The government has announced a new Industry Standard on Financial Hardship that will prioritise keeping customers connected and make it mandatory for telcos to provide financial hardship assistance to those struggling to pay their internet and phone bills.
The new rules are set to take effect from March 29, 2024.
With the new standard, the Australian Communications and Media Authority (ACMA) will have greater oversight to ensure that telcos are assisting customers.
ACMA's Financial Hardship report from May 2023 found that 2.4 million Australian adults experienced financial difficulty or concerns relating to their telco bill in the twelve months before. However, the same report found that as of June 30, 2022 only 4,338 had financial hardship arrangements with their telco.
ACMA Chair Nerida O'Loughlin said “These new rules address a range of identified gaps in financial support for telco consumers. Telcos must do a better job of identifying those in need of payment assistance and provide a stronger range of support options."
“Telecommunications services are essential to everyday living and at a time when a lot of Australians are doing it tough, it’s important customers are provided with real support to keep their services connected.”
What are the new telco rules regarding financial hardship?
There are four main protections replacing and updating those set out in the Telecommunications Consumer Protection Code including:
- Expanding the definition of financial hardship to capture a broader set of circumstances. This is to help both telcos understand when assistance should be made available and help consumers understand when they are eligible
- Telcos must better promote the availability of hardship assistance including providing direct information to customers and potential customers who are already or may experience difficulty paying their telco bills
- Telcos will be required to offer at least six different options for assistance in paying bills. This can include payment plans and options to defer or extend payment
- Better protections for customers facing credit management action. This includes tougher requirements being met before a customer can be disconnected and extending the disconnection notice period from 5 to 10 working days
CEO of More and Tangerine, Andrew Branson, was supportive of the new standard.
“We recognise the importance of telecommunications in modern society, ensuring Australians remain connected to family, friends, work and essential services," said Branson.
"We are supportive of the additional assistance measures that will be available to customers under the new Telecommunications (Financial Hardship) Industry Standard 2024. The new Standard comes into effect on 29 March 2024, and we are currently making changes to our existing financial hardship processes and policies to meet this timeline. Information about our updated financial hardship assistance program will be available on our websites in late March.”
You may be able to find another plan for less
The new rule changes will help struggling customers meet their payment obligations but it's also a good reminder to shop around and find a saving.
Depending on the type of mobile or internet plan you're on it's unlikely that you have a lock-in contract. This means you can switch to a cheaper plan with the same provider or another at any time.
If you're struggling to pay your telco bills, you don't need to wait for the new rules to come into effect you can contact your phone or internet service provider today to learn what financial hardship policies may be available to you.
Dylan Crismale
Digital Content Editor
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