Phone Plans for New Arrivals: Prepaid vs Postpaid in Australia

Prepaid vs Postpaid: Which Is Better for New Arrivals?

The first decision is whether to go prepaid or postpaid. For most new arrivals, prepaid is the better choice initially. Here's why:

Start with prepaid when you first arrive. You can buy a SIM at the airport, activate it in minutes, and have a working phone immediately. No credit check, no contract, no Australian ID required. Once you're settled (with a job, bank account, and 100 points of ID), you can switch to postpaid if the value is better for your usage.

The Three Mobile Networks in Australia

Australia has three physical mobile networks. Every phone plan in the country runs on one of these three:

Telstra

Telstra is Australia's largest and most reliable network. It has the best coverage, particularly in rural and regional areas. If you'll be travelling outside major cities or working in regional Australia, Telstra is the safest choice. Telstra is also the most expensive — their plans cost 10-30% more than competitors for similar inclusions. Telstra uses bands that provide excellent 5G coverage in major cities.

Optus

Optus is Australia's second-largest network. Coverage is excellent in cities and major regional areas, but noticeably weaker than Telstra in remote areas. Optus offers better value than Telstra — similar data inclusions at lower prices. If you'll be living and working in a major city (Sydney, Melbourne, Brisbane, Perth, Adelaide), Optus is a great choice.

Vodafone (TPG Telecom)

Vodafone merged with TPG Telecom and now operates as the third network. Coverage is good in cities but limited in regional/rural areas. Vodafone is typically the cheapest of the three direct carriers and offers competitive plans with generous data. Best suited for city-based users who don't travel to remote areas.

MVNOs (Resellers)

Many budget providers resell capacity on the three major networks. These MVNOs (Mobile Virtual Network Operators) offer the same coverage at lower prices. Popular MVNOs include:

• Boost Mobile: Uses the full Telstra network. Best budget option for Telstra coverage
• Amaysim: Uses the Optus network. Very competitive pricing
• Belong: Owned by Telstra, uses a portion of the Telstra network. Good value
• Felix Mobile: Uses the Vodafone/TPG network. Simple $35/month unlimited plan
• Woolworths Mobile: Uses the Telstra network. Earns Woolworths Rewards points

Best Prepaid Plans for New Arrivals (2025-26)

Best Postpaid Plans

Once you have 100 points of ID and a stable income, postpaid plans can offer slightly better value. Popular postpaid options:

• Telstra Essential Plus ($58/month): 80GB, unlimited calls/texts, international calls to 20 countries, 5G access
• Optus Choice Plus ($49/month): 80GB, unlimited calls/texts, international calls to 15 countries, Optus Sport streaming included
• Vodafone Lite Plus ($45/month): 60GB, unlimited calls/texts, international calls to 20 countries
• Spintel ($36/month): 50GB on Optus network, unlimited calls, good value budget postpaid

The main advantage of postpaid is the option to bundle a new phone with your plan. If you need a new smartphone, carriers offer devices on 12-36 month repayment plans added to your monthly bill. However, buying a phone outright (or bringing your own from overseas) and choosing a SIM-only plan is almost always cheaper overall.

eSIM Options for New Arrivals

An eSIM is a digital SIM embedded in newer phones (iPhone XS and later, most Samsung Galaxy S20+, Google Pixel 3+). Instead of inserting a physical SIM card, you scan a QR code or download a profile to activate your plan. eSIM is increasingly popular because you can activate a plan before you even arrive in Australia.

Australian providers offering eSIM include:

• Telstra: eSIM available for prepaid and postpaid
• Optus: eSIM available for most plans
• Vodafone: eSIM available
• Boost Mobile: eSIM available for prepaid
• Belong: eSIM available

If your phone supports eSIM, you can keep your overseas physical SIM in one slot (for receiving messages and calls to your old number) and use the eSIM for your Australian plan. This dual-SIM setup is perfect for the first few weeks while you transition to your new Australian number.

International Call Inclusions

If you need to call family overseas regularly, choose a plan with included international calls. Many plans now include unlimited calls to selected countries at no extra cost. Countries typically included are:

• UK, Ireland, USA, Canada
• India, China, Hong Kong, Singapore, Malaysia
• Philippines, Vietnam, Thailand, Indonesia
• New Zealand, Fiji
• Most EU countries

If your country isn't included in standard international call packs, consider using WhatsApp, FaceTime, or Messenger for calls over WiFi/data instead. With 40-80GB of data per month on modern plans, you'll have plenty of data for video calls.

