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

Most Australian small businesses pay between $20 and $60 per month in total for a cloud phone system. A sole trader or two-person business typically pays $25-40 all in. A 10-person office typically pays $200-400 per month 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

Cloud phone systems (also called hosted VoIP, meaning your calls travel over the internet rather than a copper telephone line) sit in three broad pricing bands. 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.

Most small Australian businesses land on the Standard tier. Basic is genuinely sufficient for sole traders and very small teams. Advanced is often oversold to businesses that will never use the analytics or CRM connector, and that wastes $15-25 per user per month.

What's Included vs What Costs Extra

Most hosted plans include: one geographic number per user (a local 02/03/07/08 number tied to your state), unlimited local and national calls, voicemail, and the software app. That is your baseline, what you call the plan fee.

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, often an add-on even on Standard plans, typically $5-15/user/month extra
• 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

Hardware is also separate, your plan fee does not include physical desk phones. 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. Every hosted VoIP provider offers a softphone app, software that turns your existing laptop, desktop, or mobile into a business phone. Zero hardware cost, download and go.

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

Most cloud providers charge $0-200 for setup. Many charge nothing if you self-configure through their online portal, the setup process is usually a 30-60 minute walkthrough. Provider-assisted setup (someone configures it for you) typically costs $100-200 once.

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 $25-50 once. It takes 2-10 business days in Australia. Your old number keeps working during the transfer. This is not something to fear; it is a standard process providers handle every day.

If you are getting a brand new number rather than porting, it is instant and usually free. Numbers (02, 03, 07, 08) are allocated as part of your plan.

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 full cost. No line rental on top, no per-call charges on local/national calls, no contract lock-in from most providers.

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 numbers are not free for you. You pay per inbound minute (typically $0.08-0.15/minute depending on the provider and whether callers are on mobile or landline). High call volumes can add up quickly.
• Contract exit fees, some providers lock you in for 24 months with early termination fees of $200-500. Others are month-to-month. Always ask 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. A $30/user/month plan with unlimited local and national calls is almost always cheaper for a business that makes more than a handful of calls per day. 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 Advanced because it sounds more professional wastes $15-25/user/month.

Mistake 3: Assuming cheap means bad quality. Entry-level plans from reputable hosted providers use the same underlying infrastructure as their premium tiers. Call quality on NBN is determined primarily by your internet connection, not your plan tier. A $20/user/month plan on a solid NBN connection will sound better than a $50/user/month plan on a congested connection.

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.