If you’re a backpacker heading Down Under, chances are you’ve already dreamt of road-tripping past endless beaches, dusty outback highways, and lush rainforests. But how do you actually go about renting a car in Australia without blowing your entire travel budget?

Don’t stress — we’ve got you. This guide covers everything a backpacker needs to know before hitting the road, from licence requirements to saving money, sleeping in your car (legally), and where to fuel up for free kangaroo sightings.

Why Rent a Car in Australia?

Australia’s public transport outside cities? Let’s just say it’s… patchy. Buses exist but take forever, and trains only connect major hubs. A rental car gives you the freedom to:

Explore off-the-beaten-path beaches and national parks
Camp under the stars in the outback
Split travel costs with your new hostel mates
Stop at random giant things (yes, The Big Banana is real)
Avoid dragging your backpack through 42°C heat to catch a bus

Whether you’re chasing waterfalls in the tropics or surfing the Great Ocean Road, having your own wheels is a game-changer.

Can Backpackers Rent a Car in Australia?

Short answer: Yes, absolutely.

But there are a few things to check first:

✅ Age Requirements

Most rental companies in Australia rent to drivers 21 and over, and Redspot rents to drivers aged 21 to 24 as long as they’ve held a licence for at least 12 months.

If you’re under 25, you might pay a young driver surcharge — so budget accordingly.

✅ Licence Requirements

You’ll need:

A valid driver’s licence in English, or
An International Driving Permit (IDP) alongside your home licence if it’s not in English

Provisional and probationary licences can be accepted too, but always double-check the terms before booking.

What Kind of Car Should You Rent?

Depends on your adventure vibes (and how many mates you’re squeezing in).

For the Classic Aussie Road Trip:

Compact SUV – Great for national parks, light off-road, and keeping your gear dry.

For Budget Backpackers:

Small hatchback – Cheap on fuel, easy to park, and surprisingly roomy if you Tetris-pack it right.

For the Social Nomad:

People mover – Perfect if you’re road-tripping with 5+ people or planning to car camp.

If you’re sticking to major highways, a basic car will do just fine. Just make sure it has air con, especially if you’re heading north where the sun tries to kill you.

How to Save Money on Your Rental

Let’s face it — your funds are probably better spent on surf lessons and flat whites than rental car fees. Here’s how to stretch your dollars:

Book Early

Last-minute bookings = higher prices. Book in advance online for better deals.

Share the Ride

Find other backpackers to split the cost of rental, fuel, and snacks. Post on hostel boards or travel Facebook groups.

Go One-Way… Strategically

Redspot offers one-way rentals between most major cities. Some routes even waive the one-way fee during promos.

Check Your Travel Insurance

Already covered for car rental excess through your travel insurance or credit card? Then you can skip the extra cover (just make sure it actually covers Australia).

Can You Sleep in Your Rental Car?

Short answer: Sometimes, but check local laws.

In Queensland and WA: often okay to camp in roadside rest stops
In NSW and Victoria: many councils ban overnight sleeping in vehicles
National parks: Only camp in designated areas

Pro tip: Use the WikiCamps Australia app to find legal (and free) places to sleep.

Tips for Driving in Australia (Especially If You’re Not from Here)

Australia’s roads can be wild (literally). Keep these in mind:

Wildlife = Danger

Kangaroos, wombats, and emus are most active at dawn and dusk. Avoid driving in rural areas at those times unless you want a surprise roo-shaped dent.

Drive on the Left

Seems obvious, but if you’re from Europe or the US, muscle memory is strong. Take it slow, especially on roundabouts.

Fuel Stops Can Be Sparse

In the outback, petrol stations can be hundreds of kilometres apart. Don’t risk it — top up often.

Expect Dead Zones

Mobile coverage can drop in remote areas. Download maps and playlists ahead of time, and don’t rely on Google to find the nearest servo.

Essential Packing List for a Car Trip

USB charger and phone holder
Refillable water bottle (dehydration is no joke)
First aid kit
Snacks – always snacks
Sunnies and sunscreen – that sun will cook you
Paper maps (just in case)
Towel – for beaches and roadside showers
Headlamp or torch – you’ll thank yourself at 10pm in a bush toilet

Epic Road Trips for Backpackers

You don’t need a 5-star hotel to enjoy a 5-star view. These routes are budget-friendly and packed with classic Aussie scenery:

The Great Ocean Road (VIC)

Dramatic coastal cliffs, surf beaches, and the iconic 12 Apostles. Perfect for 3–5 days.

Cairns to Airlie Beach (QLD)

Snorkel the reef, chase waterfalls, and hike tropical rainforests. Great in a camper-style setup.

Adelaide to Alice Springs

Outback at its finest. Don’t miss Coober Pedy (yes, the underground town) and Uluru. Definitely not a quick one — plan 7+ days.

Perth to Esperance (WA)

See kangaroos on the beach at Lucky Bay, and some of the most underrated coastlines in the country.

Redspot’s Backpacker-Friendly Perks

Renting with Redspot means you get:

21+ driver access (including provisional licence holders with 12+ months’ experience)
Unlimited kilometres at most locations
Airport pickups from over 50+ branches across Australia
No sneaky hidden fees
Support from a local Aussie company — no offshore call centres here!

Plus, our branches are used to backpackers. We’re happy to give local tips, road condition updates, and the best places to find cheap fuel and even cheaper coffee.

Final Tips Before You Hit the Road

Take photos of the car before you drive off (inside and out)
Read the T&Cs so you know what’s included
Don’t off-road in a 2WD unless you want a very awkward insurance claim
Plan your route but leave room for spontaneous detours — they’re often the best part

Ready to Roll?

Australia is best explored with a window down, music up, and a car full of mates. With a bit of planning (and sunscreen), you can have the adventure of a lifetime without breaking the bank.

So grab your licence, pack your bags, and let Redspot help you see Australia the backpacker way — full of freedom, fun, and a few questionable singalongs.

Book Today