What Is a Reasonable Budget for a Small Bathroom Remodel in 2026?

Fixing up a small bathroom doesn’t have to break the bank-but too many people guess their budget and end up stuck with half-finished tiles or a toilet that doesn’t flush right. If you’re planning a small bathroom remodel in 2026, you need numbers you can trust, not vague advice from YouTube videos. A realistic budget for a small bathroom remodel in Australia right now ranges from $8,000 to $25,000, depending on what you’re changing and where you live. Melbourne, Sydney, and Brisbane all have different labour and material costs, but the core breakdown stays the same.

What Counts as a Small Bathroom?

A small bathroom is usually between 15 and 25 square metres. That’s enough room for a toilet, a sink, a shower, and maybe a bathtub if you’re squeezing it in. Most Australian homes have this kind of bathroom-often called a “powder room” or “ensuite.” It’s not a spa retreat. It’s the place you brush your teeth, shower after work, and get the kids ready for school. That means your remodel should focus on function first, then style.

If you’re just replacing fixtures and repainting, you’re looking at the lower end of the budget. If you’re moving walls, adding underfloor heating, or installing custom cabinetry, you’re heading toward the top. There’s no point spending $20,000 on a bathroom you’ll use for five minutes a day. Know what you actually need before you start.

Breakdown: Where Your Money Actually Goes

Here’s what a typical $15,000 small bathroom remodel looks like in Melbourne in 2026:

• Demolition and waste removal - $800-$1,500. This includes tearing out old tiles, fixtures, and cabinetry. You’d be surprised how much junk a 10-year-old bathroom can hold.
• Plumbing - $2,500-$5,000. This is where things get tricky. If you’re moving the toilet or shower drain, expect to pay more. Water pipes run through walls and floors, and rerouting them means cutting into concrete or timber. Don’t skip this step-bad plumbing leads to leaks, mould, and insurance claims.
• Electrical - $1,200-$2,500. You’ll need GFCI outlets near the sink, proper lighting, and possibly a heated towel rail or exhaust fan. Electricians charge by the hour, and this isn’t a DIY job in Australia. Compliance is strict.
• Tiles and flooring - $2,000-$5,000. Ceramic or porcelain tiles are the standard. You can find good-quality tiles for $40-$80 per square metre. Installation adds another $50-$80 per square metre. Avoid cheap imported tiles-they crack, stain, and look dull after a year.
• Fixtures and fittings - $2,500-$6,000. A decent toilet ($500-$1,200), a single-sink vanity with storage ($1,000-$2,500), a showerhead and mixer ($800-$2,000), and taps ($300-$800). Don’t go for the cheapest taps-they leak within months. Brands like Caroma, Reece, and HCG offer reliable mid-range options.
• Cabinetry and storage - $1,500-$3,500. A simple wall-mounted vanity with a basin is cheaper than a floor-standing unit. If you need more storage, consider recessed niches in the shower or a mirrored cabinet.
• Paint and finishes - $500-$1,200. Moisture-resistant paint is non-negotiable. Look for products labelled “bathroom grade” or “mould-resistant.” Ceiling paint should be semi-gloss to handle steam.
• Labour and project management - $2,000-$4,000. Tradespeople don’t come cheap. A good tiler charges $60-$85/hour. Plumbers and electricians are similar. If you hire a project manager, add another 10-15% on top.

That adds up to about $15,000. If you’re doing everything yourself, you can cut that in half-but only if you know what you’re doing. Most people end up hiring pros because they don’t want to deal with a flooded bathroom three weeks after the “finish.”

What You Can Skip to Save Money

You don’t need a freestanding bathtub in a 1.8m x 2m bathroom. You don’t need heated floors unless you live in the mountains. You don’t need a smart mirror with Bluetooth speakers.

