SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

Date: For the period ending 209 ~~April~~June 2005

TELSTRA CORPORATION LIMITED

ACN 051 775 556

242 Exhibition Street
Melbourne Victoria 3000
Australia

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.


Form 20-F þ				Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934


Yes o				No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

TABLE OF CONTENTS


Underlying Sales Drivers — 9 months to March 05
Broadband Lift Off
What Broadband is Enabling in the Digital Home
Wireless & Mobility Expansion
What Device Options Are There?
Sensis — a clear strategy for growth
PSTN Portfolio
Future Network Evolution
Revenue and Margin Performance
End to End Process Simplification
Target Financial Parameters
Effective Capital Management
Our Strategy
An Integrated IP Future
Our Strategy
Broadband Lift Off
FOXTEL — a key asset in a changing landscape
Wireless & Mobility Expansion
Sensis — a clear strategy for growth
PSTN Voice – managing the migration
Underlying Sales Drivers – 9 months to march 05
Revenue and Margin Performance
End to End Process Simplification
Target Financial Parameters
Effective Capital Management
Mobiles Metrics
Customer view of technology
Customer view of market
Market success factors
Customer Segmented Operating Model
Wireless success is underpinned by channel strength
Wireless & Mobility Expansion
Business and Government — national coverage for national clients
i-mode delivered eight key benefits
The i-mode holistic business model develops a sustained eco-system
CSL investment provides in-house 3G experience
CSL – a 3G launch case-study for Telstra
Four Key Points
There’s more to CS than search engines
A valuable business driver
An infant, not a grown up
Sensis’ network is well placed to succeed
Sensis’ network is well placed to succeed
SIGNATURES

INDEX

Telstra ~~updates~~credit ~~shareholders~~rating onoutlook ~~future~~John ~~changes~~Stanhope’s presentation to ~~accounts~~Macquarie ~~REACH~~Securities ~~Operating~~20th ~~Model~~Anniversary ~~Broadband~~Conference ~~Milestone~~Telstra ~~for~~announces ~~BigPond~~plan to issue a €1 billion Eurobond during June John Stanhope’s presentation to ABN AMRO Communications Conference Mike Robey’s presentation to Citigroup Wireless Conference Bruce Akhurst, CEO, Sensis Pty Ltd – presentation to UBS Media Conference Telstra Corporation Limited ~~04/05~~appoints ~~Third~~Chief ~~Quarter~~Executive ~~Market~~Officer ~~Update~~Telstra Corporation Limited – CEO Contract

(TRLSTRA LOGO)

Media Release


4 May 2005		Office of the Company Secretary

The Manager
Company Announcements Office Australian Stock Exchange 4^th Floor, 20 Bridge Street SYDNEY NSW 2000		Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Telephone 03 9634 6400 Facsimile 03 9632 3215

6ELECTRONIC ~~April 2005 131 / 2005~~LODGEMENT

~~Telstra~~Dear ~~updates~~Sir ~~shareholders~~or ~~on future changes to accounts~~Madam

Telstra ~~today~~credit ~~undertook~~rating ~~a shareholder education initiative to raise awareness of future~~outlook ~~changes and impacts on Telstra’s financial statements as a result of the move to the Australian~~ ~~equivalents of International Financial Reporting Standards (A-IFRS) from 01 July 2005.~~

~~Speaking~~Standard ~~at a financial market~~ and ~~media~~Poors ~~briefing~~today ~~Telstra~~announced ~~Chief~~that ~~Financial~~it ~~Officer,~~has Mrchanged ~~John Stanhope,~~Telstra’s ~~said~~credit ~~the briefing would reduce confusion by clearly distinguishing between A-IFRS-related~~rating ~~changes~~outlook ~~in reported financial results and those that arise~~ from ~~changes~~“A+ instable” ~~the~~to ~~underlying~~“A+ ~~business~~negative outlook”.

~~“A-IFRS~~While ~~will~~this ~~not~~means ~~significantly~~that ~~affect~~Standard ~~net~~and ~~cash~~Poors’ ~~flow,~~basic ~~our~~rating ~~ability~~of toTelstra ~~borrow~~at ~~funds~~A+ does not change, orit ~~our~~does ~~dividends capacity.~~indicate ~~There~~that ~~will~~in beStandard noand ~~change~~Poors’ toview ~~our~~the ~~previous~~environment ~~commitments~~in ~~and~~which noTelstra operates ~~change~~is topotentially ~~returns~~more open to ~~shareholders,~~ negative events than when the “A+ stable” Mrrating ~~Stanhope~~was originally ~~said~~established.

~~“While~~It ~~earnings~~is ~~may~~important beto ~~more~~note ~~volatile~~that ~~through~~this is not a credit rating downgrade. It is an adjustment in the ~~application~~credit ofrating outlook generated by the ~~new~~more ~~standards,~~uncertain ~~net~~environment ~~cash~~in ~~flow~~which Telstra is ~~would~~operating. beThere ~~unaffected~~is no doubt that the regulatory environment in which Telstra operates is undergoing a period of intense focus.”

InImportantly, ~~February 2003~~ Telstra ~~established~~is awithin ~~project~~the ~~team~~target ~~led~~ranges byfor ~~Telstra’s~~its ~~Director,~~key ~~Business~~financial ~~and Finance Services~~parameters, including Mrdebt ~~Geoff~~servicing ~~Nicholson~~levels, togearing ~~manage~~levels ~~the convergence to A-IFRS~~ and ~~Telstra’s~~interest ~~first set of A-IFRS financial statements for the half year ended 31 December 2005~~cover.

