23 Smart Ways to Save Money in Australia – Complete Guide for Budget Backpackers

Australia is a dream destination for many, with its stunning landscapes, unique wildlife, and vibrant cities. However, it’s also known for one thing that can quickly dampen the excitement of budget travelers: it’s expensive. Whether you’re staying for a few weeks or several months, you might find that your wallet gets thinner with every passing day. But, worry not! There are plenty of ways to enjoy Australia without breaking the bank.

In this guide, I’ll share 23 brilliant ways to stretch your dollar, from accommodation hacks to food tips, ensuring you don’t compromise on your experience while traveling on a budget.


Save on Accommodation

Accommodation costs can silently drain your savings. A few dollars here, a few dollars there, and by the end of the month, you’ve spent a small fortune just on where to sleep. Here’s how you can keep those costs in check:

1. Rent a Room

If you’re staying in one place for more than a couple of weeks, renting a room can be much more affordable than staying in a hostel. Hostels, while social and convenient, can quickly add up in cost, especially in popular cities like Sydney or Melbourne. By renting a room, not only do you save money, but you also get your own private space. Gumtree and Facebook groups are great platforms to find rooms at decent prices. Additionally, renting a room in someone’s home gives you the chance to connect with locals and get insider tips on the best spots to explore.

It’s worth noting that the longer you stay in one place, the easier it becomes to negotiate better rates for rent. Many landlords or subletters prefer longer-term tenants, so don’t be afraid to ask for a discount if you’re staying for more than a month.

2. Ask for Long-Stay Discounts

If renting a room isn’t an option or you prefer the hostel vibe, ask for long-stay discounts. Many hostels offer deals like “stay 7 nights, pay for 5” or discounted weekly rates. Not all hostels advertise these deals upfront, so it’s always worth asking at the front desk. This simple question could save you a significant chunk of change over the course of your stay.

Hostel owners often appreciate having consistent guests rather than a revolving door of new ones. By offering long-stay discounts, they guarantee themselves a full room for an extended period. This is particularly useful during off-peak seasons when occupancy may be lower.

3. Work for Accommodation

If you’re planning on staying somewhere for a while, why not trade a few hours of your time for free accommodation? Many hostels offer work-exchange programs where you can clean, make beds, or help with reception in exchange for a free bed. It’s a great way to save money while also making new friends and learning about the area. Plus, it leaves you with extra cash to spend on experiences rather than on where you sleep.

This arrangement can also open doors to other opportunities, like paid work or gaining new skills. Working in a hostel can help you meet fellow travelers, some of whom might have tips for other job opportunities, travel hacks, or even offer you a lift to your next destination.

4. Use Free Campsites

If you’re road-tripping around Australia in a campervan or car, free campsites are your best friend. The Wikicamps app is an essential download for this, offering up-to-date information on free camping spots across the country. Many of these campsites are in stunning, remote locations, offering beautiful views and a peaceful environment without the hefty price tag of paid campsites.

Some free campsites are located near national parks, making them perfect for early morning hikes or wildlife spotting. Be sure to check what facilities are available at each site – while some offer toilets and running water, others may be more basic, requiring you to be fully self-sufficient.

5. Couchsurfing and Staying with Friends

Couchsurfing isn’t just a way to get a free bed for the night – it’s about cultural exchange. When you stay with locals, you get insights and stories you wouldn’t hear otherwise. Couchsurfing hosts often show you around, introduce you to local spots, and sometimes even cook meals. This makes it a more enriching experience than simply crashing in a hostel. If you have friends in Australia, staying with them for a few nights can also give you a break from hostel dorms and help you save money.

Remember that Couchsurfing is a community built on trust and mutual respect. Always bring something small to show your gratitude – whether it’s cooking a meal, bringing a bottle of wine, or even sharing stories from your travels. These gestures go a long way in making your stay more enjoyable and ensuring you leave with new friends.

6. Check Out Roomertravel

Roomertravel is a platform where people resell their hotel bookings that they can’t use. This can be a goldmine for finding discounted stays, from hostel beds to luxury hotel rooms, at prices much lower than what you’d find on booking websites. It’s always worth checking Roomertravel if you’re heading to a new city and want to score a deal.

People who sell their rooms on Roomertravel are often in a bind and just want to recoup some of their money. That means you can find last-minute deals that would otherwise be unavailable. Plus, staying in a nicer hotel every now and then can be a welcome break from the hostel lifestyle.

7. Use Airbnb

If you’re traveling with a group, an Airbnb can be significantly cheaper than booking multiple hostel beds. Plus, you get the added benefit of privacy, and often a kitchen, which allows you to save even more by cooking your meals. Many Airbnbs also offer weekly or monthly discounts for longer stays, making them an excellent option for slow travelers or digital nomads.

