The Albanese Government is making it mandatory for telcos to support customers struggling to pay their phone and internet bills, with new industry rules set to come into effect from Friday.

The Australian Communications and Media Authority (ACMA) developed the new Financial Hardship Standard at the Government's direction, replacing the rules on financial hardship contained in the Telecommunications Consumer Protections Code.

"Staying connected is an essential part of everyday life in 2024. That's why the Albanese Government is backing consumers who might be struggling to pay their internet or phone bills," said Minister for Communications, the Hon Michelle Rowland MP.

The new rules provide the ACMA with stronger enforcement powers to ensure telcos are meeting their obligations. Practical improvements include requirements to determine if a customer is experiencing financial hardship, greater promotion of financial hardship assistance information to consumers, and a mandate for telcos to offer customers at least six different options for assistance.

"These new rules will mean telcos have to do all they can to keep customers connected if they are experiencing financial hardship, with disconnection the last resort," Rowland said.

The safeguards cover goods and services provided by telcos, including mobile phones, mobile services, as well as internet and voice services used by individuals and small businesses.

"These are practical and common-sense solutions, and is just one of the ways the Albanese Government is supporting families with cost-of-living pressures," Rowland said.

The Government first announced its intention to introduce the new rules last year.