widely by provider and port type; simple ports may be free, while complex ports or number ranges can cost substantially more. Geographic and mobile numbers are ported by telcos under the Telecommunications Numbering Plan and industry codes registered by ACMA. Individual local-number ports are generally completed within 8 to 15 business days. ACMA says complex ports can take up to 30 business days with limited exceptions, and providers warn that some cases can take longer. For mobile numbers, 90% of ports complete within 3 hours and 99% within 2 business days. Check the receiving and losing providers’ charges upfront, because porting may be free or may attract a fee depending on the provider and port type.

See our guide to number porting in Australia for the full process and what can go wrong.

Hardware Costs

A basic VoIP desk phone costs between $80 and $200 including GST. You do not have to use one, a softphone app on your computer or mobile works fine, but many businesses prefer physical phones. This is a one-off cost, but it adds to the total cost of switching. Some providers include or subsidise a basic handset; most do not at the entry-level price point.

Setup and Activation Fees

Some providers charge a one-off setup or activation fee ranging from $0 to around $50. Others embed this in the first month's bill. Read the fine print carefully, the cheapest monthly rate sometimes comes with the highest setup cost.

For a full comparison of business phone systems across price points, not just the budget end, see Best VOIP Phone System for Small Business Australia.

How to Calculate Your Real Monthly Cost

Before comparing plans, work out your actual usage. You need to know:

1. How many outbound calls do you make per month? Roughly how many go to landlines vs. mobile numbers?
2. How many inbound calls do you receive per month? Do you have a 1300 number that callers use?
3. How many staff need phone access simultaneously? If two people must take calls simultaneously, confirm that the plan includes at least two concurrent call channels; providers do not always call or price these as two separate lines.
4. Do you need any features beyond basic calling? Call recording, IVR menus, ring groups, and voicemail-to-email all affect which plan tier makes sense.

Once you have those numbers, you can apply the real per-minute rates to your call volume and compare the total monthly cost, not just the headline plan price.

Our VoIP Cost Calculator does this automatically. You can also read through the detailed breakdown in our guide to VoIP costs in Australia and our article on hidden VoIP costs.

What Each Price Tier Gets You

The table above is a guide to typical price ranges in the Australian market as of early 2026. Specific pricing varies significantly between providers, always request a full quote that includes your expected call volume. Treat the mapping from price to features as a general pattern rather than a rule. Some Australian providers include a full cloud PBX with IVR, ring groups, queues and call recording at the bottom of this range, so a low monthly price does not reliably mean a cut-down feature set, and a higher one does not guarantee a fuller one. Compare the feature list in each quote directly rather than inferring it from the price.

What You Lose on the Cheapest Plans

The very cheapest plans save money on monthly fees but remove things that matter for most businesses. Before choosing the lowest price point, check whether the following are included:

• Multiple simultaneous calls: If your number can only handle one call at a time, a second caller gets a busy signal. For a business receiving more than a handful of calls per day, this loses customers.
• Call queuing: The ability to hold callers in a queue when all lines are busy, with hold music rather than a disconnected line.
• After-hours routing: Automatically sending calls to voicemail or a different number outside business hours. On the cheapest plans, you often have to set this up manually.
• Voicemail to email: Receiving voicemail messages as audio files to your email inbox so you do not miss them.
• Call recording availability varies: some entry-priced services include it, while others require a higher tier or usage-based add-on.Number porting: Some very cheap plans do not support porting your existing number in. You would have to start fresh with a new number, which may not be acceptable if your existing number appears on your website, signage, and marketing.

Whether these matter depends on your business. A sole trader who receives five calls a week can live without all of them. A business with multiple staff handling daily enquiries cannot.

When to Spend a Bit More

There are specific situations where the entry-level price point is not the right choice, even if it looks appealing.

• You have five or more staff who take calls. At this point, you need a cloud phone system (a phone system in the cloud) that can route calls between extensions. Entry-level plans are not designed for this, and trying to force them into this role creates ongoing problems.
• You handle more than around ten calls per day. At this volume, call quality, simultaneous line capacity, and call management features start to matter. A plan that cannot handle two simultaneous calls will cost you more in lost business than you save on the monthly fee.
• You need call recording. This is common in businesses with compliance requirements (financial services, legal, healthcare) or businesses that want to review calls for quality purposes. Availability at entry-level prices varies by provider, and call recording may be included or charged separately.
• You have a 1300 number that drives significant inbound volume. The per-minute answered call charges on a 1300 number can make your cheap plan very expensive. At higher call volumes, a plan with better 1300 inclusions often works out cheaper overall.

If any of these apply, read our guide to total cost of ownership for business phone systems before making a decision.

What Most Businesses Get Wrong

Most businesses that have a bad experience with a cheap phone plan made one of three mistakes.

Mistake 1: Comparing Plan Price Without Checking Mobile Call Rates

The headline monthly cost is only part of what you pay. If a large share of your outbound calls goes to Australian mobiles, mobile usage charges may exceed the plan fee, depending on call duration and the provider’s rate. Always ask: what is the per-minute rate for calls to Australian mobiles? Get it in writing before committing.

Mistake 2: Not Accounting for Number of Simultaneous Calls Needed

Many entry-level plans limit concurrent calls, but the meaning of a line varies; check the plan’s explicit inbound and outbound concurrency limits. If you have two staff who both need to be able to make or receive calls simultaneously, you need two lines. If you add the cost of two or three lines, the cheap plan often no longer looks cheap. Work out how many simultaneous calls your business needs to support before comparing prices.

