How to Lower Your Phone and Internet Bill in Australia
Paying too much for phone and internet? How to cut both bills fast, from switching to an MVNO to right-sizing your NBN plan. Australian guide for 2025-26.
By Timothy Hirou GaschereauPublished 10 min read
Most Australians overpay for mobile and internet for one simple reason: they have never switched. A household on a big-network mobile plan and a creeping NBN bill can easily be spending $1,700-plus a year on connectivity, and a decent slice of that is pure inertia.
Here is what you should actually be paying, how mobile and NBN plans really work, and a practical playbook to cut both bills by $500 to $1,000 a year. General information only, and plans change constantly, so always check a comparison site before switching.
🎯 The essential: The biggest single saving is moving your mobile to an MVNO (a reseller on the same Telstra, Optus or Vodafone towers) for $15 to $35 a month instead of $55-plus. Then right-size your data (most people use 5 to 15 GB), buy handsets outright instead of on a plan, and put NBN 50 back on the table (it suits most homes). Compare NBN every 12 months because intro discounts expire, downgrade the speed tier if you do not need it, and haggle with retention. Use WhistleOut or Finder to compare.
What Australians actually pay
Before cutting a bill, it helps to know whether yours is high:
- Mobile: a SIM-only plan on Telstra, Optus or Vodafone/TPG typically runs $40 to $65 a month. Add handset repayments and it climbs to $80 to $120+.
- Internet (NBN): most households pay $65 to $90 a month depending on speed tier and provider. Promo pricing looks cheaper for six months, then quietly creeps up.
A home paying $65 for mobile and $80 for NBN spends $1,740 a year. Trim both and $500 to $1,000 a year is realistic, which is a very good hourly rate for the time it takes.
How mobile plans work now
SIM-only vs on a phone plan. A phone plan with handset repayments bundles your device into the monthly bill, usually at a premium, plus a higher plan rate. If you already own a working phone, a SIM-only plan (you supply the phone, pay only for calls, texts and data) is almost always cheaper.
Prepaid vs postpaid. Prepaid is paid upfront with no lock-in and no bill shock. Postpaid is billed monthly, with more flexibility on add-ons but sometimes a contract. Month-to-month postpaid plans are common and worth seeking out.
The big three vs MVNOs. Australia has three actual mobile networks: Telstra (best regional coverage, at a premium), Optus (strong metro, sharper pricing) and Vodafone/TPG (good metro, often cheapest of the three). An MVNO resells capacity on one of those networks at a lower price because its overheads are small. Some examples:
- Telstra network: Boost Mobile, Belong, Aldi Mobile
- Optus network: Amaysim, Woolworths Mobile, Circles.Life
- Vodafone network: Kogan Mobile
In metro and suburban areas an MVNO gives you essentially the same day-to-day coverage as going direct, for much less. The rural exception: Telstra's own network reaches further than most MVNOs, even some that resell Telstra, so check the coverage map if you spend time outside the cities.
How NBN plans work
Speed tiers. NBN 25 suits one or two light users. NBN 50 is the most popular tier and handles HD streaming, video calls and browsing for most homes of one to four people. NBN 100 is worth it for four-plus heavy simultaneous users, big work-from-home uploads, or 4K on several screens. NBN 250 and 1000 are overkill for almost everyone.
Evening speeds matter more than the headline. Providers must publish a "typical evening speed" (7pm to 11pm, the busy window). An NBN 100 plan at 60 Mbps evening speed is a worse deal than an NBN 50 plan at 47 Mbps. Check that number, not just the plan name.
The retailer matters. The wholesale NBN is the same for everyone; what differs is how much capacity your retailer buys and how good their support is. The ACCC's NBN performance report shows real-world speeds by provider. And no-lock-in month-to-month plans are the default, so there is rarely a reason to sign a 12 or 24-month NBN contract.
Your playbook to cut both bills
- Switch your mobile to an MVNO. The biggest saving, about 20 minutes' work. Check which network your SIM uses, find an MVNO on the same one, and port your number. Metro coverage is essentially identical.
- Right-size your data. Check your actual usage (iOS: Settings then Mobile Data; Android: Settings then Network then Data usage). Most people use 5 to 15 GB. Paying for 100 GB and using 8 is money gone.
