Julie Collins (Franklin, Australian Labor Party) Share this | Hansard source

I think it is really important that we in this place put on the public record our concerns about Telstra’s recent announcement that it will charge an administrative fee of $2.20 for each bill paid via mail or in person at a Telstra shop or an Australia Post outlet. From 14 September, anyone who chooses to pay their Telstra bill in person or even by mail will be charged $2.20 for each payment. I stand here tonight not on my own behalf but for the concerns I have received from my constituents, who are extremely angry and very upset about Telstra’s outrageous decision.

The question is: why should anybody, young or old, rich or poor, be penalised for wanting to pay their telephone bill? But the bigger issue that really stems from this administrative payment is its impact on low-income families and individuals. Those who can least afford it will be slugged an additional administrative fee for a communications service—a service that I consider to be a vital part of their day-to-day lives. This decision has broad consequences, not only across my electorate of Franklin but for every other electorate across Australia, where the low-income earners and working mums and dads will no longer have a range of payment options that are free from administrative fees.

When you consider the profit that Telstra has made over the past years, you have to question why it has introduced this $2.20 bill payment fee. Recent announcements about Telstra’s net profit in the last financial year state that it rose by 10.3 per cent to more than $4 billion. So we know this fee is not being introduced because Telstra is struggling. Those of us in this place know the history around Telstra’s journey to become the privatised company it is today. The decision to privatise was that of the former Howard government. Therefore, the current government has no ability to direct Telstra any longer.

In my home state of Tasmania this administrative fee is really going to affect a large proportion of consumers, because there are two significant consumer issues in Tasmania. One is that Tasmania has the lowest proportion of households with broadband of any state or territory—39 per cent, compared to the Australian average of 52 per cent. So the electronic options to pay your Telstra bills, which are exempt from the fee, are out of reach for so many Tasmanians.

The other issue in Tasmania is that Telstra has a very high market share, particularly in relation to landline services. The competition between telecommunication companies that we have on the mainland means that people have different options when it comes to service provision and customer care, but in Tasmania people find it much harder to vote with their feet and move between carriers and service providers because, when you look at the landline and mobile phone coverage in Tasmania, there are not exactly a lot of options. I know that many people living in rural and regional areas come across similar issues when it comes to competition. There is no market competition and people are forced to use the one company rather than have access to choice.

I do acknowledge that Telstra has exempted registered pensioners from this new administrative payment. However, when you consider the number of low-income earners and working families who will be charged this fee, particularly in the state of Tasmania, which has the highest proportion of people in receipt of government support payments, it is really unfair. I believe Telstra should reverse its decision. If we do not speak up now, we could very well see other companies following in the same footsteps as Telstra, conveniently charging fees for people who choose the normal day-to-day activity of walking into a shop or an Australia Post outlet, or mailing their bill. They will be slugged with an extra charge for doing so.

I hope that this private member’s matter is supported by both sides of the House. There is no doubt that this administrative fee will impact on many areas across Australia. It will mean that, if you do not have access to the internet to make electronic payments, you will be charged for paying your bill. If you read Telstra’s bill payment fee information, you will also be slugged more if you pay by credit card. I want to quickly read from this. If you direct debit from a credit card, you get an increased administration charge for processing credit card payments. A fixed direct debit from a credit card is the same. If you pay by phone with a credit card there is a higher percentage. For Telstra bills paid on the internet by credit card there is a higher percentage. If you pay by mail there is a $2.20 fee. If you pay in a Telstra shop by cash, cheque or EFTPOS there is a fee. If you pay in a Telstra shop by credit card there is a fee and the credit card fee—so two fees. If you pay in Australia Post by cheque, cash or EFTPOS there is a $2.20 fee.

Quite frankly, I think that this is a really bad decision. I want to take as much action as I can to try and get it reversed. I am writing to Telstra to see if it will review this harsh, unfair and unjust charge. I am writing to the Australian Competition and Consumer Commission to ask it to investigate the impact of this inequitable and unreasonable charge. I am also going to write to the Treasurer to ask him to see whether it is necessary to amend acts of parliament to ensure that Australians are able to make legal payments in legal tender, if they choose to, without any additional financial penalty, because I believe we should all be able to. (Time expired)

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