Best IP Phone Systems for Small Business in Australia - 2026 Guide
9th May 2026
Best IP Phone Systems for Small Business in Australia — 2026 Guide
If you're running a small business in Australia and still using an old analogue phone system — or relying entirely on mobile phones — you're paying more than you need to and missing features that could make your team significantly more productive.
Modern IP phone systems have transformed business communications over the past decade. They're more affordable than ever, far more flexible than traditional systems, and can be set up and running in a fraction of the time of old-style hardware PBX systems.
But with so many options available — VoIP, SIP, hosted PBX, on-premise systems, 3CX, Yeastar — it can be difficult to know where to start. This guide cuts through the jargon and helps you understand exactly what's available, what suits different types of small business, and what phones you'll need to make it work.
What is an IP phone system?
An IP phone system — also called a VoIP phone system or SIP phone system — routes your calls over your internet connection rather than traditional copper phone lines. Instead of paying for separate phone lines for each handset, your calls travel as data packets across your broadband connection.
The result is lower call costs, greater flexibility, and a much richer feature set than traditional analogue systems. IP phone systems support features like call transfer, hold music, voicemail to email, auto attendant, call queues, mobile app extensions and video calling — features that used to require expensive proprietary hardware and ongoing maintenance contracts.
For Australian small businesses that have already migrated to the NBN, an IP phone system isn't just an option — it's increasingly the only practical choice, since NBN connections don't support traditional analogue phone services the way copper PSTN lines did.
The two main types of IP phone system
Hosted VoIP — cloud-based
With a hosted VoIP system, your phone system software runs in the cloud — managed by a service provider. You pay a monthly per-seat fee, your phones connect to the internet, and the provider handles all the maintenance, updates and infrastructure.
Hosted VoIP is ideal for small businesses that want minimal IT involvement, don't want to manage hardware, and prefer a predictable monthly cost. The trade-off is ongoing subscription costs that add up over time, and less control over your system configuration.
Popular hosted VoIP providers in Australia include 8x8, RingCentral, Vonage and various local providers. Most will supply or recommend compatible SIP phones.
On-premise IP PBX — self-hosted
With an on-premise system, you run a software PBX on a server or dedicated appliance in your office. The most popular platform in Australia is 3CX, followed by Yeastar and Grandstream UCM.
On-premise gives you full control, no ongoing per-seat licensing fees once you own the system, and the ability to customise your call flow in detail. The trade-off is that initial setup requires more technical knowledge, and you're responsible for maintenance and updates.
For businesses with 5–50 staff and an IT-literate person on the team, an on-premise 3CX or Yeastar system is typically the most cost-effective long-term choice.
3CX — Australia's most popular small business phone system
3CX has become the dominant IP phone system platform for Australian small business over the past decade — and for good reason. It runs on standard Windows or Linux hardware, supports a generous free tier for small deployments, has an excellent mobile app that turns staff smartphones into full office phone extensions, and is supported by a large network of Australian IT resellers and installers.
3CX supports all standard SIP phones — meaning you can choose from a wide range of compatible desk phones from Fanvil, Yealink, Grandstream and others at competitive prices, rather than being locked into proprietary hardware.
For a small business of 5–20 staff, a 3CX system with quality SIP desk phones is typically the most cost-effective and capable solution available in Australia today.
What IP phones do you need?
Once you've chosen your phone system platform, you'll need SIP-compatible IP phones for each desk. Here's what to look for at different price points and use cases:
Entry level — reception and general staff For receptionists, admin staff and general office use, a quality entry-level SIP phone with a clear colour display, HD audio and Gigabit ethernet provides everything most users need. The Fanvil X3U Pro is an excellent example — reliable, clear audio, easy to configure on 3CX and Yeastar, and priced for budget-conscious deployments.
Mid-range — managers and power users Managers and team leaders who handle higher call volumes benefit from a phone with more programmable keys for speed dialling contacts, a larger display, and features like Bluetooth headset connectivity. The Fanvil X4U and X5U series hit this sweet spot well.
