Chapters

For 1300 owners

Keep reading to learn about the costs of buying and owning a business 1300 number

For 1300 callers

Understand the costs associated with making calls to a 1300 number

How much does a 1300 number cost?

Let’s take a look at the majority of providers and explain how the costs work.

There are 3 main cost components that someone looking for a 1300 number for their business should consider.

1. The purchase price of the number
2. Monthly hosting/plan cost
3. Incoming call charges

1. The purchase price
There are many ways to buy a 1300 number for your business.

The majority of providers will offer 1300 numbers from a limited pool on their network. The cost of the 1300 number will either be included in the monthly plan cost, or will cost extra. Typically, 1300 costs are calculated based on the quality of the number (for example, a 1300 number that spells a word or has repeating digits will cost more to buy).

2. The monthly hosting fee
A 1300 number that isn’t connected to a plan (or ‘service’) is a bit like a mobile phone without a SIM. A 1300 number needs to be connected to a network so that calls can be received and diverted to your mobile or landline - this is called the ‘hosting’ fee.

Some providers will include routing features or other bonus elements (such as included call minutes) in the monthly hosting fee.

3. Incoming call charges
1300 number services are a diversion service, so the owner of the 1300 number will pay to receive a call that is diverted from the 1300 to their receiving phone number (unless, of course, you choose a 1300 number plan with $0 call rates).

The way that call charges are structured can vary greatly across providers. Typically you will see a variation on a model that is referred to as a “source/destination” charging model. This model has different rates based on:

• The geographic location of the caller
• The device used to make the call (landline or mobile)
• The device used to receive the call (landline or mobile)

1300 call rates are typically charged per minute, so if you receive a lot of phone calls you will get a high bill.

Other 1300 costs
There are two other costs to consider when buying a 1300 number.

• Setup fees
• Fees to switch features on/off

Most 1300 number plans have a one-time setup fee included in the first invoice. Typically this costs no more than $25 dollars although some providers will also charge a higher setup fee if you choose a complex routing structure (such as postcode-based routing).

1300 numbers also have a range of features from IVR, to voicemail, data reporting and analysis, diversion to multiple phone numbers, and many more. Some providers will charge extra to switch on these features, so it’s typically recommended to buy a 1300 number plan with all features included in the cost of the monhtly hosting fee.

1300 Smartnumber costs

1300 Smart numbers is an ACMA trademarked marketing term for a 1300 number that spells a word or has a memorable sequence of digits. Example of Smart numbers are 1300 NUMBER and 1300 987 654.

The Smartnumber database is the largest database of 1300 numbers currently available in Australia because it is not limited by carrier/provider. 1300 numbers bought directly from a provider (and not the ACMA) are usually already active on the provider’s network although they can also activate ACMA Smartnumber if required.

The only difference in the cost of a Smartnumber vs a normal 1300 number is that a Smartnumber has a government-mandated purchase price. The ACMA sets the purchase price of a 1300 Smartnumber which costs between $250 and $20,000.

Smartnumbers can be purchased directly from ACMA and attached to your 1300 service. Note that in this case the purchase price of the number is set by ACMA and not your 1300 service provider.

You search and buy a 1300 Smart number direct from the ACMA’s The Numbering System website, then you need to find a 1300 number service provider (like us at Communiqa) to activate your Smartnumber on the Australian network.

Who pays for a 1300 call?

There are two completely separate cost components charged for a 1300 call.

• Charges levied to the caller by their own phone provider
• Charges levied to the owner (or receiver) of the 1300 number call

The cost to the owner of the 1300 number to receive the call is determined by the 1300 plan that the number is connected to. The section below has more detail on this.

As the caller is charged by their own phone provider, the specific 1300 number plan a business is subscribed to has no bearing on the amount that will be charged to the caller. The cost to dial a 1300 number is either included in the caller’s phone plan at no additional cost, or is charged at a capped rate of around 25-40 cents. See here for more detail on caller costs.

How are 1300 call costs calculated?

The cost to receive a call made to a 1300 Number varies based on your specific plan and provider.

The majority of providers will charge a per-minute rate for calls received on your 1300 number and is different for each type of call received. This is called a “source/destination” charging model.

