Prepaid vs postpaid mobile plans in Australia is one of those decisions you’ll make in your first week here, probably while jet-lagged and confused at the airport. I went with postpaid because it sounded more “proper” and spent the next six months regretting it every time I got a bill with mysterious extra charges.
Three years and four different mobile plans later, I’ve tried both prepaid and postpaid setups across multiple carriers. I’ve dealt with bill shock, overpaid for data I never used, and eventually figured out what actually makes sense for international students in Australia.
The short answer? Most students are better off with prepaid plans, but it depends on your specific situation. Here’s everything you need to know about prepaid vs postpaid mobile plans in Australia to make the right choice without wasting money.
Understanding Prepaid Plans in Australia
Prepaid means you pay upfront for a set amount of calls, texts, and data that expires after a certain period, usually 28 days or a month. No contracts, no credit checks, no surprises. You top up when you run out, simple as that.
I switched to prepaid after my postpaid experiment failed, and honestly, it’s been liberating. I pay $25-30 at the start of each month, know exactly what I’m getting, and never worry about unexpected bills. If I run out of data early, that’s on me for watching too much YouTube on 4G.
The flexibility is perfect for students. When you’re heading home for winter break or travelling around Australia, you’re not locked into paying for a service you’re not using. Just don’t recharge that month, and you’re done. Try doing that with a 12-month postpaid contract.
Most major carriers like Optus, Telstra, and Vodafone offer prepaid options, but the real value is in smaller providers like Boost, Aldi Mobile, and Amaysim. They use the same networks but charge less because they don’t have flashy retail stores everywhere.
How Postpaid Plans Work
Postpaid is the traditional monthly plan where you use the service all month, then get billed for it. You commit to a minimum contract term, usually 12 or 24 months, and pay a fixed amount monthly regardless of whether you use all your inclusions or not.
The appeal is getting a new phone bundled into the plan. You walk out of the store with the latest iPhone, paying it off over two years as part of your monthly bill. Sounds convenient until you realise you’re paying $80-100 per month for something you could get for $30 as a student.
I lasted six months on postpaid before switching. The billing cycle never matched my actual usage patterns, I paid for way more data than I needed, and breaking the contract early meant hefty exit fees. Not ideal when you’re on a student budget.
The credit check requirement is another hassle. As an international student with zero Australian credit history, some providers wanted a hefty bond upfront anyway, which defeated the purpose of spreading costs over time.
Cost Comparison: What You’ll Actually Pay
Here’s where prepaid vs postpaid mobile plans in Australia gets interesting. On paper, postpaid plans look competitive. In reality, students almost always pay more for features they don’t need.
Prepaid plans I’ve used:
- Aldi Mobile: $25 per 28 days, 18GB data, unlimited calls/texts
- Boost Mobile: $30 per month, 40GB data on Telstra network
- Amaysim: $30 per month, 60GB data, unlimited international calls to select countries
Postpaid plans I’ve seen:
- Optus basic plan: $49 per month, 40GB data, 12-month contract minimum
- Telstra small plan: $58 per month, 40GB data, but “premium” network
- Vodafone plan: $45 per month, 40GB data, but often has bonus data promotions
Do the maths. Over a year, my current prepaid plan costs $300. A basic postpaid plan costs $540-700 annually. That’s $240-400 difference for essentially the same service, which is two weeks of groceries or a flight home.
The only time postpaid makes financial sense is if you desperately need a new phone and can’t afford to buy it outright. Even then, you’re paying interest through higher monthly fees. Better to buy a decent second-hand phone and use prepaid if money’s tight.
For more context on budgeting for phone costs, check out my guide on how much money you need per month as a student in Australia.
Data Allowances and Usage Patterns
Most students think they need unlimited data. You probably don’t. I thought I did too until I actually tracked my usage for a month and realised I was using maybe 15-20GB, and that was with daily YouTube at lunch and scrolling Instagram.
