Want to get a mobile on a plan, but don't want to get locked in with your device? We get it. There are exciting new handsets hitting the market every other month now, and the innovations show no sign of slowing down. Committing to a phone for a whole two years can feel like way too long.
If you want a phone plan that will let you upgrade before your 24 months is up, Telstra used to offer two options: a handset lease, or what it calls "New Phone Feeling".
However, on June 25, 2019 Telstra stopped selling mobile leases. If you signed up to a lease before that date, your contract is still valid and you can still upgrade after 12 months. But if you're signing up to a Telstra plan today, your only upgrade option in the future will be New Phone Feeling. In this guide we'll cover:
- What is Telstra's New Phone Feeling?
- Is New Phone Feeling good value?
- What is the New Phone Feeling fine print?
Or if you want to read about Telstra's older lease plans, scroll on down.
Telstra New Phone Feeling
Telstra's "New Phone Feeling" is an option built into all new Telstra handset plans that allows you to upgrade your phone before you finish paying it off. You can also use New Phone Feeling to upgrade your tablet if you have it on a Telstra repayment plan.
Here's how New Phone Feeling works. You take up any of Telstra's mobile plans and add a handset to be paid off over either 24 or 36 months. In the final 12 months of your repayment plan, you can choose to either continue paying it off, or pay Telstra $149, return the phone (in "good working order"), and take up a new 24 or 36 month handset repayment plan.
You won't be charged any early exit fees by Telstra, beyond the $149, as all Telstra plans are now contract-free. You can leave at any time and pay nothing except the remaining value of your handset.
Here are the top 10 most popular handsets currently available through Telstra:
iPhone 18 Pro 256GB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro Max 256GB
- 6.9 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro 512GB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro Max 512GB
- 6.9 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro 1TB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro Max 1TB
- 6.9 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro 2TB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro Max 2TB
- 6.9 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 17 256GB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP
- Front Camera: 18MP
iPhone 17 Pro 256GB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
Is Telstra's New Phone Feeling good value?
If you want to upgrade your phone after 12 months, "New Phone Feeling" is a decent option. The alternative would be to pay out the remaining value on your phone and then sell it. If you're tossing up between these two options, there's an easy way to decide.
Find out how much you still owe on your current device, and then check its market value, in its current condition. Sites like Mazuma, Mobile Monster or Cashaphone will give you a clear idea.
You'll then want to calculate the difference between how much you still owe on your handset and how much you can sell it for. If you stand to lose $149 or more by selling, New Phone Feeling might be a good option for you. If you stand to lose less than that, or even make a profit, pay off your phone and sell it for as much as you can get.
There is a third option, of course, which is to simply continue with your existing handset's repayment plan. After all, the $149 is still an extra fee that you wouldn't pay if you just kept your existing device.
Telstra's New Phone Feeling: The fine print
There are some conditions you need to meet to take up Telstra's "New Phone Feeling" offer. The first is that you need to be on an eligible plan. Telstra says all postpaid phone plans include New Phone Feeling as an option.
You can only take up a New Phone Feeling upgrade in the final 12 months of your repayment plan. If you're paying off your phone over 36 months, that means you will have to wait 24 months before you can upgrade.
Your existing phone has to be in "good working order" when you return it. Telstra defines this as a phone that is "fully functional as intended and is not physically damaged, except for normal wear and tear". Normal wear and tear includes minor scratches and scuffs on the screen. Telstra has a complete guide to what it defines as "good working order" on its website.
Before you return your phone, you should also wipe all personal data, reset to factory settings and disable any security locks. Telstra can help you with this in store if needed.
Finally, you have to return your existing phone within 14 days of requesting to upgrade. You can return it to a Telstra store or request a reply paid satchel over the phone or online. In the meantime, you just start your new phone repayment plan. The $149 will appear on your next Telstra bill.
Telstra smartphone leases
You can no longer lease new phones from Telstra. However, if you are already in a lease contract, know that it's similar to signing a 24-month contract, except you're not buying the phone and you have a built-in option to upgrade.
After 12 months, you'll be given the option to pay $99 and upgrade your phone and start on a new contract. Or you can wait until 18 months and pay $0 to upgrade. Or you can continue until the full 24 months has expired. At that point you either return your phone or buy it at "fair market value". This buy-out amount will differ depending on the handset you have.
If you're having trouble deciding, you can continue your lease for another 6 months beyond the original contract, but sooner or later, you'll have to return it or pay for it.
Telstra lease issues to be aware of
If you have a current phone lease with Telstra, be aware that as you don't own your phone, you'll need to return it to Telstra at the end of your contract in good working order. This means it must be fully functional and have no physical damage beyond ordinary wear and tear.
If your phone is damaged, you could find yourself paying up to $499 to Telstra in damage fees when it comes time to return or upgrade. If you don't already have a case for your phone, it could be well worth investing in one.
On top of potential damage fees, if you want to leave your plan early for any reason other than upgrading, you'll either be charged a cancellation fee or you may have to buy your phone from Telstra.
Jacqui Dent
Editorial Strategist
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