Prepaid vs postpaid mobile plans
With a prepaid mobile plan you pay upfront for a set period, commonly 28 or 30 days or a long-expiry period such as 365 days, and when it runs out you recharge or stop. With a postpaid plan you are billed after each month for the plan fee and anything outside it. Prepaid has no bill and no credit check; postpaid usually has larger allowances, more add-ons and the option of paying off a phone.
Neither is cheaper as a rule. Prepaid suits people who want a hard spending limit or use little data; postpaid suits people who want to pay monthly by direct debit, combine several services, or buy a phone on repayments. The same rules against bill shock, the same complaints scheme and the same financial hardship protections apply to both.
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General information only. We don't compare every provider or plan in the market, and we may earn a commission if you sign up through our links.
Prepaid and postpaid side by side
The table sets out the structural differences. Individual plans vary, so the Critical Information Summary for a specific offer is the final word.
| Prepaid | Postpaid | |
|---|---|---|
| When you pay | Before the period, by recharge | After each month, on a bill |
| Credit check | No | Required for a plan with a minimum term over one month; a credit report check for new customers whose minimum total is over $1,000 |
| ID at sign-up | Required by law before activation | Required as part of the account and credit process |
| Period | Commonly 28 or 30 days; long-expiry options such as 365 days | Monthly, month-to-month or fixed term |
| Unused data | Expires at the end of the period unless the plan rolls over or banks it | Some plans roll over or bank unused data |
| Going over | You cannot owe more than you paid, unless you add credit or top-ups | Excess charges, top-ups or slowed speed, depending on the plan |
| Phone on repayments | Rare; buy the phone outright | Common, over 12, 24 or 36 months |
| Leaving | Stop recharging, or port your number | Port your number; pay any early termination charge or device balance |
What prepaid means in practice
Moneysmart describes prepaid as paying for your usage in advance, with credit that expires. The recharge buys an allowance of data, calls and texts for the period; if you do not recharge, the allowance ends, and how long the number stays active after that is set out in the provider's terms. The ACMA points out that prepaid mobiles still have a contract: the terms you accept when you activate.
The recharge period matters more than it looks. A 28-day plan renews 13 times a year, so its yearly cost is 13 times the recharge price, not 12. Long-expiry plans (180 or 365 days) suit people who use their phone mainly for calls and texts, such as a second phone or an older relative's phone, because one payment covers the year. Check whether the data on a long-expiry plan is a single pool for the year or a monthly allowance.
Prepaid brands compared
Prepaid plans differ most on how long a recharge lasts, what happens to unused data and whether 5G is included. This is what each brand's own pages showed on 2 October 2026:
| Brand | Network | Long-expiry option | Data rollover or banking | 5G on prepaid |
|---|---|---|---|---|
| Telstra | Telstra (prepaid excludes 5G Standalone sites) | 6 and 12-month recharges | Rolls over up to 200GB on 7 and 28-day recharges if you recharge before expiry | Yes, with speed caps on most recharges |
| Boost Mobile | Telstra (full prepaid network) | 6 and 12 months | Some 28-day recharges roll over unused data | Yes, in 5G areas with a compatible device |
| ALDI Mobile | Telstra Wholesale | 365 days ($289 5G Long Life, added after 2 October; checked 10 October 2026) | Unlimited rollover on eligible plans | Yes, on its current 30-day plans, with speed caps |
| Everyday Mobile from Woolworths | Telstra Wholesale | 365 days | Data Bank, and you can gift data | Yes, on its 30-day and long-expiry plans |
| Vodafone | Vodafone | 185 and 365 days (Prepaid Plus, checked 10 October 2026) | Rolls over up to 300GB per recharge if you recharge before expiry | Yes, on its 5G and 4G network |
| amaysim | Optus | Long-expiry SIM plans | Data banking | On its 5G SIM plans |
| Lebara | Vodafone | 365 days | Bank up to 500GB while the service is active | Not stated on its home page |
| Kogan Mobile | Vodafone | 365 days | Monthly plans roll over up to 200GB | On some plans |
Long-expiry (365-day) prepaid plans
A long-expiry plan buys a block of time, usually 6 or 12 months, with one payment. They suit a phone used mostly for calls and texts, a second phone, or an older relative's phone. Check two things: whether the data is one pool for the whole period or a monthly allowance, and whether the plan rolls over or banks unused data, since many long-expiry recharges don't (Telstra's 6 and 12-month recharges, for example, aren't included in its data rollover). Our guide to 365-day prepaid plans compares each brand's long-expiry options.
Data rollover and data banking
Rollover carries unused data into your next recharge, usually only if you recharge before the current one expires; banking stores it in a bank you can draw on later, up to a limit. The limits vary a lot: Telstra rolls over up to 200GB, Vodafone up to 300GB per recharge, Lebara banks up to 500GB, and ALDI Mobile advertises unlimited rollover on eligible plans. If you often end a recharge with data left, a plan with rollover or banking lets a smaller plan go further.
Phone plans with no credit check (if you have bad credit)
If you have bad credit, or would rather avoid a credit check, prepaid is the straightforward option. A provider must check your identity before activating a prepaid service, but there is no credit check, because you pay before you use the service and can't run up a bill beyond what you've paid.
Postpaid is different. Before selling a postpaid plan with a minimum term longer than one month, the provider must assess whether you can afford it, and for a new residential customer whose minimum total cost is over $1,000 that includes a check with a credit reporting body. If you're struggling with an existing phone bill, ask the provider about its financial hardship policy, which every provider must have.
