Federal Court ruling against Telstra Super a win for consumers 

Super Consumers Australia has welcomed the Federal Court finding that Telstra Super failed to meet mandatory complaint handling obligations, saying the decision sends a clear message that super funds must meet their basic responsibilities to members.

The Court found Telstra Super failed to respond to around one third of member complaints within the mandatory 45-day timeframe between October 2021 and January 2023, with many members left waiting more than 100 days for a response.

Super Consumers Australia CEO Xavier O’Halloran said the ruling was an important win for consumers and reinforced the need for stronger mandatory customer service standards across the super system.

“At an absolute minimum, Australians should be able to expect that super funds comply with existing mandatory standards like responding to complaints within 45 days,” Mr O’Halloran said.

“People are compelled to put their retirement savings into super. The least the system can do is make sure members aren’t ignored when something goes wrong.”

“This judgment confirms that timeliness matters. Consumers shouldn’t have to chase their super fund for months just to get a response to a complaint.”

Mr O’Halloran said the case was the latest in a growing list of failures across the super sector involving complaints handling, death benefits, insurance claims and customer service delays.

“We continue to hear from Australians who are stuck in bureaucratic limbo when they need help most — after losing a loved one, dealing with illness, or trying to access their own money,” he said.

“Super funds have repeatedly shown that voluntary guidance and vague expectations are not enough. The Government now needs to introduce mandatory customer service standards that clearly set out what Australians can expect from their super fund.”

Super Consumers Australia is calling for mandatory standards covering key member interactions, including complaint handling, communication with members, death benefit claims and insurance claims processing.

“ASIC taking enforcement action under the existing rules is welcome, but Australians deserve a system that prevents these failures from happening in the first place,” Mr O’Halloran said.

“Mandatory customer service standards would create clear expectations, transparency and accountability across the industry — and help restore trust in the super system.”