Backpackers' Guide to Melbourne (+ Budget Tips 2025)

Melbourne is one of those cities that pulls you in with its energy, but let’s be real—it’s not the cheapest place to travel. That said, backpacking here on a budget isn’t just possible, it’s pretty easy if you know where to look. This backpackers' guide to Melbourne breaks down everything you need to know, from cheap eats and free things to do, to affordable day trips and budget-friendly accommodation. Whether you're here for a weekend or a few months, these tips will help you stretch your dollars while still making the most of everything Melbourne has to offer.

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How Much Does Backpacking in Melbourne COST?

Melbourne’s a great city to explore. Considered the culture capital of Australia and the second most populated city after Sydney, there’s so much to see and do on your visit. However, the reality is, Melbourne isn’t necessarily cheap. Even so, with the right mentality and know-how, anything’s possible, and that means travelling Melbourne on a budget is possible too.

A breakdown of average daily expenses:

• Hostel Dorm: $25 - 50 (6-10 beds in a room)
• Private hostel room: $50 - 80
• Budget cafe meal: $10 - 15
• Daily Myki cap: $5 - 10  (save even more money by using the free tram zones!)
• Tickets to paid attractions: $20 - 35
• A beer at a bar/pub: $20 - 40 / $5 - 10 (Happy Hour price)
• Miscellaneous:
• SIM: $5 - 10 for prepaid SIM with data
• Laundry/toiletries: $5
  

Ultimate Backpacker Tips in Melbourne



Cheap Eats & Drinks in Melbourne



While Melbourne can be known for some fine-dining eating experiences, that doesn't mean it lacks in those cheap, comforting cafes and restaurants that can satisfy your foodie needs. Take a look at the following list of some of best places to eat and drink (that takes $20 - 40 per person) to include for Backpackers in Melbourne.

Visit Brighton Beach Huts

Also called the Brighton Beach Bathing Boxes, these colourful huts are iconic landmarks in Melbourne that serve as the perfect photo opportunity right by the beach. The perfect day trip from Melbourne’s CBD, come check these out for an unforgettable memory in the city.

Explore more: 20+ Best Things to do in St Kilda That You Must Try

Hunt For Cute Coffee Shops

Known for its delicious matcha coffee, Osoi is your favourite neighborhood coffee shop where you can also relax and do some work. 

Considered an institution in North Fitzroy, Tin Pot Cafe serves up all your favourite coffee shops staples - Think delicious brews and great sandwiches!

Lastly, INI Coffee serves as a chic coffee shop with its all-white interior. Come for an afternoon to unwind while in Melbourne. 

Look for a working café? Check out: Best Working Cafés in St Kilda

Visit Royal Botanical Gardens Melbourne

An integral part of Melbourne’s cultural life and history, the Royal Botanical Gardens are Melbourne’s answer to Central Park in New York City. A must-visit in your backpacker itinerary, they’ve even got free guided walks so you won’t have to spend anything!

Explore ACMI Museum

Australia’s National Museum of Screen Culture, ACMI is the place to go if you’re an avid fan of film, TV, video games, and art. Regularly hosting exhibitions, screenings, and festivals, you’ll never run out of things to do at ACMI.

Where Should You Spend Your Evenings?

St Kilda Pier

Why not visit the St Kilda Pier and partake in penguin watching for the evening? 

Kingpin Bowling

Whether it’s bowling, laser tag, arcade games, or pool, Kingpin Bowling is your one-stop shop for all things entertainment. 

Moonlight Cinema (Summer Only, Botanic Gardens)

A great way to spend a few hours with a friend or significant other, Moonlight Cinema shows all the best indie and blockbuster films for your viewing pleasure.

Open mic nights at bars

Open mic night is a great way to sing to your heart’s content. Bars like Iddy Biddy Bar and The Local Taphouse are some of our favourite bars in St Kilda.

Explore AC/DC Lanes Or Hosier Lanes



Street art is everywhere in Melbourne and AC/DC and Hosier Lanes are two streets to visit if you want to have a look at some of the coolest street art in town. Another great free activity, this is ideal for art lovers and those who want to immerse themselves in the culture.

Day Trip Ideas From Melbourne That Won’t Break Your Bank

Great Ocean Road

The Great Ocean Road is one of the most scenic coast drives in the world. To fully experience this journey, we recommend renting a car with your fellow backpackers and enjoy this journey together! At the start of your journey, grab a coffee at Torquay before making your way to some must-visit locations like: Gibson Steps (if you're looking for peaceful beach moments), Bells Beach (if you’re a die-hard surfer), Kennet River (for a chance to see wild koalas), and The Twelve Apostles (the most famous attraction of Great Ocean Road). 



Mornington Peninsula

South of Melbourne, the Mornington Peninsula is ideal for beach holidays, marine activities, and spas days to unwind. While renting a car is the best option, you can also take the train to Frankston, then switch to a local bus. Upon arrival, there’s so much to do--For natural beauty lovers, be sure to check out Sorrento Back Beach for stunning coastal views. Otherwise, why not ride the gondola to Arthur's Seat? Finally, for those who just want to relax, Peninsula Hot Springs is the place for you. Just make sure to book in advance for the cheapest entry times!

Bendigo

Australia's first-ever designated UNESCO Creative City and Region of Gastronomy, Bendigo is a hub of good eating and drinking. If that wasn’t enough, Bendigo was once a gold-rush boom town and it’s full of ornate architecture to provide a feast on all five senses. After a day of eating, why not relax in the Bendigo Botanic Gardens? For easy access, take a 2 hour train ride from Melbourne. 

Hostels are your best bet – they’re cheaper than hotels, have a great social vibe, and often come with freebies like breakfast, WiFi, and social events. For extra savings, look for hostels with kitchen access so you can cook some of your meals!

Accommodation in the Melbourne CBD is expensive, but staying just 10-15 minutes outside the city can save you big bucks. This means you’re near the city center but paying much less. 

Make sure you stay near public transport stations for buses, trains, and trams.

If you’re looking for a great hostel that takes all these tips into account, look no further than Pint on Punt Backpackers - one of the best cheap places to stay in St Kilda for solo-travellers! Not sure where to start? Contact us now and we’ll be happy to help with any queries.