Report reveals hidden Telstra tax, adds nearly $1000 for premium users
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Are you one of the millions of Aussies who stick with Telstra for your phone or internet, thinking you’re getting the best of the best?
You’re not alone—but a new report suggests you might be paying a hefty 'Telstra tax' for the privilege, and it could be costing you up to $1000 more each year compared to the cheapest options on the market.
Let’s break down what’s going on, what you’re paying for, and whether it’s worth it—or if it’s time to shop around.
The term 'Telstra tax' has been coined by consumer advocate Joel Gibson, who has made a career out of helping Australians slash their bills.
According to Gibson’s latest analysis, Telstra customers are forking out between $300 and $400 extra per device or service compared to the most budget-friendly plans available.
When you add up a household’s internet, mobile, and phone services, that premium can easily top $1000 a year.
Gibson’s research, done in partnership with telco comparison site WhistleOut, compared Telstra’s prices (including the upcoming July 1 price hikes) with the cheapest plans on the market.
The result is Telstra’s standard NBN plan alone will soon cost $408 more per year than Exetel’s, a budget provider that, according to recent government testing, actually offers faster download speeds (though you’ll need to buy your modem).
Despite the price difference, Telstra remains Australia’s biggest telco, with millions of loyal customers.
Why? For many, it comes down to coverage and reliability—especially in regional and remote areas.
Telstra’s network reaches more of Australia than any other provider, and for those who live outside the big cities, that can be a dealbreaker.
Telstra also offers some unique features, like their new Satellite Messaging service, which lets customers send and receive texts from almost anywhere in Australia—even where there’s no mobile coverage.
This is only available to customers on Telstra’s Upfront Mobile Plans, and it’s a big selling point for those who travel or live off the beaten track.
Unsurprisingly, Telstra isn’t thrilled about the 'tax' label. A spokesperson for the company said, 'There is no ‘tax’. More customers choose Telstra because they see the benefits of being with us.'
They point out that Telstra invests heavily in its network, offers a wide range of products, and provides a value proposition that’s different from its competitors.
It’s also worth noting that some budget providers—like Belong, Aldi, and Woolworths Mobile—use the Telstra Wholesale Mobile Network, which only covers part of the complete Telstra network.
So, while you might save money, you may not get the same level of coverage or access to premium features.
From 1 July, most Telstra phone, data, and internet plans will increase by $3 to $5 per month.
The cheapest mobile and internet contracts, as well as pre-paid phone plans and 5G home internet, will remain at the same price (for now).
But with NBN Co also raising its wholesale prices by 3 per cent this financial year, other providers will likely follow suit.
For some, the answer is a resounding yes—especially if you rely on Telstra’s superior regional coverage or need features like satellite messaging.
For others, especially those in metro areas with good coverage from other providers, the extra cost might not be justified.
It’s also important to remember that the cheapest plans often come with fewer bells and whistles.
You might have to pay for your own modem, deal with less responsive customer service, or miss out on certain features.
But if you’re looking to save money and don’t need all the extras, it could be worth making the switch.
To save on your telco bills, it's essential to compare plans regularly using sites like WhistleOut or Finder to ensure you're getting the best deal.
Consider what you actually need—choosing a budget provider without premium extras could lead to significant savings.
Don’t hesitate to negotiate with your current provider, as simply asking might result in discounts or added benefits.
Bundling services such as mobile and internet can also unlock extra savings with specific providers.
The so-called 'Telstra tax' is real for many Aussies, but whether it’s worth paying depends on your needs and where you live.
If you value top-notch coverage and premium features, Telstra might still be the best choice for you.
But if you’re looking to save, it’s never been easier to shop around and find a plan that fits your budget.
Have you stuck with Telstra for years, or have you made the switch to a cheaper provider? What’s your experience been like? Share your thoughts and tips in the comments below—we’d love to hear from you!
You’re not alone—but a new report suggests you might be paying a hefty 'Telstra tax' for the privilege, and it could be costing you up to $1000 more each year compared to the cheapest options on the market.
Let’s break down what’s going on, what you’re paying for, and whether it’s worth it—or if it’s time to shop around.
The term 'Telstra tax' has been coined by consumer advocate Joel Gibson, who has made a career out of helping Australians slash their bills.
According to Gibson’s latest analysis, Telstra customers are forking out between $300 and $400 extra per device or service compared to the most budget-friendly plans available.
Up to $1000 extra each year has been paid by Aussies for Telstra’s premium services, according to consumer advocate Joel Gibson. Credit: YouTube
When you add up a household’s internet, mobile, and phone services, that premium can easily top $1000 a year.
Gibson’s research, done in partnership with telco comparison site WhistleOut, compared Telstra’s prices (including the upcoming July 1 price hikes) with the cheapest plans on the market.
The result is Telstra’s standard NBN plan alone will soon cost $408 more per year than Exetel’s, a budget provider that, according to recent government testing, actually offers faster download speeds (though you’ll need to buy your modem).
Despite the price difference, Telstra remains Australia’s biggest telco, with millions of loyal customers.
Why? For many, it comes down to coverage and reliability—especially in regional and remote areas.
Telstra’s network reaches more of Australia than any other provider, and for those who live outside the big cities, that can be a dealbreaker.
Telstra also offers some unique features, like their new Satellite Messaging service, which lets customers send and receive texts from almost anywhere in Australia—even where there’s no mobile coverage.
This is only available to customers on Telstra’s Upfront Mobile Plans, and it’s a big selling point for those who travel or live off the beaten track.
Unsurprisingly, Telstra isn’t thrilled about the 'tax' label. A spokesperson for the company said, 'There is no ‘tax’. More customers choose Telstra because they see the benefits of being with us.'
It’s also worth noting that some budget providers—like Belong, Aldi, and Woolworths Mobile—use the Telstra Wholesale Mobile Network, which only covers part of the complete Telstra network.
So, while you might save money, you may not get the same level of coverage or access to premium features.
From 1 July, most Telstra phone, data, and internet plans will increase by $3 to $5 per month.
The cheapest mobile and internet contracts, as well as pre-paid phone plans and 5G home internet, will remain at the same price (for now).
But with NBN Co also raising its wholesale prices by 3 per cent this financial year, other providers will likely follow suit.
For others, especially those in metro areas with good coverage from other providers, the extra cost might not be justified.
It’s also important to remember that the cheapest plans often come with fewer bells and whistles.
You might have to pay for your own modem, deal with less responsive customer service, or miss out on certain features.
But if you’re looking to save money and don’t need all the extras, it could be worth making the switch.
To save on your telco bills, it's essential to compare plans regularly using sites like WhistleOut or Finder to ensure you're getting the best deal.
Don’t hesitate to negotiate with your current provider, as simply asking might result in discounts or added benefits.
Bundling services such as mobile and internet can also unlock extra savings with specific providers.
The so-called 'Telstra tax' is real for many Aussies, but whether it’s worth paying depends on your needs and where you live.
If you value top-notch coverage and premium features, Telstra might still be the best choice for you.
But if you’re looking to save, it’s never been easier to shop around and find a plan that fits your budget.
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