What is an early termination fee? | ACMA

What is an early termination fee?

When you enter into a contract for a telecommunications product or service, you often agree to pay an early termination fee if you break your contract or service agreement before the end of the contracted time period.

Early termination fees often apply to contracts for post-paid, fixed-term mobile and broadband services, particularly when the contract involves subsidised equipment charges.

If you want flexibility and wish to avoid these fees, you can often buy the equipment and/or use a pre-paid service with no contract.

The amount of early termination fees varies. Some fees may be based on the amount of time left on your contract when you cancel while other fees may be fixed.

You will receive a Critical Information Summary when you buy a telecommunications service. This will describe the maximum early termination you buy a telecommunications service. This will describe the maximum early termination fee payable. The detailed terms for early termination fees will be stated in your contract.



Last updated: 15 September 2016