Where data actually goes:
- Streaming video (YouTube, Netflix) eats 3GB per hour on high quality
- Social media (Instagram, TikTok) uses roughly 1-2GB per day if you’re heavy user
- Music streaming is surprisingly light, maybe 100-150MB per hour
- Video calls home use about 500MB per hour
Connect to WiFi at uni, your share house, cafes, and libraries, and your mobile data usage drops dramatically. I’m on campus or at home with WiFi probably 80% of the time. Mobile data only matters when I’m commuting or out on weekends.
My current 40GB plan is overkill, honestly. I’ve never gone over 25GB in a month, even during exam periods when I’m studying at random cafes all day. The 18GB plans would probably suffice if I was more disciplined about WiFi.
If you’re unsure how much you’ll actually use, start with a smaller prepaid plan and track it for a month. My article on how much mobile data you need as a student in Australia breaks this down in more detail.
Contract Flexibility and Lock-in Periods
This is where prepaid absolutely destroys postpaid for international students. No contracts means no commitment beyond the current month. Your plans change? Switch providers. Better deal available? Jump on it. Heading home for three months? Just stop recharging.
Postpaid locks you in for 12-24 months typically. Breaking the contract early means paying out the remaining months or copping exit fees that can run into hundreds of dollars. I’ve seen students stuck paying for Australian plans while back home for extended periods because breaking the contract cost more than just keeping it.
The flexibility matters more than you think. My first year in Melbourne, I changed suburbs twice, realised one provider had terrible coverage in my area, and needed to switch. With prepaid, that was a 30-minute process at a different shop. With postpaid, it would’ve been a nightmare of contract negotiations and fees.
Your student visa situation might change too. Course extensions, visa complications, or deciding to leave Australia earlier than planned all become more complicated when you’re locked into a phone contract. Keep your commitments minimal where possible.
Network Coverage Across Australia
The dirty secret about prepaid plans is they often use the exact same networks as postpaid plans. Boost runs on Telstra’s full network. Aldi uses Telstra. Belong uses Telstra. You’re getting the same coverage for half the price in many cases.
Telstra has the best coverage in Australia, especially regional areas. If you’re planning trips outside major cities or studying somewhere other than Sydney, Melbourne, or Brisbane, Telstra network matters. I learned this on a road trip to the Great Ocean Road where my Vodafone prepaid had zero signal for hours.
Optus is solid in cities but gets patchy in regional areas. Vodafone is fine in metro areas but don’t rely on it outside capital cities. For students spending most time in Melbourne, Sydney, or Brisbane CBD areas, network differences are minimal in daily life.
Check coverage maps before committing to any plan. Most providers have online coverage checkers where you can enter your home and uni suburbs. I made the mistake of signing up for a cheap plan with terrible coverage in Footscray where I was living. Saved $10 monthly but couldn’t make calls from my bedroom.
If you’re arriving fresh and need immediate connectivity, my guide to best SIM cards for newcomers at Australian airports covers the airport options specifically.
International Calling and Family Contact
This is where you need to pay attention to the fine print. Some prepaid plans include free international calls to select countries, which is brilliant if your home country is on the list. Others charge ridiculous per-minute rates that’ll blow through your credit in one call home.
I use Amaysim specifically because it includes unlimited calls to Bangladesh and most South Asian countries. Costs the same as plans without international inclusions, so it’s essentially free for me. I call my parents on regular voice calls instead of always relying on WhatsApp.
Postpaid plans sometimes include international calls but usually to fewer countries and with caps on minutes. The Optus plan I had included 100 minutes to select countries per month, which sounds generous until you’re on a two-hour call with family and burn through it in two conversations.
WhatsApp, Viber, and FaceTime over WiFi are still your best options for most international calls. But having backup included calling in your plan is handy for emergencies or when WiFi isn’t available. I wrote a whole piece on international calling options in Australia if this is a priority for you.
Bill Shock and Hidden Costs
Bill shock is the main reason I left postpaid and never looked back. Getting charged $15 for going 500MB over your data limit is infuriating, especially when you thought you had plenty left. Postpaid providers love this revenue stream.