MrTelstra ~~Stanhope~~remains ~~said~~committed ~~the~~to ~~project~~maintaining ~~schedule~~strong ~~was~~financial onparameter ~~track~~settings ~~and had identified significant changes~~ in ~~policy~~the ~~across:~~interests ~~share-based payment (AASB 2); business combinations (AASB 3); income taxes (AASB 112); employee benefits (AASB 119); borrowing costs (AASB 123); impairment~~ of ~~assets~~its ~~(AASB 136); and~~customers, ~~financial~~ ~~instruments~~shareholders ~~(AASB 132~~ and ~~139)~~employees.

AsYours ~~part of the move to raise awareness of A-IFRS Telstra had included the known estimable~~sincerely ~~transition impacts of adopting A-IFRS in Note 1 to the 31 December 2004 half-year financial~~ ~~statements. This note discussed in detail each adjustment that is likely to be made and whether it~~ was a mandatory adjustment, or an election made under the standards. The Company has estimated a net reduction to retained earnings of $907 million if the transition date is 1 July 2003 or $852 million if the date is 1 July 2004.

-s- Douglas Gration

~~This~~Douglas ~~net reduction to retained earnings is to adjust the financial statements to reflect the~~Gration ~~position~~Company ~~had Telstra always been applying A-IFRS. Telstra provided the impact at both dates to~~Secretary ~~comply with US Securities and Exchange Commission requirements to provide two years of comparative~~ ~~information. The SEC has proposed relief from this requirement for foreign registered companies,~~ ~~however a final ruling has yet to be released.~~

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556

-Telstra 2- Corporation Limited Macquarie Securities 20th Anniversary Conference

There are also some technical aspects of the income taxes standard that are the subject of further clarification as to how they will apply to Telstra. These matters have been referred to the Australian Accounting Standards Board (AASB) and the International Interpretations body for consideration. Finalisation of these matters could give rise to further transitional adjustments.

To provide an indication of the ongoing impact of A-IFRS on Telstra’s results, the 31 December 2004 half-year Income Statement has been restated to take account of the known A-IFRS changes. At this stage the main effects on the 31 December 2004 half year Income Statement is to increase net profit attributable to shareholders by $54 million.

This excludes any potential impact of the financial instruments standard, which will be applied from 1 July 2005. The main contributors to the increase in net profit under A-IFRS were:

§ Lower EBITDA attributable to an increase in total expenses due mainly to additional labour expense from the recognition of Telstra’s defined benefit schemes, partially offset by the benefit arising from the change in treatment for share-based payments; § Lower depreciation expense due to Telstra’s election to cease capitalising interest on capital projects. Amortisation is also reduced due to the cessation of amortisation of goodwill under A-IFRS; § Higher EBIT due to the benefit arising from depreciation and amortisation, which exceeds the additional expenses referred to above; § Interest costs increase due to the cessation of capitalising interest; and § Income tax expense decreases mainly due to the change in income tax methodology to the balance sheet approach. In addition, the cessation of goodwill amortisation, which is not subject to tax, has a favourable impact on tax expense.

These factors all contribute to an improvement in net profit after tax under A-IFRS for the half-year ended 31 December 2004.

The main impact of the new accounting standards on the Balance Sheet is a reduction in net assets mainly reflecting the transitional adjustments. The adjustments will be:

§ Reduction in property, plant and equipment balance due to Telstra electing to expense borrowing costs as incurred, rather than capitalising a portion to capital projects to be included in depreciation in future periods. Due to this election, it is necessary to reverse previously capitalised borrowing costs still to be amortised on adoption of A-IFRS; § An additional asset is to be recognised for the net asset position of the defined benefit schemes; § Reinstatement of equity accounting against the capacity prepayment asset, which is deemed to be an extension of an investment under A-IFRS. The increase in the deemed investment balance is, however, absorbed by the carried forward losses not previously recognised. This reduces the capacity prepayment balance to nil as part of the transition to A-IFRS;

Telstra Corporation Limited ABN 33 051 775 556

- 3 -

§ A reduction in goodwill to reflect the adoption of an option to reset overseas goodwill balances, related to foreign controlled entities, from being denominated in Australian dollars to the applicable foreign currency at the original date of acquisition; § Additional deferred tax liabilities due to the tax effect of other A-IFRS standards, and the change in method of accounting for income taxes from an income statement approach to a balance sheet approach, resulting in items not previously required to be recognised now being booked; and § Reduction in receivables and share capital for the consolidation of the employee share plan trusts and the treatment of employee share loans as options. Companies that have established employee benefit trusts must determine whether they control these entities. Under Australian Generally Accepted Accounting Principles (AGAAP) Telstra does not have control, however under A-IFRS it is considered to have control and hence must consolidate these entities.

On the Statement of Cash Flows there is a minor impact as most of the changes brought about by the move to A-IFRS do not have any cash implications. Free cash flows increase mainly due to borrowing costs being reclassified from operating to financing activities, and bills of exchange being reclassified from financing to investing activities.

The information contained above should be considered as preliminary and remains subject to change. This information has been calculated based on A-IFRS standards and currently available interpretations as at 1 March 2005. Telstra’s external auditors have reviewed the transitional adjustments included in the half-year financial report. The restated information for the six months to 31 December 2004 is unaudited.

