Prepaid vs. postpaid: Which one should you choose?

Jacqui Dent - Editorial Strategist

Last updated 18 February 2026

Contents

In this prepaid vs. postpaid plans guide:

What is a prepaid plan?

What is a postpaid plan?

Prepaid vs. postpaid: Pros and cons
Prepaid vs. postpaid plans: Which is better value?

There used to be significant differences in value between postpaid and prepaid mobile plans, but these days the cost and inclusions are quite similar regardless of the option you choose. It's the way they bill that sets them apart and will influence which one you should choose.

Keep reading as we discuss these differences, inclusions and pros and cons below.

What is a prepaid plan?

A prepaid plan is a plan where you "recharge" your account at the start of the billing cycle.

This means that a prepaid plan is the best choice if you're looking to control your spending. You'll pay for credit before you start using your plan then, once you've hit your data limit, your service will pause, saving you from paying excess fees and giving you the choice of when you want to reactivate the service.

How do prepaid plans work?

Recharges come in various prices with varying inclusions and you are free to switch which recharge option you choose every time you top-up. Most operate on a 28-day expiry cycle and stipulate that any remaining inclusions are wiped clean when you reach the end of the expiry period. So you also need to be clever about how you pace your usage throughout the month.

For example, if you reach your data limit, your internet connection will pause but you'll still be able to make and receive calls and messages on plans with unlimited calling and text inclusions.

Here are some prepaid plans from our database of 28 providers that cost less than $30 per month and have at least a 28-day expiry. Most come with unlimited talk and text and a generous data allowance:

#1	TPG Editor's Pick	TPG Editor's Pick 30GB Small Plan 30GB data at download speeds up to 150Mbps Vodafone 5G Network in selected areas with 5G devices Deal: 50% off - $15/mth for first 6 months, then $30/mth ongoing. Available until withdrawn. T&Cs apply. $15.00 Per 1 Month Renewal Link not supplied	$15.00 Per 1 Month Renewal	Link not supplied
#2	felix mobile	felix mobile felix 25GB Mobile Plan 25GB data at download speeds up to 150Mbps On the Vodafone 5G/4G Mobile Network Deal: Get 50% off your first 3 mths when you switch to felix. $15/mth for first 3 mths, then $30/mth. Use promo code FELIX50. T+Cs apply $30.00 Per 1 Month Renewal Go to Site	$30.00 Per 1 Month Renewal	Go to Site
#3	Yomojo	Yomojo Starter 29GB Plan 29GB data at download speeds up to 150Mbps On the Optus 4G Plus Mobile Network $24.90 Per 30 Day Renewal Link not supplied	$24.90 Per 30 Day Renewal	Link not supplied
#4	Superloop	Superloop SuperSim Saver 4G Plan 15GB data at download speeds up to 100Mbps Uses part of the Telstra 4G Mobile Network Deal: FREE 2nd recharge for existing Superloop broadband customers or new customers signing up for a mobile & broadband service $25.00 Per 30 Day Renewal Go to Site	$25.00 Per 30 Day Renewal	Go to Site
#5	Kogan Mobile	Kogan Mobile Small Monthly Plan 25GB data On the Vodafone 4G Mobile Network $23.00 Per 30 Day Renewal Go to Site	$23.00 Per 30 Day Renewal	Go to Site
#6	ALDI mobile	ALDI mobile $28 Mobile Plan 12GB data at download speeds up to 150Mbps Uses parts of Telstra’s 5G and 4G mobile networks $28.00 Per 30 Day Renewal Link not supplied	$28.00 Per 30 Day Renewal	Link not supplied
#7	Boost Mobile	Boost Mobile $28 Prepaid 8GB data at download speeds up to 150Mbps Telstra 5G Network in selected areas with 5G devices $28.00 Per 28 Day Renewal Go to Site	$28.00 Per 28 Day Renewal	Go to Site
#8	Lyca Mobile Editor's Pick	Lyca Mobile Editor's Pick Unlimited Plan S 50GB data at download speeds up to 100Mbps Vodafone 5G Network in selected areas with 5G devices Deal: $15 for first 6 renewals when you activate this plan. Offer ends 31.12.26. T&Cs apply $15.00 Per 28 Day Renewal Link not supplied	$15.00 Per 28 Day Renewal	Link not supplied
#9	Everyday Mobile	Everyday Mobile Pre-paid Mobile $25 Recharge 22GB data at download speeds up to 100Mbps Uses part of the Telstra 4G Mobile Network Deal: Get 10% off an eligible Woolworths shop in store every month when you link your Everyday Rewards card. T&Cs apply $25.00 Per 30 Day Renewal Link not supplied	$25.00 Per 30 Day Renewal	Link not supplied
#10	iiNet	iiNet 100GB Large Plan 100GB data at download speeds up to 250Mbps Vodafone 5G Network in selected areas with 5G devices Deal: 50% off - $22.50/mth for first 6 months, then $45/mth ongoing. Available until withdrawn. T&Cs apply. $22.50 Per 1 Month Renewal Link not supplied	$22.50 Per 1 Month Renewal	Link not supplied

Best value prepaid mobile plans Australia

From heavy, everyday to occasional use, check out the best and cheapest prepaid mobile plans in our database. View our guide.

