Australia toughens telco penalties to $10 million for misleading customers

Summarised from 2 outlets · Updated 16 Oct, 10:32 · Archive

Australia has increased maximum penalties for telecommunications companies breaching industry codes from $250,000 to more than $10 million.

The Australian federal government has passed changes to the Telecommunications Act that increase maximum fines for telcos breaching industry codes from $250,000 to more than $10 million. The amendments also give the Australian Communications and Media Authority stronger powers to take swift action against breaching companies. Under the new regime, fines will be based on the value of the benefit obtained from the breach or the turnover of the offending telco.

Communications Minister Anika Wells said the law establishes clear rules for how telcos must support their customers, particularly those experiencing financial hardship or domestic, family and sexual violence. The government stated the bolstered penalties are aimed at telcos that have previously treated penalties as the cost of doing business.

The legislation also establishes a carriage service provider registration scheme to increase telco accountability and enable the authority to stop non-compliant providers from operating. The new laws followed breaches by Telstra and Optus, the nation's two largest telecommunications companies. A Federal Court ruled that Telstra made false or misleading claims about its upload speeds in 2025. Optus Mobile admitted to engaging in unconscionable conduct when selling services to hundreds of consumers following court action led by the Australian Competition and Consumer Commission. In July 2026, Telstra experienced a nationwide mobile outage that left users unable to make calls or access data, while some EFTPOS transactions were also affected.

How it is being reported

• Telcos face stiffer penalties for misleading customersThe federal government has given the communications watchdog a bigger bark in a bid to crack down on dodgy telcos.Perth Now · 16 Oct, 09:59
• Telcos face stiffer penalties for misleading customersThe federal government has given the communications watchdog a bigger bark in a bid to crack down on dodgy telcos.The West Australian · 16 Oct, 09:59

In this story: Australian Communications and Media Authority · Anika Wells · Telstra · Optus · Australian Competition and Consumer Commission · Australia

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