Cost of website hosting in Australia [2023]

Web hosting provides storage space and access to websites on the internet. In order for a website to be accessible, it needs to be hosted on a private server. Companies that host web services typically provide the necessary infrastructure and technical support to enable website owners to upload their content and make it available online.

If you’re planning to run a website, the cost of website hosting is the first thing to consider, as it will be the foundation of your platform. Hosting services are recurring expenses and are also affected by several factors.

Cost of Website Hosting in Australia [2023]

Factors Affecting the Cost of Website Hosting

Before choosing your domain name, select the best hosting sites that fit your needs and allocated budget. The cost of website hosting is usually affected by different factors, including:

Type of Hosting

The hosting type you choose can affect the cost. Shared hosting, where multiple websites share a single server, is generally the most affordable option. However, if you need more resources and control, you may opt for a VPS or dedicated server, which can be more expensive.


The web hosting packages or features the web hosting provider offers can also affect the cost. Some providers may offer additional features such as secure sockets layer (SSL) certificates, website backups, and security features that can cost more.

Traffic and Storage

The amount of traffic and storage required by your website can also impact the cost. If you have a high-traffic website or require a large amount of storage, you may need to pay more for a hosting plan to accommodate your needs.


The location of the web hosting provider can also affect the cost. Hosting providers in regions with higher costs of living may charge more for their services.

Contract Duration

The length of the hosting contract can also impact the cost. Longer contracts may offer a lower monthly fee but require a larger upfront payment.

Types of Web Hosting and Their Associated Cost

What to consider when developing a website is not limited to the website’s design and content alone. Choosing the right web hosting provider is also a critical aspect of website development. You must identify what web hosting type you need because each web hosting site has its own set of features and associated cost.

Below are web hosting comparisons you can use to build your website. Note that some web hosting prices that you see on their website are just introductory prices and might go higher on your next subscription; however, the types listed below have different sizes available according to the level of traffic that a site gets – do you recall how a popular event can cause a site to “break” due to the influx of the traffic? This usually refers to the server not being able to handle the amount of traffic and therefore “breaking”.

Shared Hosting

Shared hosting is the most affordable web hosting option and is ideal for small types of business or personal websites. With shared hosting, multiple websites share a single server, which makes it a cost-effective option. The costs for small, medium and large varies as the server space needed to accommodate site traffic changes.

  • Affordable Hosting
  • Easy to use because of limited features
  • It has included technical support
  • Limited Resources such as storage space and bandwidth
  • Security concerns because of sharing
  • Limited control

Virtual Private Server (VPS) Hosting

In this type, multiple virtual servers are created by dividing a physical server. Each virtual server functions as an independent server, with its own operating system, resources and allocated central processing unit (CPU). This allows website owners to have greater control and flexibility over their server, without the expense of a dedicated server

  • More resources such as disk space and RAM than with shared hosting.
  • VPS hosting provides more control giving you access to your virtual server.
  • VPS hosting is scalable, so you can easily upgrade your resources as your website gains more traffic.
  • It is more expensive than shared hosting.
  • It requires more technical knowledge to be comfortable with server management and troubleshooting.
  • You’re still sharing a physical server with other websites, which means there is a risk of compromise.

Dedicated Server Hosting

Dedicated server hosting guarantees the highest level of control and resources. Dedicated hosting is where a physical server is dedicated entirely to one website or client. This option is ideal for an organisation owning multiple websites and would like to combine server space for multiple websites and/or for organisations with increased security concerns.

  • Dedicated server hosting offers the highest level of performance and resources.
  • Website owners have complete control over the server, including installing custom software, adjusting security settings, and configuring the server to meet their specific needs.
  • It is more secure than shared hosting or VPS hosting. Since no other websites are on the server, the risk of security breaches is reduced.
  • It can entertain heavy traffic volume.
  • It is the most expensive type of web hosting and is recommended for larger businesses.
  • It requires a high level of technical knowledge.

Cloud Hosting

Cloud Hosting uses multiple servers to provide a more scalable and flexible hosting solution. Rather than relying on a single physical server, cloud hosting utilises a network of servers to distribute the load and resources needed for a website. Your data will be secured and available in the event of a power outage or hardware malfunction as it will just transfer the data to another machine on the server.

