Telstra Compensation Settlement

Without Prejudice
Following our discussion about your request for compensation on attached two options for your consideration.

Business Loss Claim
Telstra would like to resolve your claim without further delay, and on a basis that is acceptable to you and Telstra.We have reviewed your claim and are pleased to offer you a Customer Relations Payment in the amount of This offer is in full and final settlement of the claim and will remain open for acceptance for 7 business days from the date of this letter. If you wish to accept this offer, please complete the Settlement and Release Agreement provided. Please note that Telstra’s offer is not an admission that Telstra is liable in relation to any of the claims you make
in your compensation claim. We make this offer as a gesture of goodwill in recognition of the inconvenience caused to you.

Compensation Claim
Telstra’s internal compensation process was established to provide a forum to resolve disputes in a cost-effective way for both customers and Telstra. Telstra encourages customers to pursue any claims through the compensation process where they can substantiate that they have suffered financial loss as a result of any act or omission by Telstra. It is important that this process stands up to commercial scrutiny. Therefore, Telstra will only compensate claims which have been substantiated. Telstra must also be fully informed of all the facts surrounding the claim so that services to our valued customers may be improved. The Claim should be supported by evidence (i.e. fact based or independent). Give as much relevant and detailed information as you can. If you document your claim well; we can assess it more quickly and give you a speedier response.

If you are claiming loss of business, you should provide things such as:
• Monthly Profit and Loss statements as prepared for taxation purposes for the period claimed;three months prior to the period claimed; three months after the period claimed and the same period for the previous year (to provide a comparison).Note that if Telstra pays compensation, it does so on the basis of loss of gross profit i.e. revenue foregone less expenses that would have been directly incurred if you were able to generate that revenue foregone (such as cost of goods sold). We also take into account any expenses that you may have incurred in mitigating your loss (such as by using a mobile
phone).If you are claiming for expenses incurred, you should provide things such as:
Invoices and receipts from the suppliers you paid. These should be dated and should detail the type of
service or goods that were supplied;
• Evidence that the expenses relate solely to your service difficulties.
• Advertising – copies of and invoices for relevant advertising.

Your professional advisers (e.g. lawyer/accountant/telecommunications consultant) may be able to help you support
your claim. Should you wish to proceed with the formal loss of business process, please complete the attached Customer Compensation Form. This offer will remain open for acceptance for 30 business days from the date of this letter.

Payment of Telstra bills
Until your claim is assessed it is important to continue to stay up to date with your bills. Alternatively, we can arrange an extension to allow time for your claim to be processed. If you would like to arrange an extension of your bill due date, please contact 13 22 00 before the due date of your next bill. Failure to pay your Telstra bill may result in Telstra taking credit action to recover those unpaid charges. If you are disputing a charge on your Telstra bill, you do not need to pay that disputed charge until Telstra investigates and resolves the matter. You are however required to pay all other undisputed charges in your Telstra bill and failure to do so may result in credit action being taken.
Your other options
If you submit a claim, you can also pursue other options including legal action or asking the Telecommunications Industry
Ombudsman to consider your complaint.
If you have any questions, please don’t hesitate to contact me on
during business hours and quote your
reference number

IT IS AGREED
1. Without admitting liability, Telstra has offered to pay you the Settlement Amount in full and final settlement of any claim you have, or may have, against us in respect of the Event. The Settlement Amount will be paid to you within 30 days of Telstra receiving a signed copy of this Settlement Agreement from you.
2. Because we are paying you the Settlement Amount, you:
a) withdraw all claims you have against us in relation to the Event;
b) will not make any further claim against us in relation to the Event; and
c) will keep this Agreement and the Event confidential except if necessary, to obtain confidential legal or accounting advice, or if you are required to do so by law.
3. You confirm you know no other party who intends to make a claim against us in relation to the Event or who has a claimable interest in the Event.

In the Claim, you say that you suffered loss because of the Event delay in connecting your Services during the Relevant Dates

Settlement Amoumt
One thousand and five hundred dollars only ($1,500.00).

Customer Compensation Pack
Customer Guidelines
Here are some guidelines to follow so that you can provide us with the information we need to assess
your claim.
A: What should my Compensation Claim be based on? If you are making a claim for business loss, you will need to provide information and documentation to
calculate loss of gross profit.
Loss of gross profit is calculated as follows:
 Revenue foregone during the period when you allege we were at fault less
 Expenses that would have been directly incurred if you had been able to generate the
revenue that was foregone (these are referred to as expenses saved in the claim form).
You will incur certain costs irrespective of any alleged problem with our services. These costs are not
relevant to the calculation of your claim, and we don’t subtract them from your revenue forgone.
These costs include renting your business premises, lighting and heating or cooling the premises, and
depreciating furniture and fittings.
Revenue Forgone
The revenue foregone during the period when you allege we were at fault is the total revenue that
would have been earned without the fault less the revenue that actually was earned.
Less Expenses
The expenses that you would have directly incurred if you had been able to generate the revenue that
was foregone include:
 The cost of goods that would have been sold (including commission on those goods)
 The costs associated with any additional labour that would have been required to generate
that revenue (including costs like superannuation payments and worker’s compensation
levies)
 Other incidental costs associated with the sales that would have been made, such as
packaging, freight, electricity, or fuel to run machinery, a proportion of machinery
maintenance charges.
B: What does Telstra need to know when assessing my claim?
You need to describe any actions you took to overcome the problem. You can claim expenses
incurred to reduce your losses if they were over and above your normal expenses.
1. Did you explore alternatives to the affected telephone/s such as:
 Other phone lines where more than one was available,
 A fax line, a public phone, or a mobile phone, or
 Accessing the internet via a wireless modem or an internet cafe?
2. If you had to use a mobile phone because your normal service was not working, you can only
claim the difference between the cost of calls from your mobile phone and the cost of the calls if
they were made from your normal service.

3. Were there ways of reducing loss of profit, such as additional promotional activities, telling your
customers of the fault or employing additional temporary staff?
C: Costs & Losses which are not claimable
We do not compensate you for:
 Your costs in preparing your claim (including professional fees)
 Your costs in contacting us to report a fault
 Any goodwill that you claim that you have lost
 Pain of mind and suffering and other intangible claims
D: Do I need to provide supporting documents?
You need to support the loss you claim with fact-based material. If you give as much relevant and
detailed information as you can, we can assess your claim more quickly.
1. For loss of gross profit, you can substantiate revenue that should have been earned by referring
to past sales records or tax returns and the associated Profit and Loss Statements and Taxation
Assessment Notices. If the claim period is less than one year, you need to take into account
seasonal fluctuations in earnings and demonstrate which months would be expected to earn the
greatest revenue.
2. The actual revenue earned should also be substantiated with reference to sales records or tax
returns and the associated Profit and Loss Statements and Taxation Assessment Notices.
3. For expenses incurred to reduce your loss, you should provide things such as:

Invoices and receipts from the suppliers you paid (these should be dated and should detail
the type of service or goods that were supplied)
 Bank statements (proof of cash payments)
 Daily cash payments journal, and
 Evidence that the expenses relate solely to your service difficulties.
E: What happens next?
When we receive your completed claim form, we will review and investigate your claim. If we offer topay you compensation, we will make it without prejudice. This means that you will not be able to disclose
the offer to a court if you choose to reject the offer and take legal action. We may also ask you to sign
a release agreement before we pay you compensation.