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How to stick to budget when planning a kitchen renovation or remodel

A couple smile and laugh in their modern kitchen while cooking something with their toddler
RACV

July 25, 2025

Follow this guide for step-by-step advice on your next kitchen reno or remodel, from the planning stage to hiring professionals.

Renovating your kitchen can be an exciting yet challenging endeavour that promises to enhance not only the aesthetics, but also the functionality and value of your home. 

Much like planning a bathroom renovation, a successful kitchen transformation requires careful consideration, thoughtful planning, and collaboration with skilled and qualified professionals.

It's important to make sure your kitchen renovation is done to the best standard possible, or it could end up costing you more money.

Transform your kitchen into a stylish and functional space

Planning a new kitchen: A step-by-step guide

To remodel or renovate your kitchen?

Are you wanting to update your kitchen with a few cosmetic changes like new cupboards and tiling, or are you looking at a larger renovation?

A kitchen remodel is usually a smaller and less expensive job, with no changes to the location of the wiring, plumbing or general layout. In this case, you may be able to make it a DIY project.

But a kitchen renovation is another matter altogether, especially if it involves demolition of the existing kitchen. This may require changing doors, rewiring and plumbing, and new appliances. This will require the work of qualified professionals.

It's also important to understand that there are issues around safety, compliance with the building code and Australian standards, and that's why it pays to get expert advice.

More: Why it might be time to upgrade your appliances

Do your research

Start your kitchen remodel or renovation journey by clearly defining your vision and needs. Whether you're dreaming of a minor facelift or a complete upgrade, make sure you consider functionality as well as style. Lighting, ventilation, storage and having enough room to move around are all important considerations.

The fun part, of course, is deciding on the kitchen layout, design features, and colour schemes. You can get inspiration from magazines, home renovation shows, and other people's kitchens.

Assemble a mood board or save images of kitchens you love. This will help communicate your vision to designers and tradespeople. Be prepared for your vision to change along the way as practical decisions are made. A marble benchtop that stains easily may not work if you have young children or it might be too expensive.

Also check with your local council to confirm if need a building permit before starting your renovation. Also note, that if the total cost of your renovation project is more than $10,000, the builder must use a "major domestic building contract".

Establish your renovation budget

The kitchen is usually the most expensive room in the home to renovate, and the cost can vary dramatically depending on the size of the space, whether the kitchen layout is altered, and what materials are used. 

Setting a realistic budget is a critical aspect of any kitchen remodel or renovation project. Research the prices of cabinets, countertops, appliances, and lighting fixtures. Factor in labour, and potential extra costs. It’s important to allocate a buffer for unexpected expenses that may arise during the renovation process. 

Remember to budget for a professional if any plumbing or electrical work is required. If you're enlisting professionals to do the bulk of your renovation but still want to save money, doing the demolition work yourself can help reduce costs. However, take great care if demolishing walls or pulling up floors and make sure you understand which walls are load bearing, where electrical wiring and pipes are located, and if there’s any chance your home could have asbestos behind the plaster or under tiles. If in any doubt, revert to professional help.

 Tradie in the kitchen

Any renovation requiring plumbing or electrical work (like appliance installation) calls for a qualified professional.

Fine tune your kitchen layout and design

Begin by evaluating the space available in your kitchen and making sure your design is functional. Accurate measurements are crucial during this phase to ensure functionality and flow.

Consider the work triangle, which involves positioning the sink, stove, and refrigerator in a triangular formation to promote efficiency. While layouts such as U-shaped, L-shaped and galley kitchens are popular, think about how you'll use your kitchen every day, and what features are important to you, such as an island bench or pantry.

Innovative cabinetry

Cabinetry significantly contributes to the overall style and functionality of your kitchen. Regardless of whether you prefer a traditional, modern, or transitional look, remember to consider aspects such as storage needs, durability, and maintenance requirements.

Smart devices

Smart home devices can enhance the functionality, convenience, and value of your kitchen. Consider incorporating smart appliances, touchless faucets, or smart LED lightbulbs. These modern touches can help make everyday tasks more efficient.

Maximising the space

Consider ways to maximise the space, with storage solutions such as pull-out drawers, the use of vertical space for shelving, mounted racks and an organised pantry.