- Buy handsets outright. Repayments bundled into a plan almost always cost more over 24 months. Certified refurbished phones are a solid middle ground. When a device plan ends, do not auto-roll into a new one.
- Compare NBN every 12 months. A $69 plan can quietly become $89 after six months. Set an 11-month reminder, spend 15 minutes on WhistleOut or Finder, and switch if your provider will not match.
- Right-size your NBN speed. If you are on NBN 100 without four-plus heavy users, dropping to NBN 50 can save $15 to $25 a month with no noticeable difference. Usually just a call, no technician.
- Haggle. Tell your provider you are thinking of leaving and ask what they can do. Retention offers are often better than new-customer deals. Follow through if they say no.
- Bundle carefully. Sometimes a mobile + NBN bundle is genuinely cheaper; sometimes it just locks you into two mediocre plans. Run the numbers, do not bundle purely for convenience.
Plans compared
Mobile: big network vs MVNO (typical SIM-only, 2025-26)
| Plan type | Example | Network | Typical cost | Data |
|---|---|---|---|---|
| Big network | Telstra | Telstra | ~$65/mo | 40-60 GB |
| Big network | Optus | Optus | ~$55/mo | 40-60 GB |
| MVNO budget | Boost / Aldi | Telstra | ~$15-$30/mo | 10-30 GB |
| MVNO budget | Amaysim | Optus | ~$15-$25/mo | 15-25 GB |
| MVNO mid | Kogan | Vodafone | ~$15-$30/mo | 15-40 GB |
NBN speed tiers: what you get and who it suits
| Speed tier | Typical cost | Evening speed | Best for |
|---|---|---|---|
| NBN 25 | $50-$65/mo | 20-23 Mbps | 1-2 light users |
| NBN 50 | $60-$79/mo | 42-48 Mbps | Most homes, 1-4 people |
| NBN 100 | $75-$99/mo | 85-95 Mbps | 4+ heavy users, big uploads, multi-screen 4K |
| NBN 250 | $90-$110/mo | 200+ Mbps | Power users, heavy home offices |
| NBN 1000 | $100-$130/mo | 700+ Mbps | Overkill for almost all homes |
❓ Frequently asked questions
What is the average phone bill in Australia?
+
On a postpaid SIM-only plan with one of the big three networks, most people pay $40 to $65 a month. On an MVNO, the same coverage can cost $15 to $35. If your plan bundles in handset repayments, the total is higher.
What is the average internet (NBN) bill in Australia?
+
Most households pay $65 to $90 a month depending on speed tier and provider. Introductory discounts can lower it for the first six months, but prices often creep up once the promo period ends.
Are MVNOs as good as Telstra or Optus?
+
In metro and suburban areas, yes for most people. MVNOs resell capacity on the big networks, so the towers are the same. The differences show up in customer service, roaming options and regional coverage, so check the coverage map if you spend time in rural or remote areas.
What NBN speed do I actually need?
+
NBN 50 suits most households of one to four people doing normal streaming, video calls and browsing. Go NBN 100 only if you have four-plus heavy simultaneous users, upload large files from home, or stream 4K on several screens at once. NBN 25 is fine for one or two very light users.
Will switching NBN providers disconnect me?
+
Usually no. The transfer typically takes one to three business days and your connection stays active during it. There may be a brief interruption when the switch completes, usually minutes rather than hours.
Is it worth haggling with my current provider?
+
Yes, especially for NBN. Retention teams often have unpublished discounts that are not on the website. Call, say you are thinking of leaving, and ask what they can do. Even $10 a month is $120 a year. Just be ready to actually switch if they say no.
Keep reading
📚 Recommended reading
The Barefoot Investor
Scott Pape
The Barefoot Investor
Scott Pape
Australia's best-selling money book ever. A simple system for accounts, budgeting, debt and a real emergency fund in one.
Making Money Made Simple
Noel Whittaker
Making Money Made Simple
Noel Whittaker
Australia's classic, comprehensive money guide covering tax, super and investing, updated for today.
Money School
Lacey Filipich
Money School
Lacey Filipich
Lacey Filipich shows how to buy back your time, not just budget your dollars, with a clear path from saving to financial independence. It is refreshingly Australian and genuinely doable, even if maths was never your thing.
Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only, not financial advice. Plans, prices and provider details change constantly. Always check current offers on WhistleOut, Finder or directly with providers before switching.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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