Compare SIM-only prepaid plans

A SIM-only plan allows customers to pay for the just the usage of their phone (calls and text, as well as data), instead of the usage and device. If you own your device outright, you may be able to save money on your phone plan repayments by opting for a SIM-only option. 

 Prepaid SIM-only plans allow customers to pay for your mobile services upfront. This is typically done in one of three ways:

1. Month-to-month plans – You may be offered a data allowance to use over a 28-30 day expiry period. Typically includes unlimited calls and texts, depending on the provider.
2. Long expiry plans – Pay upfront for a longer period, anywhere from 90 days to 12 months. Typically includes unlimited calls and texts, depending on the provider.
3. PAYG plans – Pay for what you use (calls, texts and data) and then recharge your credit as you need. A call, text and data limit is generally in place (generally no unlimited calls and texts) as your service usage comes out of your credit. 

Month-to-month plans are generally the most commonly used prepaid SIM plans, as long-expiry and PAYG plans tend to suit those who infrequently use their mobile phone. 

• Affordability

Arguably the biggest benefit of a SIM-only prepaid plan is that it is generally more affordable than your standard mobile plan as you are not paying off the cost of the device. If a customer wanted to purchase a new iPhone through a provider, they would have to repay the cost of the device and pay for the mobile services, typically over 12-24 months on a locked-in contact. 

SIM-only prepaid plans save customers money by only charging them for the mobile services they use, such as 50GB for $55 a month on a SIM-only prepaid plan versus 50GB and device repayments at $150 a month on a 12-month mobile plan.

• Flexibility

SIM-only prepaid plans also offer greater flexibility to their customers as they are not locked into a lengthy contract. If you find a more competitive plan out there, you can simply just make the switch. You may want to wait for your prepaid period to end to make the most of your money, but there is generally no contractual obligation to do so.

• Features

Some providers, also offer SIM-only plan customers the option to roll data that you do not use over to your next billing period. This may be helpful for customers to ensure they’re getting the best value for their dollar by not wasting the data they pay for. Providers like Telstra may also allow customers to data share across multiple services on the same account. This can be an ideal feature for families or larger households.

• No credit check

Generally speaking, phone providers will perform a credit check in Australia when you want to sign a contract for a new device. This helps the provider to ensure you are not a risky customer and are likely to repay the device.

SIM-only prepaid plans generally do not require credit checks for customers, making it an ideal option for young Australians with little or no credit history, or those with poor credit scores. Further, if the unexpected happens such as a job loss, you don’t run the risk of hurting your credit score if you cannot make repayments. 

The provider may still request an ID check, meaning you may be requested to provide your name, date of birth and home/business address. 

Upfront cost

If you do not yet own a device outright and you’re considering a SIM-only prepaid plan, you’ll find the upfront expense is greater than if you opted for a mobile plan. With many devices costing between several hundred to thousands of dollars, you may need to factor this into your budget if you’re opting for a SIM-only prepaid plan to save money.

Upgrading costs

If your current device model becomes outdated and you’re interested in getting your hands on the latest technology, you’ll also need to factor in the cost of upgrading if you’re not on a mobile plan. While this may not apply to customers who are not as tech-obsessed, it’s important to factor into your budget if you love regularly upgrading your device.

Charges

Some SIM-only prepaid plans may charge customers for excess data or call charges, so it’s best to compare your options and read the product disclosure statement (PDS) before applying.

Several providers in Australia may offer SIM-only prepaid phone plans, including month-to-month, long-expiry and PAYG plans, on a number of popular networks. 

To find your best SIM-only prepaid plan, it’s crucial that you compare your options against your financial situation and budget. You may want to compare:

• Advertised cost – The amount you will pay each billing period.
• Data allowance – Are you a big data user or a more casual internet scroller? The amount of data you need, generally the higher your prepaid plan amount will be.
• Network –The three main networks for mobile in Australia are the Telstra network, the Optus network, and the Vodafone network. Depending on your location and your needs, you may have a network preference. For example, some regional areas may be better serviced by the Telstra network.
• Calls and texts – Most prepaid SIM-only plans will offer unlimited calls and texts to customers, except for PAYG plans. It may be worth checking and comparing the number of calls and texts offered to you.
• Features – Some providers may offer data rollover or data sharing across multiple accounts.