Where to Buy a SIM Card

You can buy a prepaid SIM card at several locations:

• Airport: Telstra, Optus, and Vodafone all have stores or vending machines at major airports (Sydney, Melbourne, Brisbane, Perth). Convenient but limited plan options and sometimes higher prices
• Supermarkets: Woolworths and Coles sell prepaid SIM starter kits from Telstra, Optus, Vodafone, and Boost. Usually the cheapest option ($2-30 for the starter kit, then recharge for your chosen plan)
• Retail stores: Telstra, Optus, and Vodafone have retail stores in shopping centres across Australia. Staff can help you choose a plan and activate the SIM
• Online: Order a SIM to your Australian address (or pick up eSIM instantly). Useful once you have an address, but not for day-of-arrival needs
• Convenience stores: 7-Eleven, newsagents, and petrol stations sell prepaid SIM kits and recharge vouchers

Keeping Your Overseas Number

Many new arrivals want to keep their overseas phone number active for a while. Here are your options:

• Dual SIM / eSIM: If your phone supports dual SIM, keep your overseas SIM in one slot and your new Australian eSIM in the other. You'll receive calls and messages on both numbers
• Roaming: Keep your overseas SIM active and set it to receive calls (don't make calls — roaming charges are expensive). Some overseas carriers let you suspend your plan at a low monthly fee
• Port your number: If you're from New Zealand, you can potentially port your NZ number to an Australian VoIP service. For other countries, this usually isn't possible
• Forward calls: Set up call forwarding on your overseas number to your new Australian number. Your overseas carrier may charge for this

For most people, the best approach is: activate an Australian SIM immediately, update your number with all important contacts and services over the first month, then cancel your overseas plan after 1-3 months.

Tips for New Arrivals

1. Get a SIM on Day One

You need an Australian phone number for virtually everything — bank accounts, Medicare, TFN applications, job applications, and accommodation. Get a SIM at the airport or your nearest supermarket on day one.

2. Start with Prepaid

No credit check, no contract, no commitment. You can always switch to postpaid later once you're settled and know your usage patterns.

3. Check Coverage for Your Area

Before choosing a network, check the coverage map for your suburb. All three carriers have coverage checkers on their websites. If you're in a major city, any network works. If you're in regional or rural Australia, Telstra (or Boost Mobile on the Telstra network) is the safest bet.

4. Consider Data-Heavy Plans

As a new arrival, you'll use your phone heavily for maps, translation apps, video calls home, job searching, and streaming. Aim for at least 30-40GB per month. Data is cheap in Australia compared to many countries.

5. Use WiFi Wherever Possible

Free WiFi is available at most cafes, libraries, shopping centres, and some train stations. Save your mobile data for when you're on the go. Most accommodation (hostels, share houses, apartments) includes WiFi in the rent.

Frequently Asked Questions

Can I use my overseas phone in Australia?

Yes, as long as your phone is unlocked. Most phones sold outright (without a carrier contract) are unlocked. If your phone was locked to an overseas carrier, you'll need to contact them to unlock it before inserting an Australian SIM. Australia uses the same mobile frequencies as most of the world, so compatibility is rarely an issue for phones made in the last 5 years.

Do I need ID to buy a prepaid SIM in Australia?

Yes. Since 2017, all prepaid SIM cards in Australia require identity verification. You'll need to provide your name, date of birth, and address. A foreign passport is accepted as ID. Activation is done online or in-store and usually takes 5-10 minutes.

Which network has the best coverage in Australia?

Telstra has the best coverage overall, especially in rural and regional areas. In major cities, all three networks (Telstra, Optus, Vodafone) provide excellent coverage. If you'll only be in Sydney, Melbourne, Brisbane, Perth, or Adelaide, any network will work well.

How much data do I need per month?

Most people use 10-30GB per month. As a new arrival, you may use more due to heavy map usage, video calls, and job searching. A 30-40GB plan is a good starting point. If you're on WiFi most of the time (home + work), 15-20GB is sufficient.

Can I get a plan with a new phone if I just arrived?

Postpaid phone-on-plan deals require a credit check and 100 points of ID. As a new arrival without Australian credit history, you may be declined. Start with a prepaid SIM, build credit history for 3-6 months, then consider a phone plan if needed. Alternatively, buy a phone outright (refurbished iPhones from $300-500 at stores like JB Hi-Fi).