What Renovations Actually Cost in Australia in 2026 

Every renovation quote you get will be technically correct and still not tell you what you’re going to spend. That’s not builders being dishonest. It’s the industry’s most common blind spot. A quote covers the job as scoped. It doesn’t cover the permit delay, the asbestos in the subfloor, or the 20 percent you didn’t budget because nobody told you to.

We pulled together current 2026 Australian renovation cost data for the four project types homeowners ask us about most: bathroom renovation cost, kitchen renovation cost, home extension cost per square metre, and granny flat cost in Queensland. Alongside that, we’ve laid out the costs that routinely get left off the first conversation with a builder, and how much renovation contingency budget you should actually be setting aside once you understand what’s driving the price.

No lead magnet, no “contact us for a real number.” The real numbers are below, backed by industry data from the Housing Industry Association and the Queensland Building and Construction Commission, with links to the primary sources so you can check them yourself.

What the four most common renovations cost in Australia right now

Bathroom renovation cost: $10,000 to $55,000, typical $26,000

The spread here comes down almost entirely to whether the layout changes. A cosmetic refresh that keeps the existing footprint, meaning the toilet, shower, and vanity stay roughly where they are, sits at the low end of the range. Move plumbing, waterproof a wet area from scratch, or knock down a wall to enlarge the room, and you’re in the upper half of the range fast. The Housing Industry Association’s own renovation market outlook puts the national average complete bathroom renovation at close to $26,700, which lines up closely with the typical figure we quote above. Tiling, waterproofing membrane compliance, and fixture quality are the three line items most likely to push a bathroom job toward the top end.

Kitchen renovation cost: $15,000 to $100,000, typical $35,000

The single biggest driver of kitchen renovation cost isn’t the size of the kitchen. It’s whether the layout changes. Reface the existing footprint, keeping the sink, stove, and fridge in their current positions, and you can land well under $35,000. Move the sink, shift a load-bearing wall, or open the kitchen up to a living space, and plumbing relocation, electrical rewiring, and structural work stack up quickly. Industry data from the Housing Industry Association places the 2025 to 2026 national median kitchen renovation cost at $30,000 to $35,000, consistent with what we’re seeing on the Gold Coast and in Brisbane.

Home extension cost per square metre: $72,000 to $220,000 for 40 square metres

Extensions price per square metre, typically $1,800 to $5,500 per square metre depending on finish level, site access, and whether it’s a single storey or double storey addition. A 40 square metre extension at a project standard finish lands close to the middle of that range, but site conditions such as slope, access for machinery, and the condition of the existing slab can push the final cost either way before a single wall goes up. See our residential renovation and extension projects for examples of the scope this typically covers, from single room additions through to full second storey builds.

Granny flat cost in Queensland (2 bedroom secondary dwelling): $175,000 to $260,000, typical $210,000

Council requirements now do most of the heavy lifting on price. A compliant, liveable 2 bedroom secondary dwelling in Queensland needs its own services connections, its own compliance pathway under the local planning scheme, and in most councils a separate building approval process from the main house. If the secondary dwelling needs to support ageing in place or accessibility requirements, see our accessible spaces and NDIS home modification work, because the compliance layer for accessible builds is a different consideration again from a standard secondary dwelling.

Australia’s renovation market heading into 2026

Renovation spending in Australia softened over 2023 and 2024 as interest rates rose and material and labour costs climbed roughly 25 percent according to Housing Industry Association figures. Heading into 2026, the same industry data points to households returning to the renovation market as successive interest rate cuts have taken pressure off household budgets. What this means practically for anyone planning a project this year is that quotes are likely to firm up rather than soften further, so a quote you get today is a reasonable basis for planning, but it’s worth locking in pricing with a signed contract sooner rather than waiting for a market dip that current data doesn’t support.

Why three quotes for the same job can be $60,000 apart

This is the question we get asked more than any other. Three builders walk the same site, quote the same brief, and come back $10,000, $30,000, sometimes $60,000 apart. Homeowners naturally assume the middle quote is the safe, sensible choice.

It usually isn’t. A wide spread between quotes almost always means the quotes aren’t actually pricing the same job. One builder has included site works, permits, and a real contingency line. The other two haven’t, either because they’ve cut corners on purpose or because they simply haven’t scoped the job as thoroughly. The lowest quote isn’t cheaper. It’s incomplete, and you find out what it left off partway through the build, at which point you’re negotiating variations from a position of far less leverage than before you signed.

What to actually compare: ask every builder for a line item breakdown, not a lump sum figure. Check specifically whether permits, site preparation, and contingency are included or excluded from the headline number. That single question resolves most of the mystery behind why quotes vary so widely for what looks, on paper, like an identical brief.