Telstra Media Contact Kerrina Lawrence Telephone: 03 9634 5611 Mobile: 0419 352 313

(The slide pack that accompanied the media/analyst briefing can be located at http://www.telstra.com.au/communications/calendar/calendarevent.cfm?ObjectID=821

Telstra’s national media inquiry line is 131639 and the Telstra Corporate Communications Centre is located at: www.telstra.com.au/communications/media/index

Telstra Corporation Limited ABN 33 051 775 556

Telstra Corporation Limited

Transition to A-IFRS

John Stanhope

Chief Financial Officer

“A changing landscape” Page 1

~~Cautionary~~Underlying ~~statement~~Sales Drivers – 9 months to March 05

~~___The figures presented today are our current best estimate of the consequences for Telstra of adopting A~~-~~IFRS – accordingly, they remain subject to change~~170

~~___All~~Movement ~~amounts~~Drivers ~~are~~of ~~preliminary~~A$M ~~and~~Revenue ~~unaudited~~Growth A$M Actual Growth% —— —— — 251 Internet & IP solutions 975 35 238 Total mobiles 3,097 ~~but~~8.3 ~~reflect~~133 ~~the~~Other ~~work-in-progress~~Sales of& ~~our~~Service ~~IFRS~~566 ~~project~~31 ~~team~~86 Pay TV 192 81 83 Advertising & Directories 1,081 ~~and~~8.3 ~~are~~-30 ~~based~~ISDN on671 A(4.3 ) -~~IFRS~~45 ~~standards~~Specialised ~~and~~Data ~~interpretation~~729 as(5.8 at) 1PSTN ~~March~~5,845 ~~2005~~(2.8 )

~~___All~~Strong ~~forward~~Growth ~~looking~~in ~~statements~~Mobiles, ~~represent~~Internet ~~our~~& ~~best estimate to date and should not be relied upon as a final or exhaustive statement of all possible effects of A-IFRS when ultimately adopted in FY06~~IP

~~___Forward looking statements are inherently uncertain~~ as ~~they~~PSTN ~~are~~voice ~~based~~declines ~~upon~~Page ~~current assumptions, expectations, understandings, analysis and forecasts that may not turn out to be correct~~2

· The forward looking statements contained in this document speak only as of the date of this presentation. Telstra does not undertake to update any forward looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.

___Our estimates do not include the effect or likely effect of future transactions or new ventures/acquisitions on financial statements — they are based on events up to 30 November 2004.

___The company, through Investor Relations, will be happy to discuss with you the information included in this presentation, however we will not be able to provide any

further estimates of the future impact of adopting A-IFRS at this time

___The transition date cannot be finalised until the final SEC ruling is released

Page 2

~~Agenda ___Key~~Broadband ~~messages ___A-IFRS~~Lift ~~implementation timeline ___Financial impacts and significant changes in policy ___Sensitivities ___Summary ___Questions Page 3~~ Off

Broadband Subscribers (000s) 1, 479 — 1,233 761 806 611 508 379 361 220 718 245 121 622 57 427 Wholesale 188 240 288 Retail 1 H 03 FY 03 1 H 04 FY 04 1 H 05 Q305

Continued strong growth

in sector

Page 3

~~A-IFRS~~What atBroadband ~~Telstra~~is –Enabling ~~key~~in ~~messages~~the Digital Home

~~___No~~Integrated ~~impact~~customer ~~on Telstra’s strategy and business performance:~~solutions

___Management decisions are not affected by A-IFRS

___Telstra’s operations are not impacted

___Under A-IFRS there is likely to be increased volatility in earnings

___A-IFRS will not significantly affect net cash flow, ability to borrow funds, or dividends capacity

___No change to commitments ___No change to returns to shareholders

Focus on free cash flows and shareholder returns is not compromised

Page 4

~~A-IFRS~~Wireless ~~implementation~~& ~~timeline~~Mobility Expansion

~~___Formal~~3GSM ~~IFRS~~network ~~project~~ready ~~team~~second tohalf ~~manage~~calendar ~~convergence to A-IFRS~~05

___Our first set of A-IFRS financial statements will be for the half-year ended 31 December 2005, and for the financial year ended 30 June 2006

A-IFRS – Half A-IFRS – Full Telstra to start year year recording A-IFRS Offline model developed, and Final reporting to reporting to transactions narrative assessment of key Transitional transitional include 1 year include 1 or 2 offline (if SEC impacts and project status impacts impacts of years of relief is not used) disclosed reported reported comparatives comparatives

Jul 1 July 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 02

03 03 04 04 05 05 06

Project on schedule to meet implementation milestones

Page 5

~~The~~What ~~move~~Device toOptions ~~A-IFRS~~Are There?

~~___A-IFRS~~Mobile isConnectivity ~~not~~Solutions ~~optional,~~Mobile ~~has~~Handset/PDA’s ~~the~~PC ~~force of law, and Telstra is required to apply it from 1 July 2005~~Cards

~~___There~~USB ~~are two components to the move:~~devices

~~___Transitional~~Devices ~~adjustment~~to suit customer needs

___The effect of adjusting the existing AGAAP numbers to reflect the position as if A-IFRS had always been applied

___Comprised of both mandatory adjustments and optional elections

___Ongoing impact – the effect on operating profit each period from applying the new rules

A-IFRS must be applied by Telstra from 1 July 2005

Page 6

~~Key~~Sensis ~~transition~~– ~~impacts~~a ~~___Known~~clear ~~estimable~~strategy impacts reported in 31 December 2004 half-year financial statements ___No change to these estimated impacts to date Transition date 1 July 2003 1 July 2004 $ million $ million (unaudited) (unaudited) AGAAP total equity 15,422 15,361 Total reduction in equity (907) (852) A-IFRS total equity 14,515 14,509 Major components — increase/(decrease) in equity: Consolidation of TESOP and Growthshare Trusts (319) (291) Share based remuneration 34 55 Carrying value differences from the tax base (193) (184) Defined benefit pension assets 186 400 Retranslation of the overseas goodwill balances * (285) (302) Expensing of borrowing costs previously capitalised * (331) (322) Equity accounting of capacity prepayment for ~~Reach Ltd 1 (208) * Optional adjustments under A-IFRS Transition date to be determined based on SEC ruling Page 7~~growth

