Phone and Internet Bills

We’ve all become so dependent on phones and internet, it’s almost impossible to think about life without them. If you’re having difficulty paying your bill, or you’re concerned about being disconnected, don’t sit and worry, take action. Phone and internet service providers are obliged to help people in financial difficulty, so get in touch.

COVID-19 Changes: The pandemic may mean there are more flexible repayment arrangement available for people in financial difficulty. There are also additional protections to stop disconnection. For more information see COVID-19 changes: utilities, telcos and rates

Steps to take if you’re struggling to pay a phone or internet bill


Work out what you can afford to pay

If you’re struggling to pay back money you owe, the first thing to do is to work out what you can actually afford to pay by doing a simple budget. How to work out what you can afford to pay.

If you can afford to pay something
Start paying the amount you can afford and get in touch with your creditor straight away to put a repayment agreement in place.

If you can’t afford to pay anything
Call us on 1800 007 007 straight away for advice.


Contact your service provider

The sooner you contact your service provider, the better. They can make their services more affordable for you by offering options such as:

  • Changing your billing from monthly to fortnightly
  • Offering an instalment payment plan for outstanding bills
  • Allowing a delay on a payment
  • Restricting your access to more costly services (access to emergency services and the service provider’s enquiry line can’t be restricted)
  • Downgrading to a more affordable plan. Ask for the downgrade fee to be waived.
  • Returning your mobile phone to be released from the contract (there may be a termination fee)
  • Switching to a pre-paid mobile phone


Get started with a letter template (Word 28kb) and request hardship variation from your telco.


Ask to speak with the ‘hardship department’

If you feel the customer service department isn’t helping, or you are having long-term financial issues, ask to speak with the hardship department.

Be prepared before you contact them! Read about how to negotiate payment terms.


If you can’t agree, dispute it

If you can’t come to an agreement that you think is fair, you have a right to seek ‘external dispute resolution’ if it’s available in your state or territory. This free and independent service gives you an opportunity to explain how, by working with your lender, you can get back on track with payments. Refer to Dispute Resolution (Step 2).


Speak to one of our financial counsellors

If your problem still hasn’t been solved, or you’re feeling overwhelmed, call us on 1800 007 007 to speak with one of our financial counsellors.


Our tips

  • Don’t use your credit card to pay your bills – this will only add to your debt
  • Don’t be tempted to go to a payday (fast loan) lender. You could end up further in debt and in even more financial difficulty. Instead speak to your creditor to ask for hardship.


Been hit by a high mobile phone bill? Watch this video from the Australian Communications and Media Authority for some helpful tips on how to make the most of your phone and internet plan.

ASIC’s MoneySmart website also contains useful information about choosing a mobile phone plan.

What should I do if?

Can I be disconnected?

If you can’t pay your bill because of financial hardship, your home phone service provider can only disconnect you after they’ve done the following:

  • Advised you that they may disconnect your service if you don’t pay; and
  • Discussed your repayment options, and the services of financial counsellors and consumer advocates for managing debt; and
  • Given you at least seven days’ notice of their intention to disconnect your service; and
  • Advised you in writing that they plan to disconnect your service; and
  • Informed you of the earliest date that disconnection will occur.

What happens if I'm disconnected?

  • You usually have to pay a reconnection fee as well as the outstanding debt to restore your service. If you’re receiving Centrelink benefits, or are able to show other financial hardship, you can ask for the fee to be waived.
  • If you feel your provider has been unfair, or hasn’t fulfilled their disconnection requirements, you have a right to take it to dispute resolution.



If a door-to-door representative convinced you to sign a contract in your home, you may be able to cancel it.

If a door-to-door representative persuaded you to sign a phone or internet contract in your home, you may be able to cancel the contract:

  • During the 10-day “cooling off” period that applies for all contracts entered into in a home, or
  • If you’ve been misled by a high-pressure sales pitch that’s not true or they’ve falsely claimed the service would save you money. Remember to include cancellation fees from your old service provider when assessing a ”discount”.

If the service provider refuses to cancel the service, contact the Telecommunications Industry Ombudsman (TIO).


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