This model has different rates based on:

• The geographic location of the caller
• The phone type of the caller (landline or mobile)
• The phone type of the receiver (you)

In addition to this the cost of the call may vary based on:

• Peak/off peak times
• Flagfall or connection costs
• Additional features that incur a higher per minute charge

All of these costs are determined by the particular 1300 number provider and plan, so check these details when comparing plans and call rates. Or simply choose a Communiqa 1300 number plan with $0 call rates and all features included free of charge.

Hidden fees on 1300 numbers

Some providers also charge ‘hidden’ fees that are buried deep in their extensive documentation. You might be charged to turn 1300 number features on and off, to change your routing (or answerpoint), for any support enquiries, fees when you cancel or port your 1300 number, and any number of other fees and charges.

Here’s what the Telecommunications Industry Ombudsman has to say about hidden 1300 number plan fees.

You should check the Critical Information Summary (“CIS”) for your plan to confirm what all the charges are (note that some providers will have links within their CIS to additional fees and services rather than laying out those fees within the CIS).

How to compare 1300 number plans

It can be tricky to compare 1300 number plans as there are many service providers in Australia and they all charge a little differently. The best way to compare the different 1300 plans is to read the Critical Information Summary (also referred to as a “CIS”).

The CIS was designed specifically to eliminate consumer confusion between 1300 number plans by making it easier to compare all the available options. Every telco is required by law to provide a Critical Information Summary, and they all must include the same information in a prescribed format (or layout).

1300 costs to consider

You should consider the following costs and service conditions when comparing 1300 number plans.

• How much is the monthly hosting fee (i.e. the monthly plan or management fee to host the 1300 number)?
• What are the 1300 call rates?
• How are the 1300 call rates charged? Call costs will be higher if the provider charges call rates in ten-second increments, so look for a 1300 plan that charges in per-second increments. Or better still, get a 1300 number plan with $0 call rates!
• How much is the setup fee? You really shouldn't pay more than $25 for a 1300 number setup fee.
• How much does it cost if you need to change the configuration of your 1300 number?
• If there is a contract term or a minimum commitment, what is the penalty fee or contract buy-out fee?
• Can you make changes to your 1300 number setup free of charge via an online portal?
• Are there any cancellation fees if you no longer need the 1300 number or want to port it away to another provider?
• What card processing fees are charged if you pay via debit or credit card?
• If your payment is declined for any reason, will you be charged any dishonour or account admin fees?

Lastly, you might come across included value 1300 number plans, or plans with capped call rates. How do you compare 1300 number plans that do or don’t offer this? We explain more on this in the next section.

Learn more about how to get a 1300 number here.

How 1300 call costs work

The cost for a caller to dial a 1300 number is determined entirely by the specific phone plan that you are connected to. The charge does not fluctuate for you to make a call to different 1300 numbers - it should be the same across the board.

Generally we find that with the widespread use of all-included mobile phone plans, the cost to call is free for most callers.

The owner of a 1300 number may be charged different rates based on where you are calling from. But again this depends on the specific plan that the 1300 number is connected to, and won’t impact the amount the caller is charged to make the call in any way.

How are 1300 call costs calculated for the caller?

The person making a call to a 1300 number is charged a flat-rate from anywhere in Australia. The cost is capped typically at around 25 cents, though this may vary (for example one of Telstra’s cheapest phone plans charges calls to a 1300 number at 40 cents).

If you are dialling an Australia 1300 number from overseas, the rates will vary based on your overseas provider. You may be charged for an international call (or higher), and the call may not be a flat-rate call.

How much will the caller be charged?

The cost of making a call to a 1300 number is determined by the caller’s own phone plan with their provider.

As a general principle:

• Call are charged at a flat rate per call (not per minute)
• The rate is typically 25-40 cents per call (approximately)
• The rate doesn't vary based on geographic location

Also with the prevalence of “all included” phone plans, we find that the majority of callers do not experience any charges to call a 1300 number.

1300 vs 1800 number call costs

The cost to the caller when making calls to a 1800 number should be free. In 2020, the majority of providers also include calls to 1300 numbers in their plans at no extra cost - though this varies across providers and plans.

How can I find out more?

The first place to start is by getting in touch with your current phone provider. You may be able to find this information in the Critical Information Summary (CIS) that you received when you started your service. Alternatively the information might be availble on their website.