Prepaid ID checks
A provider cannot activate a prepaid mobile service until it has checked your identity under the Telecommunications (Service Provider - Identity Checks for Prepaid Mobile Carriage Services) Determination 2017. The ACMA says you need to give your name, date of birth and home address. The Determination lists the ways a provider can verify you, including an online check of a government document, an existing postpaid account, a financial transaction, a visual check of your documents in store, and, since 16 December 2025, a government-accredited Digital ID.
These checks exist to stop criminals using anonymous prepaid services, and the ACMA enforces them. It has said it will review the Determination as a priority in 2026. For you, it means having a driver's licence, passport or Medicare card handy when you activate, including for an eSIM bought online.
What postpaid means in practice
A postpaid plan bills you after each month for the plan fee plus anything outside the allowance. Before selling a postpaid plan with a minimum term longer than one month, the provider must assess whether you can afford it, and for a new residential customer whose minimum total cost is over $1,000 that includes a check with a credit reporting body. Moneysmart warns that missed repayments or defaults can affect your credit report.
Postpaid plans must send free usage alerts at 50%, 85% and 100% of your included allowance, within 48 hours of each threshold. Most postpaid SIM-only plans are month-to-month, so you can leave with a month's notice or a port. A phone on a plan is different: the ACCC says if the handset is on a longer term than the service, you will have to pay off the handset balance before you leave.
Which suits you?
A rough guide, not a rule:
- Light users, and anyone wanting a hard cap on spending: prepaid, possibly long expiry.
- Heavy data users who want the largest allowances and extras such as data sharing: postpaid, usually month-to-month.
- Families with several services: postpaid plans often allow data sharing or multi-service discounts, and some prepaid brands sell shared-data family plans (ALDI Mobile, for example); compare the total against separate services.
- People who want a new phone without paying upfront: postpaid with device repayments, knowing the balance is due if you leave early.
- People with a poor credit history: prepaid avoids the credit check.
- Frequent travellers: compare roaming packs, which exist on both, and check the roaming rules.
Switching between prepaid and postpaid
You can move a number either way, including between providers. When you port a number, the new provider validates the request against your old account: under the industry's Mobile Number Portability Code, a matching account number validates a postpaid service, and a matching date of birth validates a prepaid one. Before the port proceeds, the new provider must also confirm you control the number, usually with a one-time code by SMS.
Moving from postpaid to prepaid within the same provider counts as a high-risk transaction under the ACMA's customer identity authentication rules, so expect multi-factor authentication. See switching and keeping your number.
Protections that apply to both
Financial hardship rules apply whether you are prepaid or postpaid. Under the Telecommunications (Financial Hardship) Industry Standard 2024, in force since 29 March 2024, every provider must publish a payment assistance policy, offer at least six kinds of assistance, and treat disconnection as a last resort. If a complaint to your provider is not resolved, the Telecommunications Industry Ombudsman handles it for free.
General information only. We don't compare every provider or plan in the market, and we may earn a commission if you sign up through our links.
What to watch for
- 28-day plans: multiply by 13 for the yearly cost.
- Prepaid data usually expires at the end of the period unless the plan says it rolls over.
- Automatic recharge on prepaid: convenient, but check the card it charges and the date.
- Postpaid device repayments stay payable if you leave early.
- Introductory postpaid discounts that end after six or twelve months.
Common questions
What is the difference between prepaid and postpaid?
Prepaid is paid in advance for a set period and has no bill or credit check. Postpaid is billed after each month and may include a credit assessment, larger allowances and phone repayments.
Is prepaid cheaper than postpaid?
Not as a rule. Compare the yearly cost at the same data allowance: 13 recharges for a 28-day plan, 12 for a monthly plan, one for a 365-day plan, and the price after any introductory discount ends.
Do prepaid plans need ID?
Yes. By law a provider must check your identity before activating a prepaid mobile service. The ACMA says you need to give your name, date of birth and home address, and the provider verifies them, for example with a driver's licence, passport or Medicare card check or a Digital ID.
Is there a credit check for postpaid mobile plans?
For plans with a minimum term over one month, the provider must assess whether you can afford the service. For new residential customers whose minimum total cost is over $1,000, that includes a check with a credit reporting body.
Can I switch from prepaid to postpaid and keep my number?
Yes. The new provider ports your number; for a prepaid service it is validated with your date of birth, and the new provider must confirm you control the number, usually with a one-time code.
Is ALDI Mobile Telstra or Optus?
Telstra. ALDI Mobile says it uses the Telstra Wholesale Mobile Network, the part of Telstra's network that Telstra sells to other brands. See providers that use the Telstra network.
What is the Aldi $10 mobile plan?
ALDI Mobile doesn't sell a $10 plan now. Its Mobile Plans Critical Information Summary, last updated 30 September 2026, lists 30-day plans from $28 (12GB) to $59 (175GB) and a $289 plan for 365 days; the only $10 item is a 1GB data top-up. Its FAQ refers to a legacy $10 Mobile Plan, an older product that isn't on sale. See 365-day prepaid plans for ALDI's long-expiry plan.
What is the downside of a prepaid phone plan?
You usually can't spread a phone's cost over repayments, unused data expires at the end of the period unless the plan rolls it over or banks it, and you need to recharge before expiry to keep your allowance. In return you get no bill, no credit check and a hard spending limit.
Why is amaysim so cheap?
amaysim is a reseller: it says its plans run on the Optus network, so it buys access to Optus's towers rather than building its own. That reseller model is how many brands sell plans on the same three networks as the operators. We can't speak to amaysim's own costs; compare its plans on data, speed caps and yearly cost like any other.
What is a long-expiry prepaid plan?
A prepaid plan where one recharge lasts a long period, such as 180 or 365 days. They suit light users who mostly call and text. Check whether the data is a single pool for the whole period or a monthly allowance.