Integrate, expand and grow the core business

Local Advertising M&A Domestic Business Services M&A

Establish and grow Sensis Search sensis. com.au/sensis 1234 / Sensis Wireless

Local Advertising Brands

Yellow Pages® White Pages® CitySearch® Trading Post® AutoTrader™ JustListed ™ Business Services Invizage Technology Location & Navigation Business Information Services Domestic Business Services M&A Future channel

Commercial Search is the future for Sensis Page 7

~~Ongoing~~PSTN ~~impact~~Portfolio —PSTN ~~financial~~Challenges ~~highlights~~regulatory ~~Six~~intervention ~~months~~mobile tosubstitution 31competitive ~~December~~Pressures ~~2004~~disruptive ~~Increase/(decrease)~~technologies ~~AGAAP A-IFRS 31 December 2004 $ million $ million $ million~~ (~~unaudited~~VOIP/ULL) ~~(unaudited)~~PSTN ~~(unaudited)~~still ~~Income~~a ~~statement~~significant ~~Sales~~driver ~~Revenue~~of ~~11,275~~cashflow ~~11,275~~Response -Investigating ~~Total~~pricing ~~income~~strategy ~~11,382~~Trialling ~~11,360~~VOIP (22) Total expenses 5,845 5,871 26 EBITDA 5,537 5,489 (48) Depreciation and amortisation 1,850 1,733 (117) EBIT 3,687 3,756 69 Net finance costs 371 424 53 NPAT 2,337 2,391 54 Earnings per share Basic 18.6 19.1 0.5 Diluted 18.6 19.0 0.4 Dividend payout ratio 74.5% 72.9% -1.6% Net assets 15,254 14,508 (746) Net debt 11,972 11,967 (5) Net cash flow 420 422 2 Free cash flow 1,609 1,976 367 The impact of AASB 132Product/~~139~~Package ~~Financial~~development ~~Instruments~~F2M ~~has~~Convergence ~~been~~framework ~~excluded~~PSTN ~~from~~still ~~this~~a ~~analysis~~significant ~~due~~driver ~~to the relevant transition date being 1 July 2005. Each~~ of ~~the~~cashflow ~~above items is addressed in more detail in the following pages and the Appendix. Earnings may be more volatile, but net cash flow not affected~~ Page 8

~~Significant~~Future ~~changes~~Network in policy ___Telstra’s high impact areas on convergence: ___Share-based payment ___Business combinations ___Income taxes ___Employee benefits ___Borrowing costs ___Impairment of assets ___Financial instruments Page 9Evolution

Today: Separate Networks Future: Unified Architecture

“Service/functions tightly coupled with each network/access” “seamless service over any access”.

A dramatically simplified network

Page 9

~~AASB~~Revenue 2and ~~“Share-Based~~Margin Payment” ___Cease recording an expense when funding provided to the trust to purchase Telstra shares that underpin certain equity instruments issued ___Recognise expense for all share-based remuneration, determined with reference to the fair value of the equityPerformance

~~instruments~~Underlying ~~issued~~Sales ~~after~~Revenue 7 November 2002 ___Charged to the income statement over the relevant vesting periods, and is adjusted to reflect the expected level of vesting. Under existing requirements, the entire expense is recognised immediately for each issue 31/12/2004 P&L ~~restatement~~Margin $mDomestic ~~(unaudited)~~Underlying ~~Benefit~~Sales ~~of recognising expense over vesting period 13 Consolidation of Growthshare Trust (1) Profit improvement after tax 12 Page 10~~Revenue

Focus on costs required to keep margins high

Page 10

~~AASB~~End 3to ~~“Business~~End ~~Combinations”~~Process Simplification

~~___Elimination~~Cross ofcompany ~~goodwill~~approach ~~amortisation~~to ~~will~~improving ~~reduce~~service ~~expenses and increase earnings~~delivery

___Impairment testing on goodwill to be performed at each reporting date.

Recognise impairment charge immediately in income statement if it occurs

___Deferred tax balances are to be recognised as part of acquisitions, which will result in higher goodwill balances

31/12/2004 P&L restatement

$m (unaudited)

Benefit of ceasing amortisation — controlled entities 72 Benefit of ceasing amortisation — joint ventures and associates 1 Profit improvement after tax 73

Page 11

~~AASB~~Target ~~112~~Financial ~~“Income Taxes”~~Parameters

~~___Income~~1. ~~tax~~Payout onRatio ~~the~~(Ordinary ~~profit~~Dividends ~~for the year comprises current and deferred taxes.~~Declared)

~~___Tax~~2. ~~expense~~Gearing is– ~~generally~~Net ~~recognised in the income statement, except:~~Debt

~~___items~~3. ~~recognised~~Interest ~~directly~~Cover in– ~~equity,~~EBITDA/ ~~tax~~Net isInt ~~in equity ___business combinations, tax is in goodwill~~Exp

~~___Generally recognise deferred tax balances when there is a difference between the carrying value of an asset or liability and its tax base~~4. ~~This~~Debt ~~means~~Servicing ~~that~~– ~~tax~~Net ~~expense will be different under A-IFRS.~~Debt/EBITDA

~~___The~~Target ~~test~~parameters provide flexibility for the ~~recognition of tax losses has changed from virtual certainty to a test of probability 31/12/2004~~future

P&L restatement $m (unaudited)

Income tax benefit 13 Profit improvement after tax 13

Page 12

~~AASB~~Effective ~~119~~Capital ~~“Employee Benefits”~~Management

~~___An~~Ordinary ~~expense~~Dividend ~~will~~+8% be$4.9b ~~recognised~~cash ~~when~~returns ~~the service cost exceeds expected asset return~~FY05

~~___The~~Increasing ~~service components of the superannuation costs will be an additional expense recognised in the income statement. This expense will occur irrespective of whether~~ cash ~~contributions~~returns ~~are~~for ~~being made to the fund~~shareholders

