In Australia, when it comes to mobile plans, you've got two main options: prepaid and postpaid.
Prepaid plans are exactly what they sound like. You pay upfront, at the start of the month, before you've used any of your mobile services.
Postpaid plans are a bit like your utility or credit card bills - you pay at the end of the month or billing cycle, covering what you've already used.
But there's a catch, and this is where the lines between prepaid and postpaid plans blur.
In more recent years, providers advertising their plans as postpaid actually ask you to pay upfront, similar to what you would do with a prepaid plan.
"These days, I find prepaid and postpaid plans operate pretty much the same way. It used to be that postpaid was always on a contract and prepaid recharges had to be bought from the supermarket. I've tried both in recent years and most have no contract and auto-recharge. So the difference is pretty minimal - I just find the plan with the right price and data for me."
As we've already mentioned, the differences between prepaid and postpaid plans have narrowed.
This makes choosing a mobile plan a lot easier.
Prepaid plans
Postpaid plans
Contract length
No lock-in contract
No lock-in contract the majority of the time - there may be a couple of exceptions but it's rare
Payment period
You have to pay upfront
You will either have to pay at the end of the billing cycle or some postpaid plans expect you to pay upfront these days
Excess charges
There are no excess data charges
Some providers will charge you for going over your monthly data allowance. However, others will slow down your download speeds instead
Expiry period
Most common expiry periods include 7-day, monthly, 28-day, 30-day, and long-expiry plans (commonly 90, 180, or 365 days)
Monthly
Recharges
Unless you have auto-recharge set up, you'll need to actively renew your plan before it expires
The plan will continue month on month unless you proactively cancel it
Pros and cons of prepaid and postpaid plans
Choosing between prepaid and postpaid plans will come down to how you use your phone, your budget and what inclusions you're after.
Here's a rundown of the pros and cons of both.
Prepaid plans
Pros
You pay upfront, so you can't exceed your budget
Since there's no long-term commitment, there's usually no need for a credit check either
You can choose the amount of data, calls, and texts you need and change your plan easily if your usage changes.
Majority of plans include unlimited local calls and texts
There are a range of plans with different data options, so you can find one that fits your needs perfectly.
Some providers also offer additional features such as international calls and data rollover.
Cons
You'll need to top up and pay extra if you run out of data before the next recharge
A 28-day expiry means you'll pay 13 bills in the year instead of 12
You won't be able to pair it with a handset repayment plan
Postpaid plans
Pros
No excess data charges on some plans
Tend to come with extra perks such as data rollover and international call inclusions
You'll pay monthly which takes the hassle out of dealing with weird expiry periods
They can be paired with a handset repayment plan if the provider sells phones
Cons
Possibility of being hit by excess charges on some plans
They often require a credit check
Signing up for one to get on a handset repayment plan can be costly
Did you know? According to the ACCC's Internet Activity Report, Aussies on average use 8.3GB per month on a prepaid plan versus 16.9GB on a postpaid plan. Interestingly, Finder's Consumer Sentiment Tracker found that people, on average, get 40GB of data on their plan - meaning they might be paying for more data than they actually need.
Getting a phone with a postpaid plan
As we mentioned in the pros and cons section, one perk of a postpaid plan is the option to pair it with a handset repayment plan.
You'll find these plans with Telstra, Optus, and Vodafone. The best part? There's no lock-in contract anymore, so you can cancel anytime. Just keep in mind you'll need to pay off the remaining cost of the phone.
You can compare phone plans from some of the major brands to get a better idea of the costs.
Both can be great options, depending on what you're looking for in a mobile plan.
For instance, long-expiry prepaid plans can be cheaper in the long run if your data needs are low and consistent throughout the year.
Several postpaid plans now come with no excess charges, meaning you can still handle basic tasks until your next billing cycle.
We recommend comparing both options in our tables - just know your budget, how much data you need, and whether you want any extras like international calls.
Good to know: The average cost of month-to-month prepaid plans in Finder's database as of November 2024 is $37.97, while postpaid plans average $39.47. As you can see, there's not much of a difference. Getting the best value out of your mobile plan will come down to which provider you choose.
Compare prepaid plans
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Call us fan boys (and gals). Because nerding out on data inclusions and discount sim deals is in our DNA.
We hate sneaky fees. Paying $2 per extra megabyte? Not on our watch. We're deep in the weeds, fact-checking dozens of Aussie telco contracts to keep you aware of the hidden ts & cs.
Tried and tested. We give these plans a run for their money and listen to the feedback of the millions of Aussies who have used our plans comparison.
Frequently asked questions
Yes, you can transfer your mobile number from one mobile plan to another, regardless of whether it's prepaid or postpaid.
The easiest way to tell whether your plan is prepaid or postpaid is to check how you're billed. If you're sent a bill at the end of every month, you're on a postpaid plan.
If you have to go to your account or app and recharge manually, or have an auto recharge set up for the start of the month, then you're on prepaid.
The only caveat is some postpaid providers like Telstra, MATE and Dodo make you pay upfront before you start using their services each month. To be doubly sure, it's best to check with your provider directly what plan you're on.
The difference between prepaid and postpaid isn't as big as it used to be since many postpaid providers now charge at the start of the billing cycle, much like prepaid plans.
The main difference is that prepaid plans offer different expiry lengths, while postpaid plans are billed monthly and can cost a bit more based on this.
We've broken the differences down in detail in our guide, so be sure to check it out!
Mariam Gabaji is an editor and tech and utilities expert at Finder with 12+ years of experience as a journalist. She's committed to helping households cut through the industry jargon and save money on their bills. Her expertise is often featured in media including the ABC, Yahoo Finance, 9News, 7News, A Current Affair, The Guardian, SBS and Money Magazine. See full bio
Mariam's expertise
Mariam has written 298 Finder guides across topics including:
There are just 3 mobile networks in Australia but over 50 phone companies to choose from. The choice can be overwhelming so we’ve made it easier by rounding up the 10 mobile service providers on Finder instead.
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Call us fan boys (and gals). Because nerding out on data inclusions and discount sim deals is in our DNA.
We hate sneaky fees. Paying $2 per extra megabyte? Not on our watch. We're deep in the weeds, fact-checking dozens of Aussie telco contracts to keep you aware of the hidden ts & cs.
Tried and tested. We give these plans a run for their money and listen to the feedback of the millions of Aussies who have used our plans comparison.
