Prepaid vs postpaid plans

Spoiler alert: The gap between prepaid and postpaid mobile plans isn’t as big as it used to be.

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What are prepaid and postpaid plans?

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.

Tim Bennett's headshot

"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."

Insurance and utilities publisher

Prepaid vs postpaid plans: What's the difference?

As we've already mentioned, the differences between prepaid and postpaid plans have narrowed.

This makes choosing a mobile plan a lot easier.

Prepaid plansPostpaid plans
Contract lengthNo lock-in contractNo lock-in contract the majority of the time - there may be a couple of exceptions but it's rare
Payment periodYou have to pay upfrontYou will either have to pay at the end of the billing cycle or some postpaid plans expect you to pay upfront these days
Excess chargesThere are no excess data chargesSome providers will charge you for going over your monthly data allowance. However, others will slow down your download speeds instead
Expiry periodMost common expiry periods include 7-day, monthly, 28-day, 30-day, and long-expiry plans (commonly 90, 180, or 365 days)Monthly
RechargesUnless you have auto-recharge set up, you'll need to actively renew your plan before it expiresThe 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.

Is prepaid or postpaid better value?

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 December 2024 is $37.75, while postpaid plans average $39.22. 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

1 - 5 of 154
Name Product AUFMP-SIM Data Price Apply Price
iiNet Medium Plan
PrepaidNo lock-in contract
$17.50/mth for the first 6 months, then $35/mth. Eligibility criteria, T&Cs apply.
iiNet Medium Plan
Prepaid
$17.50/mth for the first 6 months, then $35/mth. Eligibility criteria, T&Cs apply.
  • Unlimited national calls & texts
  • Vodafone 5G/4G network
50GB
$17.50
per month
Go to site
View details
$17.50/mth for the first 6 months, then $35/mth. Eligibility criteria, T&Cs apply.
  • Unlimited standard national calls & texts
50 GB
Data
$17.50
per month
felix Subscription Unlimited
SubscriptionNo lock-in contract
$20/mth for the first 3 months, then $40/mth. Use promo code FELIX50. Eligibility criteria, T&Cs apply.
felix Subscription Unlimited
Subscription
$20/mth for the first 3 months, then $40/mth. Use promo code FELIX50. Eligibility criteria, T&Cs apply.
Finder Award
  • Unlimited national calls & texts
  • Vodafone 5G/4G network
Unlimited data
At speeds up to 20Mbps
$20
per month
Go to site
View details
GREEN COMPANY
$20/mth for the first 3 months, then $40/mth. Use promo code FELIX50. Eligibility criteria, T&Cs apply.
  • Unlimited standard national calls & texts
Unlimited data
At speeds up to 20Mbps
$20
per month
Catch Connect 365 Day Plan 120GB Finder Exclusive
PrepaidNo lock-in contract
$119 for the first recharge, then $150/recharge. Eligibility criteria, T&Cs apply. Ends 17.12.24
Catch Connect 365 Day Plan 120GB Finder Exclusive
Prepaid
$119 for the first recharge, then $150/recharge. Eligibility criteria, T&Cs apply. Ends 17.12.24
Exclusive
  • Unlimited national calls & texts
  • Optus 4G network
120GB
$119
per 365 day recharge
Go to site
View details
Exclusive
$119 for the first recharge, then $150/recharge. Eligibility criteria, T&Cs apply. Ends 17.12.24
  • Unlimited standard national calls & texts
120 GB
Data
$119
per 365 days expiry
Optus Flex Plus $35
PrepaidNo lock-in contract
55GB on first 3 recharges, then 20GB. Plus, unlimited data every weekend with AutoRecharge active. New services only. Speed caps and T&Cs apply. Ends 16.3.25
Optus Flex Plus $35
Prepaid
55GB on first 3 recharges, then 20GB. Plus, unlimited data every weekend with AutoRecharge active. New services only. Speed caps and T&Cs apply. Ends 16.3.25
  • Unlimited national calls & texts
  • Optus 5G/4G network
55GB
$35
per 28 day recharge
Go to site
View details
55GB on first 3 recharges, then 20GB. Plus, unlimited data every weekend with AutoRecharge active. New services only. Speed caps and T&Cs apply. Ends 16.3.25
  • Unlimited standard national calls & texts
55 GB
Data
$35
per 28 days expiry
TPG Small
PrepaidNo lock-in contract
$12.50/mth for the first 6 months, then $25/mth. Eligibility criteria, T&Cs apply.
TPG Small
Prepaid
$12.50/mth for the first 6 months, then $25/mth. Eligibility criteria, T&Cs apply.
Finder Award
  • Unlimited national calls & texts
  • Vodafone 4G network
25GB
$12.50
per month
Go to site
View details
$12.50/mth for the first 6 months, then $25/mth. Eligibility criteria, T&Cs apply.
  • Unlimited standard national calls & texts
25 GB
Data
$12.50
per month
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Compare postpaid plans