~~___There~~Page ~~are options for recognising actuarial gains/losses — we have elected to recognise actuarial gains/losses directly in retained profits. This will result in future volatility in equity~~13

___A portion of the defined benefit scheme expense will be recognised in PP&E balances

31/1

2/2004 P&L restatement $m (unaudited)

Labour (expense) (incl. the effects of contribution taxes) (86) Income tax benefit 24 Profit reduction after tax (62)

Balance sheet

Retained earnings (actuarial gains, incl. the effects of contribution taxes) 90 Income tax movement in retained earnings (debit)/credit (23)

Net increase in retained earnings 67 Page 13

~~AASB~~Our ~~123~~Strategy ~~“Borrowing~~Improve ~~Costs”~~Align ~~___Borrowing~~Investment ~~costs~~customer ~~will~~service beto ~~included~~growth in interest expense as incurred, rather than capitalised and included in depreciation in future periods. This results in a timing difference in recognition in the income statement 31/12/2004 P&L restatement $m (unaudited) Benefit of ceasing depreciation 45 Borrowing (cost) (48) Income tax benefit 1 Profit reduction after tax (2) Page 14drivers

Cost and productivity improvements

- six sigma — cross company process review — reducing cost of service delivery

Execution will deliver shareholder returns

- Broadband — Wireless — Advertising — IP Networks

Manage migration

- Bundling — Fixed SMS

Page 14

~~AASB~~MEDIA ~~136 “Impairment of Assets”~~RELEASE

~~___Property,~~18 ~~plant~~May ~~and~~2005 ~~equipment,~~177 ~~goodwill,~~/ intangibles etc will be reviewed at each reporting date to determine whether there are indications of impairment. If indications exist, the asset is tested for impairment by comparing recoverable amount to its carrying value2005

~~___Telstra’s~~Telstra ~~Australian~~announces ~~telecommunications~~plan ~~operations will continue~~ to beissue ~~assessed as~~ a ~~single~~€1 billion ~~cash~~Eurobond ~~generating~~during ~~unit (“CGU”)~~June

~~___Each~~Telstra ~~controlled~~today ~~entity,~~announced ~~joint~~plans ~~venture~~to ~~and~~issue ~~associate~~a ~~has~~Eurobond ~~been~~of ~~assessed,~~up ~~and~~to ~~generally~~€1 billion ~~each~~with ~~entity~~a ~~will~~maturity ~~have~~of atfive to ~~least one separate CGU~~10 years.

~~___Telstra~~This ~~has~~bond ~~previously~~issue ~~chosen~~is to ~~assess~~meet ~~the~~Telstra’s ~~recoverable~~major ~~amount~~long onterm afunding ~~discounted~~requirements ~~basis,~~for ~~and this approach is required by~~ the ~~new~~coming ~~standard~~2005/2006 financial year.

~~___Potential~~Roadshow ~~for~~presentations ~~increased~~will ~~volatility~~be conducted in ~~earnings~~several ~~through~~key ~~the~~European ~~income~~centres ~~statement~~by ifTelstra’s ~~the~~Chief Financial ~~impairment~~Officer, ~~test~~John isStanhope, ~~not~~accompanied ~~met~~by inCorporate ~~the~~Treasurer, ~~future~~Cliff Davis and will target key institutional investors.

~~Page~~Mr Stanhope said the proposed borrowing, to be conducted under Telstra’s Global Debt Program, would further develop Telstra’s long standing presence in the Euro market, in which it was a regular issuer.

15“Current market conditions are considered strong in an environment where there is a general shortage of new corporate issuance compared to aggregate investor demand,” he said.

“We feel confident that European capital markets are in good shape, despite the impact of recent downgrades in the US Motor vehicle industry, and that investors have a sound understanding of Telstra and will provide solid support for the new issue”.

Mr Stanhope said he was looking forward to meeting with investors and was confident that the Euro investor community will be quite capable of understanding and evaluating the processes and developments taking place in Telstra and the Australian telecommunications business environment.

The proceeds of the issue will be used principally for general corporate funding purposes and to refinance maturing long term debt.

Telstra has appointed JPMorgan, BNP Paribas, Deutsche Bank and Barclays to act as joint lead managers for the proposed issue.

Telstra is Australia’s leading telecommunications services provider with long term rating of A+ (negative outlook) by S&P, A1 (negative outlook) by Moody’s and A+ (stable) by Fitch.

Kerrina Lawrence
Telstra Media Relations
Tel: + 61 3 9634 5611
Mobile: + 61 419 352 313

Telstra’s national media inquiry line is 13 1639 and Telstra’s Media Centre is located at: www.telstra.com.au/communications/media


		Telstra Corporation Limited
		ABN 33 051 775 556

~~AASB~~Telstra ~~132~~Corporation ~~and~~Limited ~~AASB~~ABN ~~139~~AMRO Communications Conference 19 May 2005 John Stanhope Chief Financial ~~Instruments~~Officer ~~-Recognition~~“A ~~and~~changing ~~Disclosure~~landscape”

~~___Application~~Page ~~of AASB 132/139 is required to be applied prospectively from~~ 1 ~~July 2005, and comparative information does not need to be restated~~

___No change to Telstra’s business and risk management objectives and policies

___The mixed measurement model (some items at fair value, others at cost or amortised cost) and the hedge accounting requirements makes AASB 139 a complicated standard to apply

___The major impact to Telstra of adopting AASB 139 relates to hedging activities

___Entering into derivatives contracts to manage interest rate and foreign currency risk introduces profit volatility

___There is an accounting impact on Telstra’s profit and net asset position from the re-measurement of financial assets and financial liabilities and the application of hedge accounting