Prepaid inclusions

To provide better value, some prepaid plans come with data banking, which means you can save any data you don't use before it expires. Depending on the plan, data might roll over indefinitely or only until the next recharge or a set maximum. This feature isn't necessarily exclusive to prepaid plans, as many postpaid plans now offer it, but it still one of the better perks that come with this type of mobile plan.

You can also get long-expiry prepaid plans of 90, 180 or even 365 days, which can be handy if you don't use your phone very often.

Some suppliers offer prepaid starter kits, which include a SIM card and often apply a discounted price or bonus inclusions on your first charge. The important point is when you need to recharge the discounts/bonus may no longer apply.

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What is a postpaid plan?

On the other hand, a postpaid plan is a contract where you use your plan's inclusions and agree to pay the set price at the end of the billing cycle (usually on a monthly basis). Postpaid plans will continue to operate even after you've hit your plan limits. Based on the terms of your plan, additional fees may be added to your next bill, but there's no interruption to your service.

How do postpaid plans work?

You choose a plan and every month your telco will bill you and automatically refresh your plan inclusions on the first day of your billing cycle. Postpaid plans can be SIM-only, which means you only pay for the phone service, or they can include a mobile phone.

Telstra has however flipped the script on its postpaid plans, known as Upfront plans. While plans still automatically renew, can be paired with a phone, and last a full month, you now have to pay on the first day of your billing cycle, rather than getting a bill with a payment period.

Postpaid inclusions

Postpaid plans almost always include unlimited talk and text, which means the only point of difference with a prepaid plan is how much data you get. If you use up all of your data credit on a postpaid account, your telco will let you continue to use its services, either for an extra fee or with data capped at slower-than-average speeds.

Plans with slower backup data are sometimes referred to as unlimited data mobile plans, but this term is misleading, as a speed limit is still a limit. That's why carriers give them other names, like plans with "endless data". Telstra, Optus, and Vodafone have all swapped excess data fees for speed caps on their plans. Vodafone and Felix also offer this for prepaid plans, but this perk is much more common among postpaid mobile providers.

Here is a breakdown of each mobile provider and their speed caps:

Plans	Network	Full-speed data	Unlimited data capped speed
Belong postpaid plans	Telstra	Limited	1Mbps
Dodo postpaid plans	Optus	Limited	256Kbps
Telstra Upfront plans	Telstra	Limited	1.5Mbps
Optus postpaid plans	Optus	Limited	1.5Mbps
Vodafone prepaid plans	Vodafone	Limited	1.5Mbps
Vodafone postpaid plans	Vodafone	Limited	2Mbps
felix prepaid plans	Vodafone	Limited	1.5Mbps
felix unlimited mobile plan	Vodafone	None	40Mbps
Aussie Broadband postpaid plans	Optus	Limited	1.5Mbps

SIM-only vs. included handsets

SIM-only plans are usually better value than plans with phones included, as there are more competitive options to choose from, including plans from smaller providers. Choosing a SIM-only plan just means you will have to bring an existing handset or buy one outright (if you can afford to).

Here are some popular SIM-only postpaid plans from our database of 28 providers that come with at least 5GB of data.