Tip: Always check for cleaning fees and other hidden charges before booking, as these can sometimes make an Airbnb more expensive than it first appears.


Save on Transportation

Australia is a vast country, and getting around can be one of the biggest expenses. However, with a bit of creativity, you can cut down on transportation costs and still see all the incredible sights.

8. Hitchhike or Rideshare

Australia is one of the best countries for hitchhiking, thanks to its laid-back locals and extensive network of long highways. It’s common for backpackers to hitchhike between major cities or along popular routes like the East Coast. If hitchhiking isn’t your thing, ridesharing is another great option. Websites like Gumtree or rideshare groups on Facebook connect travelers heading in the same direction, allowing you to split fuel costs.

Insight: When ridesharing, always agree on fuel costs beforehand to avoid any misunderstandings. It’s also a great way to meet new people and share travel stories while you’re on the road.

9. Car Relocation

Car relocation services can be a win-win for travelers. Rental companies often need vehicles moved from one city to another, and instead of paying employees to do it, they let travelers drive the cars for free – sometimes even covering the cost of fuel. If you don’t mind traveling on a tight schedule, this can be an incredible way to get from point A to point B without spending a dime.

Some companies also offer free campervan relocations, allowing you to not only save on transportation but also on accommodation. Keep in mind that these relocations are often time-sensitive, so you may need to be flexible with your plans.

10. Rent with Jucy

Jucy is a lesser-known car rental company that often offers better rates than the big-name rental agencies. If you’re traveling with friends, renting a car through Jucy can be extremely cost-effective. Their rates start as low as $22 per day, and they don’t charge extra for younger drivers, making it a popular choice for backpackers.

Renting a car gives you the flexibility to explore Australia at your own pace. Whether you want to take the scenic coastal roads or venture into the outback, having your own set of wheels makes it easy to get off the beaten path.


Save on Food and Drink

Food and drink are daily expenses that can quickly add up, especially in Australia, where eating out is notoriously pricey. However, with a few smart choices, you can eat well without burning through your budget.

11. Homebrand Groceries

Both Woolworths and Coles, Australia’s major supermarket chains, offer home-brand products that are significantly cheaper than their branded counterparts. From pasta to canned beans, these products are just as good, if not better, for a fraction of the price.

Look out for markdowns on fresh produce towards the end of the day. Supermarkets often reduce prices on items like bread, fruit, and veggies that are nearing their expiration date, allowing you to snag great deals.

12. BOGTFEN Diet

This stands for Beans, Oats, Greens, Tuna, Fruit, Eggs, and Noodles. These are cheap, nutritious staples that you can easily find in any supermarket. Throw in some frozen veggies, peanut butter, and pancake mix, and you’ve got a balanced diet on a budget.

Analysis: These food items are not only cheap, but they’re also versatile, allowing you to make a variety of meals with minimal ingredients. For example, oats can be turned into overnight oats, pancakes, or a hearty breakfast, while noodles can be spiced up with different sauces or veggies.

13. Eat Vegetarian

Meat in Australia can be expensive, especially if you’re buying high-quality cuts. Going vegetarian, even just for a few meals a week, can significantly reduce your grocery bill. Plus, with Australia’s abundance of fresh produce, it’s easy to make delicious vegetarian meals.

If you’re not ready to give up meat entirely, consider sticking to the “$5 rule” – only buy meat if it costs less than $5 per portion. This encourages you to get creative with cheaper cuts or to seek out specials at your local supermarket.

14. Buy Only What You Need

Supermarkets often tempt you to buy more than you need by offering bulk deals or pre-packaged quantities. But instead of buying a whole pack of bacon, why not just buy one or two slices? Many supermarkets with fresh produce sections will let you buy small quantities of items like bacon, prawns, or cheese, helping you to avoid waste and save money.

Tip: Don’t be afraid to ask for exactly what you want, even if it feels awkward. Buying only what you need means you’re not overspending on food that you may not even finish.

15. Cook Together

One of the best ways to save money on food is to cook with your hostel mates. By pooling resources, you can make larger, more elaborate meals for less. Plus, cooking together is a fun social activity that often leads to long conversations and new friendships.

Not only does this save money, but it also reduces food waste. When everyone contributes ingredients, you can make sure nothing goes to waste and that every dollar is stretched as far as possible. It’s also a great opportunity to share recipes and cooking tips from different countries.