Page 16

~~AASB~~An ~~132~~Integrated ~~and~~IP ~~AASB~~Future ~~139~~The ~~Financial~~shift ~~Instruments~~to –IP ~~Areas~~can ~~that~~be ~~will~~managed ~~Create~~effectively ~~Volatility~~Fixed ~~Changes~~network inand ~~the~~services ~~measurement~~Mobile ~~basis~~network ~~of the following financial instruments will create volatility in profit~~ and~~/or~~ ~~equity:~~services ~~Available-for-sale~~Internet ~~Measurement~~network Impact Key Variables that financial assets basis - Equity (if impaired profit affect value - eg listed securities — fair value impact) — changes in quoted market price Derivatives in hedge Measurement Impact Key Variables that relationship basis - Profit or equity depending on affect value - eg cross currency swaps, — fair value hedge relationship (cash flow, — changes in interest rates; interest rate swaps, forward FX fair value, net foreign — changes in foreign contracts investment) and ~~whether~~services ~~exchange~~Yesterday ~~rates~~Fixed ~~hedge~~access ~~criteria~~Wireless ~~are~~access ~~satisfied.~~IP ~~Hedged~~NETWORK ~~items~~Tomorrow inAn ~~fair~~Integrated ~~value~~IP Measurement Measurement basis Key Variables that hedge basis - profit affect value - foreign currency borrowings — fair value to the — changes in interest rates; extent of the risk being — changes in foreign hedged exchange rates Page 17Future

Page 2

~~AASB~~Our ~~132~~Strategy Execution will deliver shareholder returns Cost and ~~AASB~~productivity ~~139~~improvements ~~Financial~~- ~~Instruments~~six sigma -~~Hedging~~ ~~Overview~~cross company process review - reducing cost of service delivery Strong Earnings and Free Cash Flows Manage migration - Bundling - Fixed SMS Align Investment to growth drivers - Broadband - Wireless - Advertising - IP Networks Improve customer service

~~Fair~~Page ~~value hedges Cash flow hedges Net investment in~~3

foreign entities Used for: ___Foreign exchange ___In conjunction with fair ___Hedge against and interest rate risk value hedges exposure to foreign on foreign borrowings currency risk

___Foreign exchange risk on foreign borrowings and purchases

Profit ___Revaluation to fair ___Hedge ineffectiveness ___Hedge value of foreign ineffectiveness

impact: ___Transfer made from

borrowing and derivative

equity to profit in same

___Movement in derivative

period as underlying

not offset by movement

hedged item affects profit

in borrowing ___Hedge ineffectiveness Direct ___None ___Revaluation to fair value ___Gains/losses on of derivative to extent translation and equity derivative are effective impact: recognised in FCTR

Page 18

~~Sensitivities~~Broadband –Lift ~~Potential~~Off ~~Financial~~188 ~~Instruments~~240 ~~Ongoing~~288 ~~Impact~~427 622 718 121 220 379 611 761 57 1H 03 FY 03 1H 04 FY 04 1H 05 Q305 Broadband Subscribers (000s) Wholesale Retail 245 361 508 806 1,233 Continued strong growth in broadband 1, 479

~~___The~~Page ~~Financial Instruments Standards are applicable to Telstra from 1 July 2005. The potential impact on the income statement and balance sheet is~~4

6 mths to

summarised below: What if analysis

31/12/04

Adverse proportional movement of 10% across risk Double margin categories [10% — all other decrease in FX; 10% variables increase in interest Actual constant rates] IMPACT ON PROFIT — ASSUMING 1/7/04 TRANSITION TO AASB 139 $m $m $m Revaluation of borrowings and derivatives to fair value — net of tax 13 (20) 25 Excluded component of hedges of net investments in foreign entities - net of tax 5 5 5

Total profit reduction/(improvement) 18 (15) 30

IMPACT ON EQUITY — RESERVES — ASSUMING 1/7/04 TRANSITION TO AASB 139 Cash flow hedging instruments

- balance 1 July 2004 — net of tax (121) (121) (121) — net movement — net of tax (22) (2) 36

- sub-total cash flow hedge reserve — net of tax (143) (123) (85) FCTR — Net investments in foreign entities - transfer from equity — excluded component — net of tax (5) (5) (5) Available-for-sale financial assets

- balance 1 July 2004 (39) (39) (39) — net movement — net of tax 1 1 1

- sub-total available-for-sale — net of tax (38) (38) (38) Total equity — reserves — reduction/(improvement) — net of tax (186) (166) (128)

IMPACT ON NET DEBT — ADJUSTMENT TO AGAAP NET DEBT

Revaluation of derivatives and borrowings — net decrease in net debt 52 230 740

Page 19

‘ FOXTEL – a key asset in a changing landscape

~~Sensitivities~~FOXTEL –is ~~Potential~~delivering ~~Impacts~~a better TV experience

~~___An~~• ~~expense~~Foxtel ~~will~~is bea ~~recognised~~key ~~under~~element ~~AASB~~in ~~119~~the ~~for~~Telstra ~~defined~~product ~~benefit~~bundle ~~schemes~~• ~~irrespective~~Interactive ofcontent ~~whether~~to ~~cash~~fuel ~~contributions~~connectivity demand • We are ~~being~~committed ~~made~~to our 50% shareholding

~~___Net~~Page ~~pension cost for the six months to 31 December 2004 recognised in the A-IFRS income statement was $86 million~~5

___A 1% movement in the discount rate would have changed the half-year income statement by $21 million

___A 1% movement in the return on assets would have changed the half-year income statement by $23 million

___Effect of change in exchange rates on the foreign currency translation reserve due to reflecting goodwill and fair value adjustments in foreign currencies in accordance with AASB 121