More: Nine sustainable kitchen renovation ideas

Get quotes from qualified tradespeople

The scope of your kitchen renovation will determine the expertise required, ranging from carpenters and electricians to plumbers.

Qualified tradespeople will be able to advise on whether your kitchen design is feasible and also give you quotes to help you determine the costs involved.

When comparing quotes, consider not only price, but the reputation, qualification, and licensing of the professionals that you consult.

More: How to choose a tradie

Design a space with your family in mind. Image: RACV

Creating a timeline of work to be completed can help ensure your renovations are carried out in a practical manner.

Accept quotes and create a timeline

Once you’ve accepted your quotes, create a timeline of works to be completed. Make sure to schedule tradespeople in a practical order.

All renos are different, but a suggested order of operations for a full kitchen renovation might be:

  • Demolition/structural work (knock down or construct walls, installation of doors or windows)
  • Rough-in work (the installation of all plumbing, electrical and gas supply lines and connections – you will need a licensed tradesperson to complete this work)
  • Walls and ceilings (plastering and painting, insulation if required)
  • Flooring
  • Cabinetry
  • Benchtop
  • Splashback
  • Appliance installation
  • Plumbing and electrical fittings (taps, lighting fixtures)
  • Finishing touches (cabinet handles, kickboards, paint touch-ups)

Complete and review

As tasks are completed, review them with your contractors (where applicable) to ensure the work is as expected.

If you're taking a DIY approach to any part of your renovations remember to priortise safety. This includes any job that requires working on a ladder. Then there are some jobs you should always call a tradesperson for. For example, you need a fully accredited, licensed and insured tradesperson for plumbing, gas and electricity jobs. Services such as RACV Emergency Home Assist can also help give you peace of mind.

Renovations can often take longer or cost more than initially outlined, so remaining flexible and communicating clearly and frequently with all involved parties is crucial to being happy with the end result.  

If you’re unhappy with how a particular task has been completed, discuss your options with your contractor. Many building inspectors also offer renovation inspections if you’d like further peace of mind that your new kitchen is safe and to code.  

Design a space with your family in mind. Image: RACV

Review your renovations as you go - you can also hire a professional inspector to review them for added peace-of-mind.

Update your home insurance

Following upgrades to the home, it is important to check your home insurance policy is up to date to help cover the cost of rebuilding and replacing your home and possessions to the same standard if a listed event occurs and causes damage.

Being underinsured can put you at risk of financial loss should an insured event occur. Simple measures, such as creating a home inventory and regularly reviewing your sum insured (especially after buying new goods or completing renovations) can help mitigate the risk of underinsurance. 

Your ultimate kitchen renovation checklist

  1. Decide between remodelling and renovating. 
  2. Reasearch. Clearly define your vision for your new kitchen. Consider both style and function. 
  3. Establish your budget. Account for materials and labour, with a buffer for unexpected costs.  
  4. Fine tune your kitchen design, considering the work triangle, space and appliances. 
  5. Get quotes from tradespeople. Ensure all tradies are qualified, licensed professionals with a reputation and price you are happy with. 
  6. Accept quotes and create a timeline of work to be completed. 
  7. Complete your kitchen renovation. Review with each tradesperson.  
  8. Update your home insurance to reflect your new kitchen and enjoy! 

Planning on updating your kitchen?

Get a quote from a trusted tradie near you

The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.

RACV Emergency Home Assist is an emergency home service product, separate to insurance, that is provided by Royal Automobile Club of Victoria (RACV) Ltd and not RACV Insurance Services Pty Ltd. It is a fast response service for common plumbing, electrical and locksmith emergencies, all for one annual fee. Up to 1 hour of labour, including minor parts and materials, is used to repair or make your home safe. Emergency Home Assist does not insure you against the costs of a home emergency and is not a home insurance product. Call outs are unlimited, subject to the fair use policy. Refer to the RACV Emergency Home Assist Terms and Conditions for more details.

RACV Trades is a trading name of RACV's trade partner, Club Home Response Pty Ltd (Victorian registered domestic building practitioner number CDB-U 100178). All works are performed or arranged by Club Home Response Pty Ltd. trading as RACV Trades. Read the RACV Trades Terms and Conditions.