Common postpaid gotchas I experienced:
- Data overage charges of $10 per GB automatically added
- International roaming left on by default when I visited Sydney (roaming charges within Australia, seriously)
- “Premium” SMS services that somehow got activated and charged $5 each
- Port-out fees when I tried to switch providers mid-contract
Prepaid eliminates most of this. You run out of data? Service slows down or stops until you recharge. No surprise bills, no automatic top-ups without your permission, no mysterious charges appearing on credit cards.
The only real “hidden cost” with prepaid is remembering to recharge on time. Let your service expire and you might lose your phone number, which is annoying if everyone has that number already. I set calendar reminders a few days before expiry to avoid this.
My guide on avoiding bill shock with phone and internet plans goes deeper into protecting yourself from unexpected charges.
Student Deals and Discounts
Both prepaid and postpaid providers occasionally offer student discounts, but they’re less common than you’d expect. Most “student deals” are just promotional rates available to everyone, marketed heavily around February-March when students arrive.
Optus has a verified student program that gives discounts on postpaid plans if you register with your student email. Last I checked, it was about 10-15% off standard pricing. Still works out more expensive than good prepaid plans though.
Some smaller providers run actual student promotions with bonus data or reduced rates. Belong (Telstra network) has done student offers before. Amaysim sometimes has first-month discounts that effectively give you 50% off initially.
The best “student deal” is often just choosing the cheapest prepaid plan that meets your needs. Don’t get seduced by offers that lock you into long contracts or upsell features you won’t use. I’ve covered where to actually find legitimate deals in my article on student deals for phone and internet plans in Australia.
What I’d Recommend for Different Student Situations
If you’re arriving fresh in Australia: Start with a cheap prepaid SIM from the airport or a convenient shop. Use it for the first month while you figure out your actual usage patterns and which network has good coverage where you’re living. Then switch to a proper plan once you know what you need.
If you’re on a tight budget: Stick with prepaid and choose providers like Aldi Mobile ($25 for 18GB) or Catch Connect ($20 for 60GB on sales). Skip the big three carriers entirely unless you specifically need their network coverage. The savings add up fast.
If you need international calling regularly: Look at Amaysim, Lebara, or Lyca Mobile prepaid plans that include calls to your home country. Compare exactly which countries are included and any minute caps. This feature alone can save you $20-30 monthly in call costs.
If you want a new phone desperately: Buy a refurbished or previous-generation model outright from places like JB Hi-Fi or online, then use prepaid. You’ll pay less overall than bundling into a postpaid contract, even if it means waiting a few months to save up the phone cost.
If you need maximum data for some reason: Look at prepaid plans with bonus data promotions. Catch Connect and Belong regularly have 60-100GB deals for $30-40. Way better value than postpaid equivalents.
My Current Setup and Why It Works
I’m using Boost Mobile prepaid at $30 per month for 40GB on Telstra’s full network. It’s not the absolute cheapest option, but Telstra coverage matters for the occasional regional trips I take, and 40GB is comfortable without being wasteful.
I bought my phone (previous-generation Pixel) outright from JB Hi-Fi on sale for $550 about 18 months ago. Spread over time, that’s roughly $30 per month for the phone cost. Combined with my $30 plan, I’m paying $60 monthly equivalent for phone and service combined.
A comparable postpaid plan with a similar phone bundled would run $80-100 monthly on a two-year contract, totaling $1,920-2,400 over the period. My setup costs about $1,440 over two years. That’s $480-960 saved, which is almost a return flight home or a month’s rent.
The prepaid approach requires more upfront cash for the phone, which I acknowledge not everyone has immediately. I saved for three months when I first arrived before buying my phone outright. Until then, I used a cheaper second-hand phone I bought for $200 with prepaid service.
For broader budget context, my sample monthly budget for Melbourne students shows where phone costs fit into overall living expenses.
Switching Between Prepaid and Postpaid
If you’re stuck in a postpaid contract and want to switch to prepaid, check your contract terms first. Most have early exit fees equal to the remaining monthly payments, but some charge flat cancellation fees instead. Do the maths on whether it’s worth paying to get out.