___Impact on the balance sheet of a 10% increase in exchange rates is to decrease FCTR by $193 million

___Impact on the balance sheet of a 10% decrease in exchange rates is to increase FCTR by $236 million

Page 20

~~Overview~~Wireless of& ~~ongoing~~Mobility ~~impact~~Expansion 2G CDMA 14Kbps 9-60Km GSM 9Kbps 5-35Km – - 3G - 9- 1x EVDO 1x EVDV EDGE 100Kbps 2-10 Km 3GSM (WCDMA ) 250Kbps 2-10Km HSDPA 3Mbps 1x EV -DO Rev A - 300 600 Kbps 30Km Telstra Telstra Strategic Strategic Position Position Flarion 1.5Mbps 3-8Km WiMax Active rollout Not currently pursuing Trial Infrastructure share 600 – 700 Kbps 9-30Km Retaining option GSM CDMA Broadband IP wireless 3GSM network ready second half calendar 05 25Kbps 5- 2.5G 1xRTT 80Kbps -9-50Km GPRS 5-35Km National rollout

~~___Sales~~Page ~~revenue – no change, underlying business not impacted~~6

___Operating expenses – additional labour expense due to the impact of defined benefit schemes, partially offset by the reclassification of the book value on non-current assets disposed to Other Income

___EBITDA – lower due to additional labour expense

___Depreciation – reduced charge due to reversal of previously capitalised interest

___Amortisation — reduced charge due to cessation of amortisation of goodwill

___EBIT – an improvement as the benefit arising from depreciation and amortisation exceeds the additional expenses

___Interest — increased charge due to cessation of capitalising interest

___After application of AASB 139 Financial Instruments — increased charge due to inclusion of hedging impacts

___Income Tax – reduced due to increased expenses ___Net cash flows – minor change only

___Free cash flows – increased mainly due to borrowing costs and bills of exchange being reclassified between operating, investing and financing activities

___Net debt – minor change only

___After application of AASB 139 Financial Instruments — revaluation due to inclusion of hedging impacts

Strategy and underlying business operations not impacted

Page 21

~~Target~~Sensis ~~financial~~– ~~parameters~~a clear strategy for growth Integrate, expand and grow the core business Growth through search and M&A Commercial Search is the future for Sensis Print Online Voice Wireless Establish and grow Sensis Search sensis.com.au / sensis®1234 / Sensis Wireless Local Advertising M&A iTV Yellow Pages® White Pages® CitySearch® Whereis® MediaSmart® Trading Post® AutoTrader™ JustListed ™ Zest for life Business Services Invizage Technology Location & Navigation Business Information Services Domestic Business Services M&A Future channel Local Advertising Brands

~~Six~~Page ~~months to 31 Increase/ December 2004 (decrease) AGAAP A-IFRS 31 Dec. 2004 Target (unaudited) (unaudited) (unaudited)~~7

Payout ratio (ordinary dividends declared) 80% 74.5% 72.9% -1.6% Gearing — Net Debt 45-55% 44.0% 45.2% 1.2% Interest Cover — EBITDA/ Greater Net Interest Expense than 8 13.2 12.9 (0.3) Debt Servicing — Net 1.3 — 1.7 Debt/ EBITDA times 1.1 1.1 0.0

The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005.

Debt coverage ratios not materially impacted

Page 22

~~A-IFRS~~PSTN atVoice ~~Telstra~~— –managing ~~key~~the ~~messages~~migration

~~___No~~PSTN ~~impact~~Challenges onregulatory ~~Telstra’s~~intervention mobile substitution competitive Pressures disruptive technologies (VOIP/ULL) PSTN still a significant cashflow generator Response Investigating pricing strategy ~~and~~Trialling ~~business~~VOIP ~~performance:~~Product/Package development F2M Convergence framework Page 8

___Management decisions are not affected by A-IFRS

___Telstra’s operations are not impacted

___Under A-IFRS there is likely to be increased volatility in earnings

___A-IFRS will not significantly affect net cash flow, ability to borrow funds, or dividends capacity

___No change to commitments ___No change to returns to shareholders

Focus on free cash flows and shareholder returns is not compromised

Page 23

~~Appendix~~Underlying Sales Drivers — 9 months to march 05 238 133 86 83 -30 -45 -170 251 Movement A$M Internet & IP solutions 975 35 Total mobiles 3,097 8.3 Other Sales & Service 566 31 Pay TV 192 81 Advertising & Directories 1,081 8.3 ISDN 671 (4.3) Specialised Data 729 (5.8) PSTN 5,845 (2.8) Drivers of Revenue Growth A$M Actual Growth% Strong Growth in Mobiles, Internet & IP as PSTN voice declines Page 9

