AI tools vs hiring a virtual assistant: the real cost for Australian SMBs

An AI subscription costs about A$28 to A$35 a month per seat, but it only saves money if someone has time to run it. A full-time local admin hire costs at least about $58,500 a year in minimum wages and super, before other on-costs. An offshore VA using AI sits between the two, and is usually the best value when you need work done, not just drafted.

This post is part of our guide to why AI won't replace virtual assistants. Below we cost three options side by side so you can plug in your own numbers.

What does AI on its own actually cost?

The subscription is small. ChatGPT Business lists a standard seat at A$28 a month billed annually, or A$35 billed monthly. That's A$336 to A$420 a year.

The real cost is your time. AI produces drafts, and somebody has to write the prompts, check the output, fix mistakes and send it. If that's you, use this formula:

True cost of AI alone = subscription + (hours you spend running it each week × 52 × the value of your hour)

As an example, if you spend five hours a week on it and value your time at $100 an hour, AI alone costs you about $26,000 a year in time on top of the subscription. Put in your own numbers. Many owners find “free” AI is the most expensive option once they count their own hours.

There's also the work AI can't do at all: chasing, calling, judgement and follow-through. The pillar post explains what AI still needs a person for.

What does a local hire cost in Australia?

A local employee has a legal floor. From 1 July 2026:

Then add what the floor leaves out: any award rate above the minimum (admin roles are often covered by an award), experience, leave loading, workers' compensation, payroll tax if you're over your state's threshold, equipment, software, desk space and recruitment. An experienced executive assistant or bookkeeper will cost well above the floor.

What does an offshore VA + AI cost?

Three parts:

1. The VA's wage, which is paid separately from our service fees and depends on role, seniority and country.

2. An Elephant Teams service fee, from our services page:

- Ready for You: $5,999 + GST, one-off. We source, screen and place your VA, coordinate IT setup and hand over. It includes a 3-month free replacement guarantee.

- Managed for You: $1,000 a month per team member. The recruitment fee is waived for a 12-month commitment, and you get onboarding, HR and employment guidance and regular check-ins. It includes an extended 5-month guarantee with up to two free replacements in the first 12 months.

- Optional employment setup: Employer of Record (EOR) is $350 a month if you want us to run payroll and compliance. Setup of Record (SOR) is free if you manage the employment setup yourself.

1. An AI seat: about A$28 to A$35 a month.

How do the options compare over year one?

Let W be your VA's monthly wage:

Over 12 months, Managed for You costs about $6,000 more in fees than Ready for You. What that buys is structured onboarding, HR guidance, regular check-ins and a longer replacement guarantee. If you've managed remote staff before, Ready for You may be enough. If this is your first offshore hire, many owners prefer the support.

When is AI alone enough?

Sometimes. If you have only a few hours of admin a week, enjoy setting up tools and don't need anyone to chase or call, a business AI seat may be all you need. Once admin passes about a day a week, or the work involves follow-up and judgement, a person running the AI usually costs less than your time does.

What hidden costs should you plan for?

• Your onboarding time in the first month, whichever option you choose.

• IT and equipment. We offer IT options separately, from self-managed to hardware we configure for you.

• Overlapping hours. Agree working hours that overlap with yours. See Philippines vs Sri Lanka VAs for how the time zones line up.

• Tool sprawl. Keep the stack small. Our VA + AI tool stack shows a lean setup.

Ready to cost your own hire?

Pick the level of support and the country:

• Ready for You: $5,999 + GST, one-off.

• Managed for You: $1,000 a month per team member.

• Sri Lanka or the Philippines: see our Sri Lanka and Philippines pages.

Start with the virtual assistant role or the bookkeeping role, and compare everything on our services page.

Frequently asked questions

Is AI cheaper than hiring a virtual assistant?

The subscription is cheaper, at about A$28 to A$35 a month for a ChatGPT Business seat. But AI needs someone to run and check it. If that's you, count your own hours. Once admin passes about a day a week, a VA running AI usually costs less than your time.

How much does it cost to hire a virtual assistant in Australia?

A local full-time employee costs at least about $58,525 a year in minimum wage and 12% super from 1 July 2026, before other on-costs. An offshore VA through Elephant Teams costs their wage plus either $5,999 + GST one-off (Ready for You) or $1,000 a month per team member (Managed for You).

What's the difference between Ready for You and Managed for You?

Ready for You is a one-off $5,999 + GST recruitment service with a 3-month free replacement guarantee, and you manage your VA. Managed for You is $1,000 a month per team member with the recruitment fee waived for a 12-month commitment, plus onboarding, HR guidance, check-ins and a 5-month guarantee.

Are the VA's wages included in Elephant Teams' fees?

No. The offshore team member's wages are separate from both service fees. Employer of Record support, where we run payroll and compliance, is an optional $350 a month.

Can I start with AI and add a VA later?

Yes. Many owners start with an AI seat, then hire a VA once they see which tasks repeat. Your VA can then take over the prompts and workflows you've built.