Porting your number is simple in Australia. You request a port-out from your new provider, they contact the old one, and it transfers within a few hours to a day usually. I’ve ported numbers three times now without losing the number or having gaps in service.
Keep your old service active until the port completes. If you cancel first, you lose the number and can’t port it. Common mistake that I nearly made until the phone shop person warned me.
Going from prepaid to postpaid is even easier since there’s no contract to break. But honestly, I can’t think of many situations where students benefit from that direction unless you need a specific phone that’s only available on contract.
eSIM Options for International Students
eSIM is becoming more common in Australia and worth considering if your phone supports it. Basically a digital SIM card instead of a physical one, which means you can have multiple phone numbers on the same device easily.
I use eSIM for my Australian number now. Set it up through Boost’s app, took about 10 minutes, and I can keep my Bangladesh number on the physical SIM slot for when I’m home. Switching between them is just a tap in settings.
Not all prepaid providers offer eSIM yet. Boost, Optus, Telstra, and Vodafone do. Smaller providers like Aldi and Amaysim are still catching up. If eSIM matters to you, it might limit your choices slightly.
The main advantage for students is keeping your home country number active on physical SIM while using Australian eSIM for local stuff. No more swapping SIM cards when you travel. I’ve written more about using eSIM in Australia as an international student if you want the full setup guide.
Frequently Asked Questions
Can I switch from postpaid to prepaid without losing my number?
Yes, you can port your number from postpaid to prepaid easily through the new provider. Check your postpaid contract for early exit fees first. The porting process takes a few hours to one day usually, and you keep the same number throughout.
Do prepaid plans work on student visas in Australia?
Absolutely. Prepaid plans actually work better for student visas than postpaid because there’s no credit check and you’re not locked into long contracts. I’ve used prepaid plans my entire time in Australia on a student visa with zero issues.
What happens if I run out of data on a prepaid plan?
Your data either slows to very slow speeds (like 1.5Mbps) or stops completely depending on the provider, but calls and texts usually keep working. You can buy data add-ons or just wait until your next recharge date. No extra charges appear like they do with postpaid overage fees.
Are postpaid plans worth it for the free phone?
Usually no, especially for students. You pay more monthly over the contract period than buying the phone outright and using prepaid separately. The “free” phone costs you $10-30 extra per month hidden in the plan price, which adds up to $240-720 over two years.
How do I choose between Telstra, Optus, and Vodafone networks?
Check coverage maps for where you actually live and study. Telstra has best coverage overall but costs more. Optus is good in cities, Vodafone is cheaper but patchy in regional areas. For Melbourne, Sydney, Brisbane city living, they’re all fine. My comparison of best mobile phone plans goes deeper into network differences.
Can I keep my prepaid number when I leave Australia?
Not really. You need to keep recharging to maintain the number, and most providers require Australian payment methods. When you leave permanently, you’ll lose the number. Not a big deal since you won’t need an Australian number anymore anyway.
Final Thoughts
Prepaid vs postpaid mobile plans in Australia isn’t even close for most international students. Prepaid wins on cost, flexibility, and avoiding nasty billing surprises. The only real advantage of postpaid is bundling a new phone, which you’re overpaying for anyway.
I wasted six months and probably $200 extra on postpaid before switching to prepaid and never looking back. The freedom of no contracts, no bill shock, and no credit checks makes student life simpler. You’ve got enough to worry about without mysterious phone bills adding to the stress.
Start with a basic prepaid plan, track your actual usage for a month, then adjust up or down based on reality. Most students end up on $25-35 monthly prepaid plans with plenty of data and never think about it again. That’s exactly where you want to be.
If you’re still sorting out your first month in Australia, check out my guides on first month setup costs and common money mistakes international students make. Getting your phone plan right is just one piece of setting up life here properly.
Prepaid vs postpaid mobile plans in Australia comes down to this: do you want flexibility and lower costs, or do you want a contract and a bundled phone you’re overpaying for? For students, the answer is almost always prepaid.
