A bathroom renovation can quickly spiral into a budget nightmare if you’re not prepared. Too many homeowners start their remodels with a rough estimate, only to end up with ballooning costs, hidden fees, and unexpected repairs. But here’s the truth: you can have a stunning, functional bathroom without overspending—if you plan strategically.

According to recent data, Australian homeowners spend an average of $19,500–$27,000 on a standard bathroom renovation, with high-end remodels exceeding $40,000. One of the biggest mistakes is underestimating costs, leading to incomplete projects or financial strain. In fact, 45% of Australian homeowners exceed their renovation budget, primarily due to design changes, unforeseen repairs, and rising material costs.

This guide will expose the real cost factors, hidden expenses, and pro-level budgeting tricks to help you get the best value for every dollar spent on your bathroom renovation.

The True Costs of a Bathroom Renovation (and How to Avoid Surprises)

1. Labour Costs – The Biggest Slice of Your Budget

Labour costs can eat up 40-50% of your budget. Here’s what you can expect:

• Plumbers: $80–$150 per hour
• Electricians: $70–$130 per hour
• Tilers: $40–$120 per square metre
• Carpenters: $50–$120 per hour
• General contractors: $15,000–$30,000 (for a complete renovation)

Tip: If you’re looking to save, keep plumbing and electrical layouts unchanged. Moving pipes and wiring can cost thousands more.

2. Materials – The Luxe vs. Budget Dilemma

Your choice of materials will make or break your budget. Here’s what you need to know:

• Tiles:
  • Ceramic: $30–$80 per square metre (affordable, durable)
  • Porcelain: $50–$120 per square metre (premium, water-resistant)
  • Natural stone: $80–$200 per square metre (luxury, requires sealing)
• Vanities: $300–$3,000 (standard vs. custom-built)
• Shower screens: $500–$2,000
• Bathtubs: $800–$5,000
• Eco-friendly fixtures (water-saving taps, LED lighting): $300–$1,500

Tip: Buy tiles and fixtures during seasonal sales to save up to 30%.

3. Permits and Compliance – The Hidden Costs No One Talks About

If your renovation involves structural changes, be prepared for additional fees:

• Building permits: $500–$2,000
• Waterproofing certification: $300–$800
• Plumbing compliance checks: $200–$600

Tip: Work with licensed professionals to avoid fines and compliance issues later.

4. Unexpected Costs – The Financial Sinkhole

Even the best-planned renovations run into surprise costs, such as:

• Water damage repairs: $500–$3,000
• Plumbing upgrades: $1,000–$5,000
• Mould treatment: $300–$1,500
• Structural reinforcements: $2,000–$7,000
• Unforeseen demolition costs: $500–$2,000

Tip: Always set aside 10-20% of your total budget for unexpected expenses.

DIY vs. Professional Renovation: Cost Comparison

Cost Comparison Table for Bathroom Renovations

Additional Cost-Saving Strategies

• Repurpose existing features – Refinishing your bathtub or vanity can save thousands.
• Buy from wholesalers – Direct suppliers often offer lower prices than retail stores.
• Use large-format tiles – They reduce installation time and grout lines, cutting labour costs.
• Avoid trend-driven designs – Classic styles remain in demand longer and add more value.
• Install dual-flush toilets – These can save money on water bills in the long run.
• Shop at auctions or clearance sales – Many suppliers offer heavily discounted materials.
• Do partial renovations – Instead of gutting the entire bathroom, upgrade only the most outdated features.

Choosing the Right Contractor

Selecting a reputable contractor is crucial to staying on budget and ensuring quality workmanship. A poorly chosen contractor can lead to delays, cost overruns, and subpar results. Here’s what to look for when hiring a bathroom renovation professional:

• Check Licensing and Insurance – Ensure the contractor is licensed to work in your state and carries insurance to cover any potential damages or liabilities. A reputable contractor will have no issue providing proof of credentials.
• Verify Experience in Bathroom Renovations – Not all builders specialise in bathrooms. Look for professionals with a proven track record in plumbing, waterproofing, tiling, and cabinetry installations.
• Read Online Reviews and Ask for References – Customer feedback on platforms like Google Reviews, Houzz, and Facebook can provide valuable insights. Additionally, ask for references and speak with past clients about their experience with the contractor.
• Get at Least Three Quotes – Comparing multiple quotes helps you gauge fair pricing and avoid overpaying. Be wary of unusually low quotes, as they may indicate substandard materials or hidden fees.
• Ask for a Detailed Contract – Ensure the contract outlines all costs, the scope of work, payment schedules, estimated completion dates, and warranty details. A well-documented agreement prevents misunderstandings and disputes.
• Discuss Timelines and Project Management – Understand how the contractor plans to manage the project, including how they handle unexpected delays or changes in scope. Reliable contractors maintain transparent communication throughout the renovation.
• Inquire About Material Sourcing – Some contractors have partnerships with suppliers that can result in cost savings on fixtures and fittings. Ask if they offer any discounts or preferred pricing.
• Assess Their Customer Service – A good contractor should be responsive, willing to answer questions, and offer clear explanations about the renovation process. Poor communication can lead to unnecessary frustration.

Hiring the right contractor can make a significant difference in your renovation experience. Taking the time to research and vet professionals will help ensure that your bathroom renovation stays on schedule, within budget, and meets your expectations. Selecting a reputable contractor is crucial to staying on budget. Here’s what to look for:

• Check their licensing and insurance – Ensure they meet Australian standards.
• Read online reviews – Look at customer feedback and ratings.
• Get at least three quotes – Comparing prices helps you find the best deal.
• Ask for a detailed contract – This should outline costs, timelines, and warranties.

Renovation Timeline: How Long Does It Take?

Make Smart Financial Decisions

A bathroom renovation doesn’t have to drain your bank account. By following these budgeting steps, you can ensure a stress-free and cost-effective renovation while achieving a modern, functional, and stylish space.

By taking a strategic approach and considering cost-saving alternatives, you can successfully renovate your bathroom without financial stress.