Renovating a home in Australia involves various costs that fluctuate based on the scope of work, materials used, and geographic location. Understanding these fees is essential for planning and budgeting your renovation project effectively. This article breaks down the expenditure associated with different types of renovations, average costs per room, pre-renovation expenses, major cost categories, hidden costs, additional expenses, and tips for saving money on your renovation project. Read on to learn all about what costs are involved in renovating a house.

How Much Does a Home Renovation Cost in Australia?

Renovating a home in Australia can cost between $20,000 and over $500,000. The total expense depends on several factors, including the extent of the renovation, the home’s size, and the specific tasks involved. For instance, a minor renovation might include simple tasks like painting and replacing fixtures, while a major renovation could involve structural changes, reconfiguring layouts, and extensive electrical and plumbing work.

What Are the Average Home Renovation Rates Per Room?

Understanding the costs of renovating specific rooms can help you plan your budget more effectively. Here are the average fees for different rooms in a house:

Kitchen Costs

The rate for renovating a kitchen typically lays between $20,000 and $50,000. This includes new cabinetry, bench tops, appliances, tiling, and necessary electrical and plumbing modifications. Kitchen renovations are often the most expensive due to the extensive work and materials.

Bathroom Expenses

Bathroom renovations can cost from $15,000 to over $30,000. This involves stripping out old fixtures, installing new tiles, plumbing, and new fixtures like showers, toilets, and vanities. Bathrooms require specialised contractors, which can drive up costs.

Living Rooms Rate

Renovating a living room usually costs between $10,000 and $20,000. Costs include removing walls to create open-plan spaces, new flooring, updated lighting, and painting.


Bedroom renovations can range from $2,000 for simple updates to over $35,000 for adding features like ensuites or walk-in wardrobes. Basic renovations may involve painting and new flooring, while more extensive updates include structural changes and custom storage solutions.

Extension Fees

The cost of adding extensions to a home varies depending on its size and complexity. Tiny houses may cost around $150,000 for minor extensions or refurbishments. Medium homes require $250,000 to $350,000 for significant extensions, while large homes could exceed $500,000.

Pre-Renovation Fees

Before starting any renovation work, several pre-renovation costs need to be considered:

Design and Planning: Hiring architects or designers to draft renovation plans can incur significant costs. Professional planning ensures feasibility and compliance with local regulations.

Permits and Approvals: Renovation projects often require permits from local councils, which involve fees. Ensuring all necessary permits are in place is crucial to avoid legal issues.

Consultations and Inspections: Before the renovation, initial consultations with builders and property inspections are necessary to assess the home’s current state. These assessments help identify potential issues and refine the renovation plans.

Major Price Categories


Material costs can vary significantly based on the quality and type of materials chosen. High-end, custom-made materials will dramatically increase the budget compared to off-the-shelf options. For example, choosing granite or marble bench tops will be more expensive than using laminate. Selecting durable and cost-effective materials can help manage the overall budget.


Labour is a significant cost component in any renovation project. The labour cost varies depending on the trades required, such as plumbers, electricians, carpenters, and tilers. The complexity of the work and the geographic location also impact labour costs. Engaging experienced and licensed professionals ensures high-quality workmanship, but may come at a higher price.

Hidden and Unexpected Costs

Renovation projects often encounter hidden or unexpected costs that can impact the budget:

  • Structural Issues: Unforeseen structural problems, such as rotten timber or foundational issues, can arise during renovations. Addressing these issues can add significant costs.
  • Asbestos Removal: If asbestos is discovered during the renovation, safe removal by licensed professionals is mandatory and costly.
  • Delays and Price Increases: Project delays or rising material costs can increase overall expenses. Market fluctuations and supply chain issues can also affect the availability and price of materials.

Additional Costs

Other costs that may not be immediately obvious but can affect the renovation budget include:

  • Temporary Accommodation: Extensive renovations may require the homeowners to live elsewhere temporarily, adding to the overall cost.
  • Storage: Storing furniture and belongings during the renovation can incur additional costs.
  • Utilities: Increased utility bills during construction, such as higher electricity and water usage, should be considered.

Tips for Saving Money on Your Home Renovation Project

Managing renovation costs effectively is crucial for staying within budget. Here are some tips to save money:

  • Creating a Detailed Budget: Develop a comprehensive budget that includes all potential expenses and a buffer for unexpected costs. Track expenses regularly to avoid overspending.
  • Staged Renovations: Consider renovating one room at a time to reduce costs and make the project more manageable. This approach allows for better financial planning and less disruption.
  • DIY Where Possible: Consider doing the work yourself for non-specialised tasks, such as painting or installing shelves. DIY can significantly reduce labour costs.
  • Choosing Economical Materials: Opt for budget-friendly materials that do not compromise quality. For example, laminate bench tops instead of granite can save money while providing a stylish finish.
  • Avoiding Custom Work: Custom-made items can be expensive. Choose off-the-shelf solutions to keep costs down.

Final Checklist

Before commencing a renovation project, use this checklist to ensure you are fully prepared:

  • Set a Realistic Budget: Include all anticipated expenses and a contingency fund for unexpected costs.
  • Get Multiple Quotes: Obtain quotes from different builders and suppliers to compare prices and services.
  • Plan for the Unexpected: Be prepared for potential delays and additional costs that may arise during the renovation.
  • Ensure Proper Permits: Verify that all necessary permits and approvals are in place before starting work.
  • Consider Temporary Living Arrangements: Plan for temporary accommodation if the renovation is extensive.
  • Consult Professionals: Engage with architects, designers, and experienced builders to get expert advice and ensure a smooth renovation process.

Understanding the costs of renovating a home in Australia helps you plan and execute a successful project. Being well-informed allows you to budget effectively and avoid unexpected financial surprises, from room-specific costs to hidden expenses. With careful planning and professional guidance, you can achieve your dream home. When you come to the team at Renovate Construction, we want you to be happy with your decision to work with us. We will be exceedingly precise and transparent so that you know precisely what is included and what to expect during your renovation project. And remember that you are under absolutely no obligation to proceed. So, call Carl now on 0478 674 215, or email and let’s get cracking…