Here’s what actually adds value without costing a fortune:

• Upgrade from a basic showerhead to a rainfall model with a handheld sprayer. It feels luxurious and costs under $300.
• Install a good exhaust fan. It stops mould before it starts. A quiet, energy-efficient model from Broan or Panasonic lasts 10+ years.
• Use large-format tiles. Fewer grout lines mean less cleaning and a more modern look.
• Choose a single-sink vanity with drawers. It’s cheaper than double sinks and gives you more storage.
• Buy fixtures from Reece or Bunnings Warehouse. They have the same products as high-end showrooms but at 30-50% lower prices.

On the flip side, avoid these money traps:

• Custom-built cabinetry. Prefab vanities are just as good and come with warranties.
• Marble or natural stone tiles. They stain easily in humid environments and need sealing every year.
• Expensive lighting fixtures. LED strip lights under the vanity cost $150 and look just as good as $1,200 pendants.
• Changing the layout. Moving plumbing lines adds $3,000-$7,000 to your bill. Keep the toilet and shower where they are.

Regional Price Differences in Australia

Labour and materials aren’t the same across the country. Here’s how Melbourne compares to other cities in early 2026:

Sydney is the most expensive because labour rates are higher and transport costs for materials add up. Perth and Adelaide are more affordable, but you’ll still pay more than you think if you go for premium finishes. Melbourne sits in the middle-good balance of cost and quality.

How to Get the Best Value

Don’t just pick the cheapest quote. Look for these signs of a trustworthy contractor:

• They provide a detailed written quote with line items (not just a total).
• They’re licensed and insured-check with the Victorian Building Authority (VBA) if you’re in Melbourne.
• They’ve done at least three similar jobs in the last year. Ask for photos.
• They don’t ask for 50% upfront. A 10-20% deposit is normal; the rest is paid in stages.
• They include a 6-12 month warranty on workmanship.

Get at least three quotes. Don’t be afraid to ask: “What’s the most expensive thing you’d recommend I skip?” Good tradespeople will tell you what’s worth spending on and what’s not.

What Happens If You Go Under Budget?

People who try to do a bathroom for $5,000 usually end up spending $12,000 later. Why? Because they cut corners:

• They use cheap tiles that crack under foot traffic.
• They skip waterproofing and get mould in the walls.
• They install a low-flow toilet that clogs every time someone flushes.
• They don’t replace old pipes, and a leak ruins the ceiling below.

These aren’t just annoyances-they’re safety risks and expensive fixes. A $5,000 job today can cost $15,000 to fix in two years. It’s better to save up and do it right the first time.

How Long Does a Small Bathroom Remodel Take?

Expect 3 to 6 weeks from start to finish. Demolition takes a day. Plumbing and electrical take 3-5 days. Tiling and waterproofing need drying time-each layer must cure properly. That’s where delays happen. If your contractor says it’ll be done in 10 days, they’re either lying or cutting corners.

Plan to live without a bathroom for a few weeks. Rent a portable toilet if you can. Or set up a temporary shower in the laundry. Don’t try to squeeze into your partner’s bathroom for a month-that’s how relationships break.

When Should You Not Remodel?

If your house is over 30 years old and you’re planning to sell in the next 12 months, a full remodel might not pay off. A $20,000 bathroom upgrade adds maybe $15,000 to your home’s value. That’s a 25% return-good, but not amazing.

Instead, focus on cosmetic fixes: repainting, replacing taps, cleaning grout, installing a new vanity. You’ll get 80% of the visual upgrade for 30% of the cost.

If you’re staying long-term, go all in. A well-done bathroom improves daily life and adds lasting value.

Final Tip: Start With a Plan, Not a Wish List

Write down your must-haves: “I need storage,” “I want a walk-in shower,” “I hate cold floors.” Then rank them. What’s non-negotiable? What can wait? Stick to that list. Don’t let a shiny faucet or a fancy light fixture derail your budget.

Small bathrooms don’t need to be expensive. They just need to be smart. Do the research. Get the right quotes. Don’t rush. And remember-you’re not just spending money. You’re buying comfort, cleanliness, and peace of mind for years to come.