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 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 |
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.
Did you know? According to the ACCC's Internet Activity Report, Aussies on average use around 9GB per month on a prepaid plan versus around 19GB 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.
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 October 2026 is about $42, while postpaid plans average $46. 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.
We've scored over 290+ mobile plans on everything from cost to data allowance and important features.
Our experts give each plan a score out of 10 - totally fair, with no commercial strings attached.
We've scored over 290+ mobile plans on everything from cost to data allowance and important features.
Our experts give each plan a score out of 10 - totally fair, with no commercial strings attached.
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.
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