Telcos Fail to Support Australians in Financial Distress – Report Reveals

Australians experiencing financial hardship are being failed by telecommunications companies with many customers “one unexpected phone bill or life event away from falling into hardship” according to a new report released today by the Telecommunications Industry Ombudsman (TIO).

The report ‘Keeping connected: Experiences of telco consumers in financial hardship,’ reviewed over 900 complaints submitted to the TIO between April 2024 and March 2025, highlighting failures by telcos to adequately support consumers facing financial stress…

“Importantly, consumers told us about the stress they felt when seeking help. Some customer service staff made them feel belittled or guilty for requesting help. Some consumers also told us they chose to pay for their telco services over other essential items such as rent or food.”

However, some telcos rejected straightforward requests, such as short payment extensions or minor changes to payment plans.

Telco mistakes have also been exacerbating financial problems. Customers reported cases of providers withdrawing more money than agreed via direct debit or processing payments on incorrect dates, leaving them unexpectedly short on funds for essential living expenses.

Ombudsman Cynthia Gebert warned, “Insights captured in this report confirm telcos need to do more to meet their obligations and support people struggling financially, or they risk being part of the problem and causing further harm to people who are already at risk.”

Gebert added, “Access to phone and internet service should never be a luxury, it is an essential service that is vital to our everyday life. The consequences of losing access to your phone and internet can be serious, it can lead to people losing work and being unable to access critical support.”

Telcos acknowledged an increase in requests for financial hardship support in the past year, suggesting reasons included ongoing cost-of-living pressures and increased consumer awareness of the new financial hardship standards introduced in 2024.

This period marks the first full year since the introduction of the Telecommunications (Financial Hardship) Industry Standard 2024.  

Read the report here (PDF, 489KB)