How Much Do Business Phone Systems Cost? A Guide for Small Businesses in Australia

Understanding Phone System Cost for Small Businesses

Let’s be honest. For many small businesses, cost is one of the biggest reasons to delay switching to a modern phone system. But the truth is, you don’t need to spend a fortune to get a flexible, scalable, and professional setup that fits your business needs.

This guide breaks down what affects business phone systems cost, how to budget based on your setup, and what kind of return you can expect from investing in the right solution.

If you’re ready to price your options, you can get a phone system quote.

Types of Business Phone Systems and What They Mean for Cost

Your phone system is more than just a handset on a desk. The type of phone system you choose will directly impact your cost structure.

VoIP Phone Systems

Voice over Internet Protocol (VoIP) sends calls over your internet connection rather than traditional phone lines. It’s cost-effective, scalable, and ideal for remote work.

Hosted PBX

A hosted PBX system lives in the cloud. It gives you all the features of a traditional PBX setup without the hardware. These cloud-based solutions suit growing businesses that want flexibility without the capital expense.

SIP or Hybrid PBX

SIP systems connect your existing PBX to the internet. This setup can reduce call charges while keeping your legacy infrastructure. It’s a solid choice for small and medium businesses with existing pbx systems.

You can explore more about selecting the right phone system.

What’s Included in a Small Business Phone System?

A modern small business phone system goes well beyond basic office phone lines. Typical inclusions:

• Voicemail to email
• Call routing and auto-attendant
• Conference calling
• Handsets or soft phones
• Mobile apps for remote access
• CRM or Microsoft Teams integration
• High call quality
• Compatibility with laptops, tablets, and mobile phones

You’ll also want to consider future needs. For example, if you’re planning to grow, you might need additional phone lines, support for international calls, or more extensions per user.

Phone System Cost by Business Type

We’ve created a basic guide to budget ranges depending on your business setup. Remember, these aren’t fixed prices, they’re ballpark figures to help you plan.

Business Type	System Type	Monthly Cost Range	Key Setup Needs
Home-based business	VoIP Basic	$15–$40 per user	Use existing devices, softphones
Small team (5–20 users)	Hosted PBX	$30–$70 per user	Handsets, LAN switch
Multi-site or hybrid team	SIP / Hybrid PBX	$50+ per user	Onsite router, PBX box

For home-based businesses, it’s worth reviewing this business planning guide.

Hosted PBX Systems vs On-Premise PBX

With a hosted PBX phone system, your provider handles updates, security, and scalability. There’s no need for expensive equipment or on-site staff.

In contrast, traditional on-premise PBX solutions require installation, setup costs, and ongoing maintenance. This increases the total costs associated with setup, something many Australian businesses aim to avoid.

Buying vs Leasing: What’s Better?

Phone system costs can be managed better when you choose the right model. Leasing equipment lowers your setup costs and keeps your tech up to date. Buying, while more expensive upfront, can save over time.

Still unsure? The Moneysmart budget planner is a good way to model your decision based on your current needs and budget.

What Hidden Costs Should You Watch For?

Hidden costs can derail your budgeting process. Be mindful of:

• Additional charges for installation
• Higher rates for international numbers
• Fees for voicemail or call quality improvements
• Licensing costs for integrations or extra features

You also need to meet basic telecom obligations. The ACMA’s phone system user compliance has more info for small and existing phone system users.

System Flexibility and Cost Comparison 

Below is a quick look at how popular systems compare on flexibility and ongoing cost:

Per User Pricing Explained

Most modern systems price per user, not per line. This helps you scale easily, especially if you’re using a cloud-based phone system or softphone.

Some systems support BYO device policies, so you can reduce costs by using mobile phones or softphones instead of desk handsets. Others include bundled hardware or support for unified communications tools.

What Makes a Good Business Phone Plan?

When comparing systems, look for:

• Flexible phone system requirements
• Cloud-based options with call routing
• Integration with your internet connection
• Unlimited calls or capped usage
• Local and national and mobile coverage

Also consider reliability. Does your provider offer 4G backup, 24/7 support, or SLA guarantees?

New Phone Systems: Are They Worth the Upgrade?

If your current system is based on copper lines or a static PBX, it’s time to consider an upgrade. New phone systems offer:

• Better audio clarity
• Mobile integration
• Scalable features
• Lower long-term costs

Plus, they’re future-proofed for changes to the public switched telephone network and transitions to IP telephony.

Let’s Talk About Your Business Phone System

Every solution for your business is different. From choosing the right hardware to finding the ideal phone system hosted setup, it’s not just about budget. It’s about getting the right mix of features, flexibility, and support.

That’s why we recommend skipping generic advice and getting real answers. Talk to Norcom today, we’ll match you with a phone system that fits your team, goals, and future growth.