Kmart Homemaker Pod Coffee Machine (Nespresso compatible) - $89
This is one of the cheapest compatible Nespresso Coffee Machines ones I have seen in Australia, especially when you don't need to pay for postage.
You can now get Nespresso compatible pods from Officeworks, www.espressoland.com.au (made in Italy approx. 77c ea including postage), Nespresso Stores (approx. 70 to 80c per pod), and on eBay. There are many varieties available. You can also buy reuseable (up to 30 times with average of 20 uses) pods and single use self-fillable pods.
This Nespresso compatible coffee machine is supplied and manufactured by a third party that is not affiliated or associated with Societe Des Produits Nestle SA or Nespresso. This Nespresso compatible coffee machine is not sponsored or endorsed by Societe Des Produits Nestle SA or Nespresso. Nespresso pod capsules can be used in this coffee machine and can be purchased online from Nespresso at http://www.nespresso.com or at Nespresso boutiques throughout Australia & New Zealand. The Nespresso trademark is owned by Societe Des Produits Nestle SA and is used herein in a descriptive capacity only.
1 kg of coffee beans yields 66 cups (based on a 15g per shot). eg Coffee beans $40/kg = 60c per cup
So you could actually save some money if you can buy a pod for under 60c each !! Look around eBay and buy in bulk, you can get pods for as low as 30c each including delivery.
If you want a pod machine with a milk frother $249 - http://dicksmith.com.au/product/HS3006/coffee-machine-with-milk-frother-ndash-compatible-with-nespresso-trade from Dick Smith (this machine looks exactly like the Kmart unit)