Mistake 3: Ignoring the Cost of Switching Again if It Does Not Work

Number porting is not free and is not instant. If you switch to the cheapest plan, discover it does not meet your needs after a few months, and then switch again, you may pay porting fees more than once, you may have to manage service disruption twice, and you spend time on it that has a real cost. Choosing slightly better than the minimum from the start is almost always cheaper in the long run. See our guide to migrating to VoIP for what the switching process actually involves.

Your Next Steps

Before you sign up for any business phone plan in Australia, work through this checklist:

1. Count your monthly calls. Estimate inbound and outbound separately, and note how many go to mobile numbers vs. landlines.
2. Decide how many simultaneous calls you need to support. If two staff need phones, assume you need at least two simultaneous lines.
3. List the features you cannot operate without. Voicemail to email, after-hours routing, and call recording are common must-haves. Write them down before comparing plans.
4. Ask every provider for their mobile call rate. Do not take the plan page at face value, request a complete rate card.
5. Calculate your total monthly cost using your actual call volume. Calculate costs using each provider’s actual billing units, included allowances, connection fees, minimum charges, line or user fees, and any inbound-number charges.Factor in porting fees and hardware costs if you are switching from an existing provider.
6. Check whether the plan is month-to-month or has a minimum term. Month-to-month contracts are available in the Australian market and give you the flexibility to switch if the plan does not work out.

For a more detailed assessment of what your business needs, use our Phone System Sizing Wizard.

The cheapest phone system plan is rarely the cheapest total option once you account for mobile call rates, 1300 termination fees, and hardware costs. Our Phone Bill Translator decodes your current bill and shows exactly where the savings will, and will not, come from.

Before comparing specific providers on price, it helps to understand what the full cost picture looks like. Our guide to how much a business phone system costs in Australia covers the three price tiers, what is included at each level, and the hidden costs that often catch businesses out when they choose on headline price alone.

What is the cheapest business phone service available in Australia?

App-based VoIP is currently advertised around $5 per month, while basic PAYG VoIP pricing varies because providers may charge separately for the plan, connection, number and usage. These headline prices may exclude usage charges, which can be billed per call or per minute depending on the destination and plan. The actual total depends heavily on your call volume and whether you call Australian mobile numbers frequently.

Can I keep my existing business phone number if I switch to a cheap phone system plan?

Usually yes, but not always. Most Australian business phone companies support number porting for geographic numbers (02, 03, 07, 08 prefixes) and most mobile numbers. Some very cheap or entry-level plans do not support porting, check this before signing up if keeping your number is important. Individual local-number ports are generally completed within 8 to 15 business days. ACMA says complex ports can take up to 30 business days with limited exceptions, and providers warn that some cases can take longer; for mobile numbers, 90% complete within 3 hours and 99% within 2 business days. Porting charges vary widely by provider and port type: some simple ports are free, while complex ports or number ranges may cost substantially more.

Why are calls to Australian mobile numbers so much more expensive on cheap phone system plans?

In Australia, calls to mobile numbers are routed through a different part of the network and attract higher termination charges than calls to landlines. The regulated wholesale mobile-termination rate is higher than the fixed-termination rate, but retail call prices and inclusions still depend on the provider and plan. PAYG providers use different rates and billing units for fixed-line and mobile calls, so the current rate card must be checked rather than relying on a single market range. Because most Australian businesses make the majority of their outbound calls to mobiles, this is often the biggest cost on a phone bill.

Do cheap phone system plans work on NBN?

Yes, VoIP works over the nbn and is one of the voice services the network supports. However, call quality depends on your NBN connection type and speed. FTTP (Fibre to the Premises) and FTTC (Fibre to the Curb) connections generally produce excellent call quality. FTTN (Fibre to the Node) connections can introduce jitter and packet loss that degrades call quality, particularly if your line speed is marginal. Before switching, check your NBN connection type and run a speed test. There is no universal 1 Mbps-per-call minimum; required bandwidth depends on the codec, encryption and network overhead and can be substantially lower. Our NBN VoIP setup guide covers this in detail.

Is there a minimum contract on cheap business phone plans?

Many providers in the Australian market offer month-to-month contracts with no lock-in, even at entry-level price points. Some offer discounts for annual payment. The presence of a minimum contract is not correlated with plan price, some of the cheapest plans are month-to-month, and some mid-tier plans lock you in for 12 or 24 months. Always check the minimum term before signing. Month-to-month is strongly preferred for most small businesses, especially if you are unsure whether the plan will meet your needs.

Can I use my existing analog handset (like a Panasonic or Uniden from JB Hi-Fi) with a cheap phone system plan?

Not directly. Standard analog handsets connect to a phone wall socket, not to a VoIP service. An analog handset needs a compatible analog phone interface, which may be built into the provider’s modem/router or supplied by a separate ATA. These cost around $50-$120. Alternatively, you can use a VoIP-native desk phone (these connect via an ethernet cable rather than a phone socket) or a softphone app on your computer or smartphone, which requires no extra hardware. See our guide to ATA adapters for details on using analog phones with VoIP.

What happens to my VoIP phone if the power goes out?

Unlike a traditional landline, VoIP phones depend on your internet connection, which depends on your NBN connection, which in most cases depends on mains power. Unless every required network device and phone has suitable backup power, a VoIP service delivered over the nbn will stop working during a power outage. This is an important consideration for businesses that need to remain reachable during power outages. Options include call forwarding to a mobile number (most business phone companies support this), a 4G router with battery backup, or keeping a mobile phone as a fallback. This is a known limitation of all NBN-based phone services, not just cheap plans.