  • Cloud hosting can maintain its website performance even with heavy traffic
  • It can use another server in case of a power outage
  • You can upgrade your bandwidth as you grow your website
  • It has a high average cost.
  • Risk of security with improper configuration
  • You have limited control since the web host manages cloud hosting.

Types of Hosting Environments


Production hosting environment refers to the live website that is accessible to the public. This is where the website runs and is available to users who are accessing it.


Staging hosting environment is a duplicate of the production environment, where changes and updates can be tested before they go live on the production site. This environment is where a team can test the website for bugs, errors, and performance issues before pushing the changes to production.

QA (Quality Assurance)

QA (Quality Assurance) hosting environment is where the team tests and evaluates the website's functionality, usability, and performance to ensure that it meets the required standards. In this environment, the team performs various tests to ensure that the website is error-free and meets the requirements set by stakeholders.


Development hosting environment is where developers make changes and updates to the website's code. This environment is not accessible to the public, and it is where developers test their code and create new features before pushing them to the staging environment for further testing. The development environment is where a website's core features are built and refined.

Tips for Choosing a Web Hosting Provider in Australia

Before selecting a company offering website hosting and support in Australia, consider these tips to avoid additional costs and get the service you deserve.

  • Know your needs: Before choosing a web hosting provider, consider your needs. Think about your website type, the amount of traffic you expect, and the resources you need.
  • Compare plans and pricing: Compare plans and pricing from different web hosting providers. Make sure you understand the pricing plan’s structure, including any additional fees or charges.
  • Check for uptime guarantees: Look for a web hosting provider that offers an uptime guarantee of at least 99.9%. This ensures that your site will be available to customers around the clock.
  • Look for good customer support: Choose a web hosting provider with good customer support. Look for providers that offer multiple ways to contact support, including phone, email and live chat. Make sure they have a reputation for providing fast and helpful support.
  • Check for security features: Look for a web hosting provider that delivers robust security features to protect your website and data. This includes features such as secure socket layer (SSL) certificates, firewalls and malware scanning.
  • Read reviews: Read reviews from other customers to get an idea of the quality of service provided. Look for reviews on third-party sites, not just on the provider’s website.
  • Consider the location of the data centre: Consider the location of the web hosting provider’s data centre. If your website’s audience is primarily in Australia, choose a provider that has a data centre located in Australia to reduce latency and improve website speed.
  • Look for additional features: Many web hosting providers offer additional features, such as website backups, security features, and support for popular software applications like WordPress. Look for developers that offer hosting services through providers like Amazon Web Services (AWS) and specialised WordPress hosting.

Frequently Asked Questions

Yes, shared hosting is generally much cheaper than dedicated hosting. With shared hosting, multiple websites share a single physical server, which means that the cost of the server is divided among the websites. This makes shared hosting a more affordable option for small businesses or individuals just starting with their websites.


Free web hosting plans may not be worth it in the long run. While they may save you money on hosting costs, they often come with limitations and security risks that can negatively impact your website’s performance and reputation. It’s often worth investing in a paid web hosting plan to ensure your website has the resources, control, and security it needs to succeed.


No, web hosting costs do not include website design or development. Web hosting is the service that provides the infrastructure, technology, and resources necessary to make your website accessible on the internet. It includes the server, storage, bandwidth, and other technical features to host your website.


Get Your Website Online Today With Butterfly

If you’re in the market looking for website hosting in Australia, it’s important to consider your options carefully to ensure that you find a provider that offers the right features, reliability, and value for your website’s needs.

Butterfly is a leading digital agency in Melbourne, Australia, that offers reliable, fast and secure hosting services. With Butterfly as your web hosting provider, you can be confident that your website is in good hands. So don’t wait, take action and get your website online today with Butterfly’s reliable and affordable web solution!

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About the Author

Staff Photo Darryl Dillon-Shallard

Darryl Dillon-Shallard

With over 25 years of expertise in web development, encompassing design, software engineering, DevOps, and business management, I am passionate about collaborating with clients to deliver inventive digital solutions.