You've decided custom software might be the answer. Now comes the question everyone asks: "How much is this going to cost?"
If you've been researching online, you've probably encountered the frustrating "it depends" response more times than you can count. While it's technically true that costs vary, that answer doesn't help you plan or budget. Let's change that with real numbers and transparent breakdowns.
Key Insight: Custom software in Australia typically ranges from $15,000 for a simple internal tool to $500,000+ for complex enterprise systems. The real question isn't "what does it cost"—it's "what are you actually buying?"
Why Australian Custom Software Costs What It Does
The Australian Development Market
Australian software developers typically charge between $100 and $250 per hour, depending on experience, location, and specialisation. This might seem expensive compared to offshore alternatives, but there are good reasons for the difference:
Quality and expertise: Australian developers generally have strong formal education and industry experience
Award wages and business costs: Australian labour laws, superannuation, insurance, and office costs are built into rates
Australian business understanding: Local developers understand GST, Australian privacy laws, and how Australian businesses operate
Communication and timezone: No language barriers, same business hours, face-to-face meetings possible
AI-Powered Development Changes the Math
Here's where things get interesting. AI-powered development tools are genuinely transforming how software is built, and responsible developers are passing those savings on to clients:
30-40% reduction in development time for routine coding tasks like form validation, database operations, and standard components
Better code consistency through AI-assisted code review and testing
Faster bug detection with automated testing and security analysis
More features for your budget because developers spend less time on repetitive tasks
The important thing to understand: AI doesn't replace developers. It makes them more productive. You still need human expertise for understanding your business, making architectural decisions, and solving complex problems.
The Four Main Cost Drivers
1Complexity & Features
A simple CRUD (Create, Read, Update, Delete) application costs far less than software with complex business logic, multiple user types, and advanced reporting.
Simple: A task tracker where team members log tasks and mark them complete
Complex: A full CRM with lead scoring, automated workflows, email integration, and advanced analytics
2Integration Requirements
Standalone systems are simpler than software that needs to connect to your existing tools. Each integration adds complexity, testing requirements, and development time.
Standalone: An internal tool that doesn't need to talk to anything else
Integrated: Software that syncs with Xero, sends SMS notifications, integrates with payment gateways, and connects to your existing database
3User Volume & Performance
Software for 5 internal users has different requirements than a customer-facing system serving hundreds or thousands of concurrent users.
Low volume: An internal tool for your team of 10 people
High volume: A customer portal where 500+ customers might log in simultaneously
4Custom vs Template Starting Point
Starting from a framework or template reduces costs compared to building everything from scratch. However, truly bespoke design and functionality costs more.
Framework-based: Using established frameworks (React, Next.js) with standard UI patterns
Completely bespoke: Custom-designed interface with unique interactions
Real-World Price Ranges
Simple Internal Tools
$15,000 - $40,000
Examples:
- • Task and time tracking system
- • Basic inventory management
- • Simple customer database/CRM
- • Internal booking/scheduling tool
Timeline: 4-8 weeks
Mid-Complexity Systems
$40,000 - $150,000
Examples:
- • Customer portal with account management
- • Booking system with payment integration
- • Job management system
- • Advanced CRM with integrations
Timeline: 8-16 weeks
Enterprise Solutions
$150,000 - $500,000+
Examples:
- • Multi-tenant SaaS platforms
- • Industry-specific systems
- • Complex marketplace platforms
- • Enterprise resource planning
Timeline: 4-12+ months
What's Included in the Price?
✓ Included with Good Developers
- • Discovery and planning sessions
- • UI/UX design
- • Development and coding
- • Testing (unit, integration, user)
- • Deployment and go-live support
- • User training and documentation
- • Bug fixes during warranty period
- • Source code ownership
ⓘ Not Usually Included
- • Ongoing support after warranty
- • Web hosting and infrastructure costs
- • Third-party service fees (APIs, SMS)
- • SSL certificates and domain names
- • Major feature additions post-launch
- • Data entry or migration labour
- • Training beyond initial sessions
Hidden Costs to Watch For
Third-Party Services
- • Payment gateway fees (Stripe, PayPal: 1.75% - 2.9% per transaction)
- • SMS notifications (5-10c per message)
- • Map APIs (Google Maps: can add up with volume)
- • Email services for bulk sending
Ongoing Hosting & Infrastructure
- • Basic hosting: $30-100/month
- • VPS/Cloud: $100-500/month
- • Enterprise hosting: $500-2000+/month
Future Maintenance
Security updates, dependency updates, compliance changes, performance optimisation. Typical: 15-20% of build cost annually.
Data Migration
Cleaning old data, mapping fields, testing and validation. Can be 10-20+ hours depending on complexity.
How to Get an Accurate Quote
1Define Your Problem, Not the Solution
Explain what's not working now and describe desired outcomes. Let developers propose solutions.
Example: "We lose 10 hours/week on manual invoicing" not "We need an invoice PDF generator"
2Identify Must-Have vs Nice-to-Have Features
List core requirements (deal-breakers) and separate "would be nice" features. Consider a phased approach and prioritise for budget constraints.
3Consider Existing System Integrations
What software do you currently use? What data needs to flow between systems? Any API limitations? Single sign-on requirements?
4Think About Future Growth
Consider user growth projections, feature expansion plans, geographic expansion, and scalability requirements.
5Be Realistic About Timeline Pressures
Rushed projects cost more. Quality takes time. Budget for proper testing and consider a soft launch approach.
Fixed Price vs Time and Materials
- Fixed price: Budget certainty but less flexibility to adjust scope
- Time & Materials: Flexibility to adapt but less budget certainty
- Hybrid: Fixed price for core features, T&M for extras
Best approach depends on project clarity: The more defined your requirements, the more suitable fixed pricing becomes.
The Adelaide Advantage
Face-to-Face Discovery Sessions
Meet in your office or ours. See your current processes firsthand. Build real understanding.
Local Market Understanding
Know Australian business practices. Understand local compliance. Familiar with Xero, MYOB.
Same Time Zone Communication
No 12-hour delays on questions. Same-day responses. Real-time problem solving.
No Language or Cultural Barriers
Clear communication. Shared business context. Cultural understanding.
Is It Worth It? The ROI Perspective
Time Savings Example
Manual process: 15 hours/week
Hourly cost (salary + overheads): $60/hour
Weekly saving: 15 x $60 = $900
Annual saving: $46,800
Software cost: $80,000
ROI timeframe: ~20 months
Combined Benefits
Time savings: $46,800/year
Error reduction: $15,000/year
New capabilities: $12,000/year
Total annual benefit: $73,800/year
ROI achieved: 13 months
5-year return: 462%
What You Should Remember
- Budget $15k-$500k+ depending on complexity — Most SME projects fall in the $40k-$150k range
- AI-powered development can reduce costs 30-40% — Without sacrificing quality or customisation
- Local Australian developers cost more upfront — But deliver better results through understanding your business context
- Look at total cost of ownership — Not just build price; include hosting, maintenance, and hidden costs
- ROI often achieved within the first year — Especially for software replacing manual processes
- Quality varies significantly — The cheapest quote often means shortcuts you'll pay for later
Ready to Get a Transparent, No-Obligation Quote?
We'll give you honest answers about costs—even if that means telling you custom software isn't right for you yet. We'd rather be straight with you than win a project that won't deliver value.
Get Your Free ConsultationFree 30-minute discovery call. Adelaide-based. No pressure.
Custom software costs vary widely, but they don't have to be a mystery. The more transparent you are about your needs and budget, the more accurate and helpful we can be with pricing. And if we think there's a more cost-effective solution—even if that means not building custom software—we'll tell you.