#1	SpinTel Editor's Pick	SpinTel Editor's Pick $23 Mobile Plan 25GB data at download speeds up to 150Mbps Optus 5G in selected areas with 5G devices ex. NT WhistleOut Special: Enjoy $11 off for the first 6 months for new customers - $12/mth for first 6 months, then $23/mth $12.00/mth Min. cost $12 Go to Site	$12.00/mth Min. cost $12	Go to Site
#2	Tangerine Telecom	Tangerine Telecom 30GB 5G Mobile SIM 30GB data at download speeds up to 150Mbps Uses parts of Telstra’s 5G and 4G mobile networks Deal: 50% off plan fees for 4 months - $15/mth for 4 months then $30/mth. Offer available until withdrawn. $30.00/mth Min. cost $15 Go to Site	$30.00/mth Min. cost $15	Go to Site
#3	Pivotel	Pivotel 25GB Mobile Swift Plan 25GB data On the Vodafone 4G Mobile Network Deal: Incl. 50% off - $11.45/mth for first 6 months, then $22.90/mth ongoing. Offer ends 31.10.2026. T&Cs apply. $11.45/mth Min. cost $11.45 Go to Site	$11.45/mth Min. cost $11.45	Go to Site
#4	Dodo Editor's Pick	Dodo Editor's Pick Medium Mobile Plan 40GB data at download speeds up to 150Mbps Optus 5G in selected areas (exc NT) with a 5G device Deal: 50% off for first 4 mths! Get the Medium Mobile Plan for $15/mth for first 4 mths. New and returning mobile customers only. Ends 27.10 $30.00/mth Min. cost $15 Go to Site	$30.00/mth Min. cost $15	Go to Site
#5	Swoop	Swoop 30GB SIM Only 5G 30GB data at download speeds up to 150Mbps Vodafone 5G Network in selected areas with 5G devices Deal: Includes $11 off for first 6 months - $14/mth for first 6 months then $25/mth after that. Offer ends 30.06.27 $14.00/mth Min. cost $14 Go to Site	$14.00/mth Min. cost $14	Go to Site
#6	Optus	Optus $60 Optus Choice Plus Plan 100GB data Optus 5G in selected areas (exc NT) with a 5G device Deal: $39/mth and 100GB/mth for first 12 months, then 60GB/mth and $60/mth or as notified. New services. Ends 12.11.26. Terms apply. $39.00/mth Min. cost $39 Go to Site	$39.00/mth Min. cost $39	Go to Site
#7	Vodafone	Vodafone $58 Small SIM Only Plan 65GB data Vodafone 5G Network in selected areas with 5G devices Deal: Includes $13/mth off plan fees for first 12 months when you stay connected to this plan. Ends 29.10.26. T&Cs apply. $45.00/mth Min. cost $45 Go to Site	$45.00/mth Min. cost $45	Go to Site
#8	Moose Mobile	Moose Mobile Moose 23 SIM Only 30GB data at download speeds up to 150Mbps On the Vodafone 4G Mobile Network Deal: Get 30GB for $14 – Includes $9 off for first 6 months, then reverts to $23. Offer ends 30.06.27 $14.00/mth Min. cost $14 Link not supplied	$14.00/mth Min. cost $14	Link not supplied
#9	Belong	Belong 25GB Mobile Plan 85GB data at download speeds up to 150Mbps Uses parts of Telstra’s 5G and 4G mobile networks Deal: Includes 60GB monthly bonus data for first 12 months when you activate your new service by 04.11.26. T&Cs apply. $34.00/mth Min. cost $34 Link not supplied	$34.00/mth Min. cost $34	Link not supplied
#10	More	More 75GB 5G Mobile SIM 75GB data at download speeds up to 150Mbps Uses Telstra Wholesale 4G/5G mobile networks Deal: Get $10/mth off new mobile plans for 36mths, then $4/mth ongoing when you sign up with a CommBank debit or credit card. Ends 31.3.27 $46.00/mth Min. cost $46 Link not supplied	$46.00/mth Min. cost $46	Link not supplied

And here are some of the cheapest 24-month postpaid plans from our database paired with the iPhone 17 for comparison from Telstra, Optus and Vodafone. These plans are contract-free, but you'll need to pay out the remaining value of your phone if you leave before your term is up. You can typically pick between 24- and 36-month terms.

