How Much Does a Business Phone System Cost in Australia? (2026)

Cloud phone system pricing for Australian small businesses commonly falls between $20 and $60 per month in total, though the right number for your business depends on user count, features and call inclusions. A sole trader or two-person business may find low-cost plans, but the total depends on per-user fees, call usage, phone-number charges and add-ons. A 10-person office is commonly in the $200-400 per month range depending on features and hardware. This guide breaks down exactly what drives those numbers so you can budget accurately before you call anyone.

All prices are in AUD and include GST unless noted. For a more detailed breakdown, see our full pricing breakdown or use our cost calculator to get a number for your specific situation.

The Three Price Tiers

For budgeting, this guide groups offers into three illustrative bands, but Australian providers do not use a standard three-tier structure and feature bundles vary by provider. Think of them like phone plan tiers: basic covers the essentials, standard adds the features most offices actually use, and advanced is for businesses that need detailed reporting or system integrations. Figures below are for standard plans with Australian calls included, as at August 2026.

Many small Australian businesses find the Standard tier covers what they need, though the right tier depends on your specific feature and support requirements. Basic is genuinely sufficient for sole traders and very small teams. Advanced-tier features may be unnecessary for a business that will not use them; compare each provider's actual feature bundle and price difference.

What's Included vs What Costs Extra

Plan inclusions vary: a geographic number, call allowance, voicemail or app access may be included in the base plan fee or charged separately. Check the provider's Critical Information Summary and rate card rather than assuming a standard inclusion set.

Things that typically cost extra on top of the plan fee:

• 1300 numbers, usually $10-20/month for the number itself, plus per-minute inbound call charges (callers pay local rate, you pay the rest)
• 1800 numbers, similar setup, but you pay all inbound call costs
• Call recording may be included, metered by recorded minutes or storage, or charged as an add-on; check whether pricing is per account, number or user.Extra numbers, if you want separate numbers for different departments or staff
• International calling, usually not included; charged per minute unless you add an international bundle

Depending on the plan, desk phones may be purchased separately, rented, or included in the monthly charge under a minimum-term contract. See the hardware section below. If you want to understand the hidden costs of VoIP in more detail, that guide covers per-minute traps and contract exit fees.

Hardware: Do You Need a Desk Phone?

The short answer: no, you do not need a desk phone to run a cloud phone system. Many hosted VoIP providers offer app-based plans that can use an existing computer or smartphone without purchasing a desk phone; confirm app availability, licensing and setup requirements for the selected plan.

If you do want physical desk phones, because you prefer a handset, reception staff need a dedicated line, or your team finds apps unreliable, expect to pay:

• Entry-level desk phone: $80-150 upfront per phone (basic Yealink or Grandstream models)
• Mid-range desk phone: $150-250 upfront (colour screen, more line keys, better audio)
• Rental instead of buying: ~$5-15/month per phone depending on the model and provider

A practical example: a 3-person office with no desk phones, all using the mobile app on Standard plans at $25/user/month, pays $75/month total and zero upfront hardware cost. That is the cheapest workable setup for a small team that does not need a reception phone.

Setup Costs: What to Expect

Cloud provider setup fees commonly range from $0-200 and vary by provider -- check current pricing before you commit. Many charge nothing if you self-configure through their online portal, with self-configuration time varying by provider and setup complexity. Provider-assisted setup (someone configures it for you) commonly costs more and can take longer, particularly for multi-site or complex routing setups -- get a specific quote.

Number porting, transferring your existing phone number to the new provider so customers can still reach you on the same number, is usually free or a one-off fee of about $25-50 for a simple local-number port, more for complex, grouped or 1300/1800 ports. Individual local-number ports generally take 8-15 business days, while more complex local ports can take up to 30 business days; the gaining provider should confirm the expected timeframe. Keep the old service active until the port completes, but the number may be unreachable during the cutover window; ask the gaining provider about continuity arrangements. This is not something to fear; it is a standard process providers handle every day.

For a brand new number rather than a port, setup time and pricing vary by provider, plan and number availability; some plans include a local number, while others charge separately.

What a Typical 5-Person Office Pays

Here is a concrete example you can use as a benchmark:

• 5 users on Standard plan at $30/user/month = $150/month ongoing
• 2 desk phones at $150 each = $300 one-off (3 staff use the app on their mobile)
• 1 existing number ported = free
• No call recording, no 1300 number

Total: $150/month ongoing + $300 one-off hardware. That is the estimated cost for this hypothetical plan. Whether line rental or local and national call charges apply, and whether a minimum contract term is required, varies by provider and plan.

For a full 3-year cost model including hardware depreciation and plan escalations, see our guide to 3-year total cost of ownership.

The Hidden Costs to Watch For

A few cost traps that catch businesses off guard:

• Per-minute call rates on cheaper plans, some entry-level plans charge per minute for outbound calls instead of offering unlimited. If your team makes a lot of calls, this can blow out your bill. Always check whether "unlimited" calls are included or capped.
• Inbound 1300 costs, 1300 services commonly have monthly and inbound-usage charges. Per-minute rates vary by provider, call origin and termination destination and can exceed $0.15/minute, so check the inbound-service rate card. High call volumes can add up quickly.
• Contract exit fees, some providers lock you in for 24 months with early termination charges calculated from the remaining monthly commitment, which can exceed $500 for a multi-user system. Others are month-to-month. Always check the Critical Information Summary and contract formula before signing.
• Hardware rental that costs more than buying, $12/month per phone rental sounds cheap, but over 24 months you have paid $288 for a phone that costs $150 to buy outright. Rental only makes sense if the provider replaces faulty hardware at no cost.

Our full guide on hidden costs of VoIP covers each of these in more detail with real examples.

What Most Businesses Get Wrong

Mistake 1: Comparing monthly plan prices without factoring in call rates. A plan that advertises $15/user/month might charge $0.12/minute for outbound calls. In this example, the $30 plan becomes cheaper after more than 125 charged outbound minutes per user per month; the actual break-even point depends on rates, call types and billing increments. Always model your actual call volume before comparing plans on price alone.

Mistake 2: Over-buying features you will never use. Call recording, analytics dashboards, CRM integrations, and multi-site routing are genuinely useful for the right businesses. But if you are a 4-person office that answers phones between 9am and 5pm, the Standard plan covers everything you need. Paying for a higher tier can waste money if its extra features are not needed; compare the actual provider-specific price difference.

Mistake 3: Assuming cheap means bad quality. Plan price alone is not a reliable measure of call quality. VoIP quality is affected by latency, jitter, packet loss, codecs, endpoints, provider routing and network congestion.

Your Next Steps

Here is a simple process to get from reading this to actually set up:

• Count how many people need a phone line (not how many staff total, just who actively makes and receives calls)
• Decide whether you need desk phones or whether the mobile app is enough for your team
• Check whether you want to keep your existing number (porting) or get a new one
• Use our VoIP cost calculator to build your actual monthly cost estimate
• If you want a shortlist of providers that fit your setup, get a free recommendation, no obligation

For a deeper comparison of specific providers at each price tier, including what is and is not included in each plan, see our guide to the best phone system for small business in Australia.

Once you have a budget range in mind, the next step is comparing specific options. Our guide to the best phone system for small business in Australia breaks down the top hosted providers in detail, including per-user pricing, what is included in the base plan, and which ones offer the best value at different team sizes.