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How to Find Cheap Places to Stay: Australia Best Hostels (Budget Picks & Real Costs)

✎ RoamLight Editorial📅 2026-01-01⏰ 7 min read

Australia is a dream destination for budget travelers, boasting stunning beaches, iconic landmarks, and diverse cultures. However, navigating this vast country can be a bit overwhelming if you don’t have a game plan. One of the best ways to save money while meeting fellow adventurers is to stay in hostels. The best hostels in Australia not only provide a comfy bed but also foster a social atmosphere and are strategically located near must-see attractions. Let’s dive into the best options for budget accommodations across Australia, along with essential travel tips and local insights that can save you money.

What Are the Average Costs of Hostels in Australia?

Understanding the costs of staying in hostels can help you budget effectively. On average, you can expect to pay between AUD 25 to AUD 50 (USD 15 to USD 30) per night for a bed in a shared dorm. Prices vary based on the city, season, and the amenities offered. Here’s a quick breakdown:

Item Approx Cost Notes
Bed in a dorm (Sydney) AUD 39 (USD 24) Wake Up! Sydney, near Central Station
Bed in a dorm (Melbourne) AUD 35 (USD 21) United Backpackers, close to Flinders Lane
Bed in a dorm (Brisbane) AUD 30 (USD 18) YHA Brisbane City, has a rooftop pool
Private room (Gold Coast) AUD 80 (USD 50) Surfboards and beach access included
Breakfast AUD 10 (USD 6) Available at most hostels
Local public transport fare AUD 3.50 (USD 2.10) Single bus ride in Sydney
Greyhound bus (Sydney to Melbourne) AUD 75 (USD 45) Inexpensive way to travel between cities

Where to Find the Best Hostels in Sydney?

Sydney is not just known for its stunning harbor and beaches; it also hosts some of the best budget accommodations. One standout is Wake Up! Sydney. Located near Central Station, beds start at AUD 39 (USD 24) in shared dorms. This hostel has a lively bar, organized events, and is just a stone’s throw away from iconic sites like the Sydney Opera House and Circular Quay.

If you prefer a more laid-back vibe, Nomads Sydney is another great option. Prices start at AUD 35 (USD 21) per night, and it’s situated in a central location, making trips to the beach or city center easy.

What Are the Top Budget Hostels in Melbourne?

Melbourne is a hub for art, coffee, and culture, and it’s packed with budget-friendly hostels. United Backpackers, with dorm beds starting at AUD 35 (USD 21), is a fantastic choice. Located on Flinders Lane, it’s known for its friendly atmosphere and nightly activities. You can easily explore Federation Square and the vibrant laneways filled with street art and coffee shops from here.

Another great option is Backpackers Paradise, where beds are about AUD 30 (USD 18) per night. This hostel offers a cozy vibe and is perfect for those looking to meet fellow travelers over a game of pool.

What to Expect from Hostels in Brisbane?

Brisbane, the gateway to the Gold Coast, is another must-visit for budget travelers. The YHA Brisbane City is a top choice, offering dorm beds starting at AUD 30 (USD 18). This hostel features a rooftop pool with stunning views of the cityscape, ideal for unwinding after a day of exploration.

For a unique experience, check out Brisbane City Backpackers. Prices are comparable, and the hostel often organizes tours and activities that make it easier to explore the surrounding area.

How to Save on Food While Traveling in Australia?

Eating out in Australia can get pricey, especially in major cities. However, there are plenty of ways to eat well on a budget. Most hostels offer communal kitchens where you can prepare your meals. Groceries can be found at local supermarkets like Coles and Woolworths, where you can pick up essentials for under AUD 50 (USD 30) per week.

For those times when you want to eat out, look for local “pub meals,” which typically offer large servings at reasonable prices—around AUD 15 (USD 9) for a hearty meal. Also, many cities have food markets where you can grab affordable street food.

How to Get Around Australia on a Budget?

Transport can be a significant part of your budget, but there are budget-friendly options to explore Australia. Greyhound Australia offers a comprehensive coach network connecting major cities, with tickets from Sydney to Melbourne costing about AUD 75 (USD 45). To get around within cities, public transport is efficient. For example, using the Opal card in Sydney can get you around for just AUD 3.50 (USD 2.10) per bus ride.

If you're feeling adventurous, consider renting a campervan or a car, especially if you’re traveling with friends. Companies like Wicked Campers offer budget options starting at AUD 50 (USD 30) per day, giving you the flexibility to explore off-the-beaten-path destinations.

How much does it cost to stay in a hostel in Australia?

The average cost for a bed in a shared dorm ranges between AUD 25 to AUD 50 (USD 15 to USD 30) per night, depending on the city and the season.

What are the best hostels in Sydney for budget travelers?

Wake Up! Sydney and Nomads Sydney are two popular choices, with prices starting around AUD 35 (USD 21) to AUD 39 (USD 24) for dorms.

Are hostels safe in Australia?

Yes, hostels in Australia are generally safe, but it’s always wise to take standard precautions such as using lockers for valuables and being aware of your surroundings.

For a true local experience, join hostel-organized events like pub crawls or city tours. It’s a fantastic way to meet people and explore hidden gems!

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