#1	Optus	Optus $60 Optus Choice Plus Plan 100GB data Optus 5G in selected areas (exc NT) with a 5G device 36 mths device payments Deal: $39/mth and 100GB/mth for first 12 months, then 60GB/mth and $60/mth or as notified. New services. Ends 12.11.26. Terms apply. $77.86/mth Min. cost $1,437.96 Go to Site	$77.86/mth (plan + phone) Min. cost $1,437.96	Go to Site
#2	Vodafone	Vodafone $58 Small Plan 65GB data Vodafone 5G Network in selected areas with 5G devices 36 mths device payments Deal: Includes $13/mth off plan fees for first 12 months when you stay connected to this plan. Ends 29.10.26. T&Cs apply. $88.02/mth Min. cost $1,593.72 Go to Site	$88.02/mth (plan + phone) Min. cost $1,593.72	Go to Site
#3	Vodafone	Vodafone $68 Medium Plan 220GB data Vodafone 5G Network in selected areas with 5G devices 36 mths device payments Deal: Includes $18/mth off plan fees for first 12 months when you stay connected to this plan. Ends 29.10.26. T&Cs apply. $93.02/mth Min. cost $1,598.72 Go to Site	$93.02/mth (plan + phone) Min. cost $1,598.72	Go to Site
#4	Vodafone	Vodafone $78 Large Plan 420GB data Vodafone 5G Network in selected areas with 5G devices 36 mths device payments Deal: Includes $23/mth off plan fees for first 12 months when you stay connected to this plan. Ends 29.10.26. T&Cs apply. $98.02/mth Min. cost $1,603.72 Go to Site	$98.02/mth (plan + phone) Min. cost $1,603.72	Go to Site
#5	Optus	Optus $69 Optus Promo Plan 360GB data Optus 5G in selected areas (exc NT) with a 5G device 36 mths device payments Deal: Upgrade & Protect included when you add a phone on a payment plan. Plus, get up to $10/mth SubHub credit for 12 mths. T&Cs apply. $107.86/mth Min. cost $1,467.96 Go to Site	$107.86/mth (plan + phone) Min. cost $1,467.96	Go to Site
#6	Optus	Optus $70 Optus Choice Plus Plan 240GB data Optus 5G in selected areas (exc NT) with a 5G device 36 mths device payments $108.86/mth Min. cost $1,468.96 Go to Site	$108.86/mth (plan + phone) Min. cost $1,468.96	Go to Site
#7	Telstra	Telstra $74 Basic Upfront Mobile Plan 50GB data Telstra 5G Network in selected areas with 5G devices 36 mths device payments $117.02/mth Min. cost $1,622.72 Link not supplied	$117.02/mth (plan + phone) Min. cost $1,622.72	Link not supplied
#8	Telstra	Telstra $84 Essential Upfront Mobile Plan 180GB data Telstra 5G Network in selected areas with 5G devices 36 mths device payments $127.02/mth Min. cost $1,632.72 Link not supplied	$127.02/mth (plan + phone) Min. cost $1,632.72	Link not supplied
#9	Optus	Optus $90 Optus Choice Plus Plan 480GB data Optus 5G in selected areas (exc NT) with a 5G device 36 mths device payments SubHub: Receive up to $20/mth SubHub credit when you have an active SubHub account with subs greater than $0. T&Cs apply $128.86/mth Min. cost $1,488.96 Go to Site	$128.86/mth (plan + phone) Min. cost $1,488.96	Go to Site
#10	Telstra	Telstra $99 Premium Upfront Mobile Plan 300GB data Telstra 5G Network in selected areas with 5G devices 36 mths device payments $142.02/mth Min. cost $1,647.72 Link not supplied	$142.02/mth (plan + phone) Min. cost $1,647.72	Link not supplied

Prepaid vs. postpaid: Pros and cons

There are lots of reasons why you'd typically choose a prepaid plan over a postpaid one and vice versa. It usually comes down to budget, what inclusions you're looking for and how you use your phone.

Here are the pros and cons of prepaid mobile plans:

Pros

Easier to track spending
Plenty of affordable options
Great if want to avoid a credit check
No excess data charges

Cons

Data limits
No handset options
Sometimes capped at lower speeds
Doesn't always include 5G
28-day billing cycles mean 13 recharges per year

And here are the pros and cons of postpaid mobile plans:

Pros

You can get month-long plans
Can be paired with a device
Usually includes 5G as standard
Better international roaming add-ons

Cons

Often require a credit check
Getting these plans with a phone can be quite costly
Can include excess data charges
Harder to budget with these plans meaning they're not ideal mobile plans for seniors or kids

Prepaid vs. Postpaid plans: Which is better value?

It's a common misconception that prepaid plans tend to be cheaper than postpaid plans. The truth is you can find plenty of cheap mobile plans in either category.

Because of the numerous similarities between prepaid and postpaid plans, the real answer to this question is whether you value the security of a fixed cost each month or the flexibility of a service that has no hard limit.

If you rely on your mobile connection for work, we'd recommend a postpaid plan. Alternatively, we tend to suggest prepaid plans in situations where you might not be using the phone yourself, like a parent looking at phone plans for kids. This could be because you want to limit access to the internet or are concerned that a late-night Netflix binge will cost you a small fortune. A prepaid service has built-in protection against excess usage fees in instances like this.

Jacqui Dent

Editorial Strategist

Jacqui Dent is an Editorial Content Strategist at WhistleOut Australia, where she writes about mobile phone plans, NBN plans and everything in between. Over her ten-year career, she has worked to provide informed advice to the public, first in the sphere of writing and now in the world of consumer tech. Jacqui has also written about consumer telco products for Business Insider, Pedestrian and the 50Up Club.

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