16. Backpacker Meal Deals

Many hostels and backpacker bars offer meal deals for as little as $5. These meals might not be gourmet, but they’re filling and cheap, and they save you the hassle of cooking. Sometimes, it’s nice to let someone else do the cooking for you, especially after a long day of exploring.

Backpacker meal deals are often served in social settings, giving you a chance to meet other travelers while enjoying a cheap meal. These deals are particularly popular in cities like Sydney and Melbourne, where dining out can be prohibitively expensive.

17. Drink GOON

Goon is the infamous boxed wine that has become a staple for budget travelers in Australia. It’s not known for its quality, but it gets the job done. At just a few dollars for a large box, goon is one of the cheapest ways to have a drink with friends.

Cultural Insight: Goon is more than just a cheap drink – it’s a rite of passage for backpackers in Australia. From goon-fueled parties to making friends over a shared box of wine, it’s a staple in the Australian backpacker scene.


Save on Tours & Activities

Australia is full of incredible experiences, from snorkeling the Great Barrier Reef to exploring the Outback. While some tours can be pricey, there are plenty of ways to enjoy Australia’s natural beauty without spending a fortune.

18. Free Activities First

Before spending money on tours or excursions, see what you can do for free. Australia is packed with natural wonders that don’t cost a dime. Whether it’s hiking in a national park, relaxing on the beach, or exploring local markets, there’s plenty to do that won’t cost you a cent.

Some of the best experiences in Australia are completely free, like watching the sunset over Uluru or hiking the Blue Mountains. By prioritizing free activities, you can save your money for the experiences that truly require a paid guide or tour.

19. Bookme.com.au

Before booking any tours, check out Bookme.com.au. This website offers discounted tours and activities, often with savings of 30-50%. If you’re flexible with your schedule, you can snag some amazing deals on everything from Great Barrier Reef snorkeling tours to outback excursions.

Analysis: Flexibility is key when using Bookme. The best deals are often for tours at off-peak times or for last-minute bookings. If you’re willing to adjust your itinerary, you can save a lot of money on some of Australia’s most popular attractions.

20. Groupon

Groupon isn’t just for locals – travelers can also find fantastic deals on activities, dining, and even accommodation. Sign up for Groupon in major cities like Sydney or Melbourne and keep an eye out for deals on everything from spa days to outdoor adventures.

Groupon often partners with smaller, local businesses, giving you the chance to discover unique experiences that you might not find through traditional tour operators. Plus, the discounts can be substantial, making it a great way to treat yourself without overspending.


Miscellaneous Money-Saving Tips

Finally, here are a few extra tips to help you save money in Australia, from staying connected to doing laundry on the cheap.

21. Use Free Wi-Fi

Australia’s Wi-Fi situation isn’t the best, but there are still plenty of places where you can connect for free. McDonald’s, libraries, and many cafes offer free Wi-Fi, allowing you to save on data costs. If you’re a coffee lover, head to a cafe with free Wi-Fi and enjoy a coffee while you catch up on emails or plan your next adventure.

Some hostels charge for Wi-Fi, especially in more remote areas. Instead of paying, take advantage of free Wi-Fi hotspots in the city. If you’re in need of reliable internet for work or calls, libraries are often the best option, as they tend to have faster, more reliable connections than cafes.

22. Hand-Wash Your Clothes

Doing laundry at a hostel can cost upwards of $4 per load, which adds up if you’re doing it frequently. To save money, wash smaller items like underwear and socks by hand while you’re in the shower. Hang them to dry on your hostel bed, and you’ll extend the time between full laundry loads.

Not only does this save money, but it also allows you to keep a smaller wardrobe, which is helpful when traveling with limited luggage. By washing clothes more frequently, you can pack fewer items, reducing the weight and bulk of your backpack.

23. Transfer Money with Wise

If you need to transfer money between your home country and Australia, Wise (formerly TransferWise) is a much cheaper option than traditional banks. With lower fees and better exchange rates, you can save hundreds of dollars on international transfers.

Wise’s transparent fee structure means you know exactly how much you’re paying upfront, and the savings can be substantial, especially for larger transfers. For long-term travelers or digital nomads who frequently move money between accounts, this can make a big difference over time.

Bonus Tip: Op Shops for Budget Clothing

In Australia, it’s totally normal to buy clothes from second-hand stores, also known as “op shops.” These shops are filled with hidden treasures, from vintage dresses to practical items like swimwear and hiking gear. Not only will you save money, but you’ll also find unique items that you wouldn’t find in regular stores.

Op shops are also great for books, accessories, and even household items. If you’re staying in one place for a while and need to furnish your temporary home, op shops can provide inexpensive items like kitchenware, bedding, and even bicycles.

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