Court finds against Telstra Super on IDR

Mike Taylor

Managing Editor and Publisher

7 May 2026

Telstra Super has been found guilty in the Federal Court of having failed to comply with its internal dispute resolution procedures.

The fund, now known as Tetra Servicing Pty Ltd, was found by the Federal Court to have failed to respond to about one third of the relevant complaints made between 22 October 2021 and 13 January 2023 within the mandatory 45-day timeline.

Telstra Super has subsequently merged with Aware Super.

It was found that in about 30% of those cases, Telstra Super provided its response more than 100 days after it had received the complaint.

The charges against the fund were initiated by the Australian Securities and Investments Commission (ASIC) but the court did not find against the fund with respect to failing to do all things necessary to deliver financial services efficiently, honestly and fairly. Nor did it find that the fund to adequately resource its internal dispute resolution process.

Commenting on the outcome, ASIC deputy chair, Sarah Court said it was unacceptable that such a high percentage of complaints were mishandled, with many members left in the dark about the reasons behind these delays, further compounding their frustration.

“This outcome sends a clear message that compliance with mandatory internal dispute resolution standards is not optional, but a legal obligation,” she said.

The proceedings against Telstra Super are the first ASIC has brought under the internal dispute resolution requirements, which came into effect in October 2021. Under the requirements, superannuation trustees must respond to most complaints within 45 days.

“This case provides useful guidance and confirms the enforceability of these obligations which are designed to uplift the behaviour of the financial services sector and ensure that consumer protection standards are upheld across the board,’ Court said.