Executive — high volume, video capable For executives and operators handling complex call flows, a premium IP phone with multiple SIP lines, a large colour touchscreen, built-in Wi-Fi and Bluetooth, and video calling capability delivers maximum productivity. The Fanvil X210 is the standout option in this category — 20 SIP lines, up to 106 programmable DSS keys, and H.264 video support at a price that compares extremely favourably with Cisco and Polycom equivalents.
Conference rooms Meeting rooms need a conference speakerphone that sits in the centre of the table and picks up voices from all directions. The Fanvil C600 and C400 series conference phones deliver professional audio quality and SIP compatibility for meeting rooms of all sizes.
Mobile staff — cordless Staff who move around the office or between floors need a cordless SIP phone that stays connected as they roam. For standard office environments, a DECT SIP phone provides adequate coverage. For larger sites — warehouses, hospitality venues, campuses — EnGenius SIP cordless phones deliver dramatically greater range.
How many phones do you need?
A common question from small businesses setting up their first IP phone system is whether every staff member needs a desk phone, or whether some can rely on the mobile app.
The honest answer is it depends on the role. Staff who spend significant time on the phone — reception, sales, customer service, accounts — benefit greatly from a quality desk phone with a comfortable handset, physical buttons for hold and transfer, and a headset port for hands-free operation. The ergonomics of a proper desk phone make a real difference for people making and receiving dozens of calls per day.
Staff who are primarily mobile, work from home, or make only occasional calls can often be served adequately by the mobile app extension — saving the cost of a desk phone for those positions.
A common approach for a 10-person office is 6–7 desk phones for the people who use the phone most, with the remaining staff on mobile app extensions.
What do you need to set up an IP phone system?
Beyond the phones themselves and your chosen phone system platform, you'll need:
A reliable broadband connection — NBN with a minimum of 25Mbps download and 10Mbps upload handles most small business phone deployments comfortably. Each concurrent call uses approximately 100Kbps of bandwidth.
A PoE network switch — Power over Ethernet switches power your IP phones directly through the ethernet cable, eliminating the need for individual power adaptors at every desk. This simplifies installation significantly and is the standard approach for professional IP phone deployments. Telecom Depot stocks PoE switches in 8, 16 and 24-port configurations suitable for small business deployments.
Quality of Service (QoS) configuration — Your router or firewall should be configured to prioritise voice traffic over other internet traffic, preventing call quality issues when the internet connection is busy. Most modern business-grade routers support this.
How much does an IP phone system cost?
For a typical small business of 5–15 staff, here's a realistic cost guide for an on-premise 3CX deployment:
- 3CX licence — Free for up to 4 simultaneous calls (sufficient for most businesses under 10 staff). Paid tiers start from approximately $175 AUD/year for 8 simultaneous calls.
- IP phones — Quality SIP desk phones from Fanvil range from approximately $100–$500 per handset depending on the model. Budget $150–$250 per desk for a solid mid-range phone.
- PoE switch — An 8-port PoE switch suitable for a small office starts from approximately $120–$200.
- Installation — If using a local IT installer, budget $500–$1,500 for a small business deployment depending on complexity.
Total cost for a 10-person deployment with quality Fanvil phones, a PoE switch and 3CX: approximately $2,500–$4,000 all up. Compare this to the ongoing monthly costs of a hosted VoIP service at $25–$50 per user per month — the on-premise approach pays for itself within 12–18 months for most small businesses.
Getting the right advice
The most important thing when choosing an IP phone system is matching the technology to your specific environment and requirements. A system that works perfectly for a 5-person accounting firm may be completely wrong for a 15-person warehouse operation or a medical centre with specific compliance requirements.
Telecom Depot has been supplying and advising Australian businesses on IP phone systems since 2010. We stock a carefully selected range of SIP phones from Fanvil, Yealink and Flying Voice— all compatible with 3CX, Yeastar and major hosted VoIP platforms — and our team can help you choose the right phones for your system and environment.
Call us on 1800 890 425 or browse our IP phone range online. We're happy to answer technical questions before you buy — it's the kind of advice that's genuinely hard to find from a generalist electronics retailer.
Telecom Depot stocks IP phones, PoE switches, VoIP gateways and telecommunications accessories for Australian small business. All products are stocked in Australia and dispatched from our Melbourne warehouse.