How to Budget for a Home Renovation in Australia

Renovating your home in Australia can be exciting, but the financial side can feel confusing. How much should you really allow? What about hidden costs? And how do you stop a “small update” from turning into a budget blowout? A clear renovation budget helps you decide what’s possible, where to spend more, and where to save. 

In this blog, we’ll walk through realistic renovation costs in Australia, the extra expenses many people forget, and simple planning tips to keep your project under control from start to finish.

6 Simple ways to budget for your home renovation in Australia

A good renovation budget doesn’t start with numbers – it starts with clarity. Once you’re clear on what you want and what you can spend, the money side becomes much easier to manage.

1. Start with your big goals, not the shopping list

Before you think about tiles or tapware, get clear on what you want your renovation to do for you.

Ask yourself:

• Are you trying to create more space, more light, or better flow?
• Is this mainly for comfort now, or also to add resale value later?
• Which rooms matter most to you and your family?

When you know your top priorities, it’s easier to direct your budget towards what really counts and avoid spending on things that don’t change your life much.

2. Decide how much you’re truly comfortable spending

Instead of asking “How much will it cost?”, start with “How much can I comfortably afford?”

Consider:

• Your savings and how much you’re willing to use.
• Whether you’ll use a loan or redraw on your mortgage.
• How much of a repayment increase are you happy with each month?

Set a total budget range (for example, “we’d like to stay around X, and must not go over Y”). It gives you a clear line in the sand before quotes arrive.

3. Get rough cost ranges early (don’t guess)

Renovation costs in Australia vary a lot depending on location, size, and finishes. Rather than guessing, talk to a renovation consultant, designer, or builder early to get rough ballpark figures for:

• A basic bathroom vs a higher-end one.
• A simple kitchen update vs a full layout change.
• A small extension vs a larger one.

You don’t need perfect numbers at the start, but early cost ranges help you see whether your wish list matches your budget and what might need to be scaled up or down.

4. Break your budget into clear parts

A single “big number” can feel vague. It’s easier to manage when you break your budget into parts, such as:

• Design and planning – drawings, concept design, engineering, consents.
• Construction – labour for builders and trades.
• Materials – fixtures, fittings, finishes, cabinetry, appliances.
• Professional fees – approvals, surveys, inspections where needed.

Separating these helps you see where most of your money is going and where you have room to adjust.

5. Watch out for common hidden and forgotten costs

Many budget blowouts happen because of things you didn’t plan for. When you build your renovation budget in Australia, remember to allow for:

• Council fees and approvals – building permits, applications, inspections.
• Temporary living costs – short-term rent or storage if you need to move out.
• Repairs to old or hidden issues – old wiring, rotten timber, asbestos, or drainage problems discovered during demolition.
• Site costs – access issues, scaffolding, rubbish removal, skip bins.
• Upgrades to services – electrical board upgrades, extra power points, plumbing changes.
• Landscaping and external tidy-up – driveways, paths, fencing, or garden repairs after the build.

Adding a contingency line to your budget (often 10–15% of the total) provides a safety net against these surprises.

6. Be honest about your finish level: basic, mid-range, or high-end

Your choice of finishes has a huge impact on cost. For each room or area, decide whether you’re aiming for:

• Budget/basic – simple, durable finishes, standard fixtures, practical over pretty.
• Mid-range – a balance of quality and cost, with a few feature items.
• High-end – premium materials, designer fixtures, and custom details.

You can mix levels in the same project: for example, choose mid-range in most areas and invest more in a hero kitchen benchtop or statement bathroom tiles. This lets you keep control without feeling like you’re “cutting corners” everywhere.

Plan your renovation budget with confidence

At Refresh Renovations Australia, we help you plan your renovation budget from the very beginning. We walk you through costs, suggest options that fit your price range, allow for contingencies, and keep you updated as the project moves forward. Our goal is simple: a renovation that looks great, works for your lifestyle, and stays as close to your agreed budget as possible.

If you’re ready to start your project and want clear, honest guidance on your renovation budget in Australia, get in touch with Refresh AU.  We’ll help you turn your ideas into a realistic plan, with numbers that make sense.