What a properly written renovation quote should include

Master Builders Queensland’s guidance for homeowners and renovators is a useful independent checklist to compare any quote against before you sign. At minimum, a proper quote or contract should set out the scope of work in detail, a fixed price or clearly defined cost plus basis, a payment schedule tied to construction milestones, provisional sums for anything not yet finalised, and a documented process for pricing variations if something unexpected is found once work starts. The Queensland Building and Construction Commission also publishes a detailed homeowner’s guide to building and renovating that covers exactly what should be in your contract before the cooling off period even begins. Reading either of these before you sign anything takes about fifteen minutes and can save considerably more than that in avoided disputes down the track.

5 costs that don’t always make it into the first conversation

None of these are hidden fees in the sense of anything underhanded. They’re real costs that a properly scoped quote should include, and a rushed one often doesn’t.

1. Council permits and approvals. Anywhere from $500 to $10,000 or more, depending on scope and your local council’s process. The Queensland Building and Construction Commission’s guide to building or renovating is the clearest starting point for working out which approval pathway your project actually needs.
2. Contingency buffer. A minimum of 15 percent on a straightforward job, rising to 25 to 40 percent on an older home or anything structurally complex. Most homeowners are quoted a flat 10 percent, which is only realistic for the simplest possible scope.
3. Site works and preparation. Clearing, levelling, and retaining walls. On a sloped or overgrown block this alone can add five figures before the actual build even starts.
4. Utility connections. New power, water, and sewer connections for extensions and granny flats aren’t always priced into the headline build cost. Business Queensland’s building approvals and inspections guide covers what’s required before these connections are signed off by your local authority.
5. Structural surprises. Asbestos, outdated wiring, and timber rot are the three most common finds once a wall or subfloor is opened on an older home. Under the National Construction Code, existing parts of a building that aren’t part of the renovated works are generally not required to be brought up to current standard, but any new work must comply, which is exactly where unbudgeted cost tends to appear. If your project involves an older home with any history of water intrusion, our water damage procedure guide covers what a proper assessment looks like before you renovate over a problem rather than fixing it.

Renovation contingency budget: how much should you actually set aside

Most homeowners are told to budget 10 percent contingency. That number is the floor for the simplest possible job, and only that.

The pattern is simple: the more of the existing structure your renovation touches, the more you should hold in reserve. A pre 1980s Queenslander with a full internal reconfiguration is a fundamentally different risk profile to a new build extension on a house with modern, fully documented services, and your contingency budget should reflect that difference rather than defaulting to the same flat percentage regardless of the job.

Three questions worth asking before you sign anything

• Is this quote a fixed price or a cost plus estimate? Know which one you’re signing before you compare numbers between builders, because the two aren’t directly comparable without adjustment.
• What’s explicitly excluded? Permits, site works, and contingency should be named in writing, not implied or left to assumption.
• What happens if something’s found once walls are open? Ask how variations are priced and approved before work starts, not after the discovery has already happened and you’re negotiating from a weaker position.

Frequently asked questions

How much does a renovation cost in Australia in 2026?

It depends on the project. A bathroom renovation typically costs $10,000 to $55,000, a kitchen renovation $15,000 to $100,000, a 40 square metre home extension $72,000 to $220,000, and a 2 bedroom granny flat $175,000 to $260,000. Layout changes, site conditions, and the age of the home are the biggest drivers within each range.

Why do renovation quotes vary so much between builders?

A wide spread between quotes usually means the builders scoped the job differently, not that one is simply cheaper. The lowest quote often excludes permits, site works, or a contingency allowance that the higher quotes include. Compare line item breakdowns, not just totals, before assuming the middle or lowest quote is the safest choice.

How much contingency should I budget for a renovation?

15 percent for a straightforward new build extension, 20 percent for a standard renovation on an established home, 28 percent for an older pre 1980s home, and up to 38 percent for full structural work where walls or the subfloor are being opened.

What costs do renovation quotes commonly leave out?

Council permits and approvals, contingency buffer, site works and preparation, utility connections, and costs from structural surprises like asbestos, outdated wiring, or timber rot found once walls are opened.

Do older homes cost more to renovate than newer homes?

Generally yes. Homes built before 1980 typically carry a higher renovation contingency budget, around 28 percent versus 20 percent for an established but more modern home, because outdated wiring, asbestos containing materials, and non-compliant plumbing are more likely to be found once work begins.

Is a granny flat cheaper to build than a home extension in Queensland?

Not necessarily. A 2 bedroom granny flat in Queensland typically costs $175,000 to $260,000, which can be comparable to or higher than a mid-sized home extension, largely because a secondary dwelling requires its own services connections and its own council approval pathway rather than extending an already-connected existing structure.

Get a real number for your project

Cost guides are a starting point, not a quote. Every site, every home, and every council has its own variables that a general guide can’t account for. If you’re planning a renovation, extension, or granny flat build on the Gold Coast or in Brisbane, get in touch with Buildamax for an itemised quote, with permits, contingency, and site works included from the start rather than left for a variation later.