1 - 5 of 163
Name Product AUFMP-SIM Data Price Apply Price
Southern Phone Finder Exclusive
PostpaidNo lock-in contract
$15/mth for the first 6 months, then $29/mth. Eligibility criteria, T&Cs apply. Ends 31.1.25
Southern Phone Finder Exclusive
Postpaid
$15/mth for the first 6 months, then $29/mth. Eligibility criteria, T&Cs apply. Ends 31.1.25
Exclusive
  • Unlimited national calls & texts
  • Optus 5G/4G network
50GB
$15
per month
Go to site
View details
Exclusive
$15/mth for the first 6 months, then $29/mth. Eligibility criteria, T&Cs apply. Ends 31.1.25
  • Unlimited standard national calls & texts
50 GB
Data
$15
per month
Circles.Life 6GB Finder Exclusive
PostpaidNo lock-in contract
22GB for $10/mth for the first 12 months, then 6GB for $15/mth. Use promo code 12FINDER22GB. Eligibility criteria, T&Cs apply. Ends 31.12.24
Circles.Life 6GB Finder Exclusive
Postpaid
22GB for $10/mth for the first 12 months, then 6GB for $15/mth. Use promo code 12FINDER22GB. Eligibility criteria, T&Cs apply. Ends 31.12.24
Exclusive
  • Unlimited national calls & texts
  • Optus 4G network
22GB
$10
per month
Go to site
View details
Exclusive
22GB for $10/mth for the first 12 months, then 6GB for $15/mth. Use promo code 12FINDER22GB. Eligibility criteria, T&Cs apply. Ends 31.12.24
  • Unlimited standard national calls & texts
22 GB
Data
$10
per month
Dodo $28
PostpaidNo lock-in contract
$14/mth for the first 3 months, then $28/mth. Eligibility criteria, T&Cs apply. Order by 25.2.25
Dodo $28
Postpaid
$14/mth for the first 3 months, then $28/mth. Eligibility criteria, T&Cs apply. Order by 25.2.25
  • Unlimited national calls & texts
  • Optus 4G/3G network
30GB
No excess data charges
$14
per month
Go to site
View details
$14/mth for the first 3 months, then $28/mth. Eligibility criteria, T&Cs apply. Order by 25.2.25
  • Unlimited standard national calls & texts
30 GB
Data
$14
per month
Belong 40GB
PostpaidNo lock-in contract
Black Friday Deal: 60GB/mth for the first 12 months, then 40GB/mth. Eligibility criteria, T&Cs apply. Ends 12.1.25
Belong 40GB
Postpaid
Black Friday Deal: 60GB/mth for the first 12 months, then 40GB/mth. Eligibility criteria, T&Cs apply. Ends 12.1.25
  • Unlimited national calls & texts
  • Wholesale Telstra 5G/4G network
60GB
No excess data charges
$35
per month
Go to site
View details
Black Friday Deal: 60GB/mth for the first 12 months, then 40GB/mth. Eligibility criteria, T&Cs apply. Ends 12.1.25
  • Unlimited standard national calls & texts
60 GB
Data
$35
per month
Tangerine 12GB 4G SIM
PostpaidNo lock-in contract
Tangerine 12GB 4G SIM
Postpaid
  • Unlimited national calls & texts
  • Wholesale Telstra 4G network
12GB
$22
per month
Go to site
View details
  • Unlimited standard national calls & texts
12GB
Data
$22
per month
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Why compare mobile phone plans with Finder?

helpCall us fan boys (and gals). Because nerding out on data inclusions and discount sim deals is in our DNA.
freeWe 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.
independentTried 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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Written by

Editor I Tech and utilities expert

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 303 Finder guides across topics including:
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  • Consumer tech

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