Page 24

~~Restated~~Revenue ~~Income~~and ~~Statement~~Margin ~~Six~~Performance ~~months~~Underlying toSales 31 December 2004 Increase/(decrease) Presentation Accounting Total A-IFRS AGAAP adjustments adjustments adjustments A-IFRS $ million $ million $ million $ million $ million (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Income Revenue ~~(excluding~~& ~~interest~~Margin ~~revenue) 11,382 (96) — (96) 11,286 Other income — 74 — 74 74 11,382 (22) — (22) 11,360 Expenses~~ -5 ~~Labour~~0 ~~1,812 — 73 73 1,885 Goods and services purchased 2,124 — — — 2,124 Other expenses 1,909 (22) (24) (46) 1,863~~ 5~~,845~~ ~~(22)~~10 491H 2702 ~~5,872~~2H ~~Net~~02 ~~losses~~1H ~~from~~03 ~~joint~~2H ~~ventures~~03 ~~and~~1H ~~associates~~04 —2H —04 ~~(1)~~1H ~~(1)~~05 ~~(1)~~0 ~~5,845~~20 ~~(22)~~40 4860 2680 ~~5,871~~ EBITDA ~~5,537~~Margin — (48RHS) ~~(48)~~Sales ~~5,489~~Rev ~~Depreciation~~Growth ~~and amortisation 1,850 —~~ (~~117~~LHS) ~~(117) 1,733~~ EBIT ~~3,687~~Margin ~~— 69 69 3,756 Interest revenue 35 —~~ (1RHS) ~~(1)~~Focus 34on ~~Finance Costs 406 — 52 52 458 Net finance~~ costs ~~371~~required —to 53keep 53margins ~~424~~high ~~Profit~~Broker ~~before~~Estimates ~~Income~~EBITDA ~~Tax~~Margin ~~Expense~~0.0% ~~3,316~~10.0% —20.0% 1630.0% 1640.0% ~~3,332~~50.0% ~~Income~~60.0% ~~tax~~SBC ~~expense~~Comms ~~979~~BT —Group ~~(38)~~Verizon ~~(38)~~TeliaSonera ~~941~~Deutsche ~~Net~~Telekom ~~Profit~~Singapore ~~2,337~~Telecom —BellSouth 54France 54Telecom ~~2,391~~Telefonica ~~Minority~~Telecom ~~interest~~NZ inTelecom ~~net~~Italia ~~loss~~Swisscom ~~— — — — - Net profit available to~~ Telstra ~~Entity s/holders 2,337 — 54 54 2,391 The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 Page 25 July 2005.~~

Page 2510

~~Income~~End ~~Six~~to ~~months~~End toProcess 31Simplification ~~December~~Telstra ~~2004~~Business $and ~~million~~Govt. $Telstra ~~million~~Country $Wide ~~million~~TTIP $Telstra ~~million~~Consumer ~~(unaudited)~~Marketing ~~(unaudited)~~Corp. ~~(unaudited)~~Reg. ~~(unaudited)~~& HR Wholesale BigPond Infra - structure Services Finance & Admin Channels & Sales ~~Other~~Activation ~~Other~~Assurance ~~Total~~Billing Customer Product Technology Supplier/Partner Key Process Customer Cross company approach to improving service delivery Page 11

Revenue Revenue Income Income AGAAP revenue 11,275 107 — 11,382 A-IFRS adjustments — Improvement/(reduction) Presentation AASB 116 — Proceeds on sale of non-current assets — (29) 29 - AASB 116 — Book value of non-current assets disposed — — (22) (22) AASB 118 — Reclassification — (67) 67 - — (96) 74 (22) Accounting No impact — — — - A-IFRS income 11,275 11 74 11,360 Page 26

~~Earnings~~Target ~~Before~~parameters provide flexibility for the future Target Financial Parameters 0.5 0.8 1.1 1.4 1.7 2.0 FY 00 FY 01 FY 02 FY 03 FY 04 1H 05 Times 4. Debt Servicing – Net Debt/EBITDA Weaker Stronger Target Zone 1.3 – 1.7 times 3. Interest, ~~Tax,~~Cover ~~Depreciation~~– ~~and~~EBITDA/ ~~Amortisation~~Net Int Exp 0 5 10 15 FY 00 FY 01 FY 02 FY 03 FY 04 1H 05 Times Stronger Weaker Target Zone greater than 8 times 40 60 80 100 FY 00 FY 01 FY 02 FY 03 FY 04 1H 05 % 1. Payout Ratio (~~EBITDA~~Ordinary Dividends Declared) Weaker Stronger Target Zone 80 % 2. Gearing – Net Debt Weaker Stronger Target Zone 45 — 55% 35 40 45 50 55 FY 00 FY 01 FY 02 FY 03 FY 04 1H 05 % Page 12

Six months to

31 December 2004 $ million (unaudited)

AGAAP earnings before interest, tax, depreciation and amortisation 5,537 A-IFRS adjustments — Improvement/(reduction) Presentation Income adjustments (22) AASB 116 — Book value of non-current assets disposed 22 -

Accounting Income adjustments -AASB 2 — Recognition of expense for share-based payments (6) AASB 2 — Reversal of expense under AGAAP for share-based payments 19 AASB 3 — Reversal of goodwill amortisation for joint ventures and associates 1 AASB 119 — Defined benefit cost — TSS and HKCSL (86) AASB 128 — Other capacity prepayment adjustments 24

(48)

A-IFRS earnings before interest, tax, depreciation and amortisation 5,489

The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. Page 27

~~Earnings~~Effective ~~Before~~Capital ~~Interest~~Management ~~and~~Increasing ~~Tax~~cash ~~(EBIT)~~returns for shareholders 8 11 11 11 12 12 13 13 14 6 3 1H 01 2H 01 1H 02 2H 02 1H 03 2H 03 1H 04 2H 04 1H 05 Dividends per share +15% CAGR Ordinary Special $1.5b $1b $750m $1.5b $750m FY 04 FY 05 FY 06 FY 07 Capital Management Distributions Buyback Format of distribution to be determined Special Dividend Ordinary Dividend +8% $4.9b cash returned FY05 Page 13

Six months to

31 December 2004 $ million (unaudited)

AGAAP earnings before interest and tax 3,687 A-IFRS adjustments — Improvement/(reduction) Presentation EBITDA adjustments -

Accounting

EBITDA adjustments (48) AASB 3 — Reversal of goodwill amortisation for controlled entities 72 AASB 123 — Decrease in depreciation from no longer capitalising interest 45 69

A-IFRS earnings before interest and tax 3,756

The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005.

Page 28

~~Net~~Telstra ~~Profit~~Corporation ~~After~~Limited ~~Tax~~Citigroup ~~(NPAT)~~Wireless ~~Six~~Conference ~~months~~8 toJune 312005 ~~December~~Mike ~~2004~~Robey Telstra Corporation Limited Page 1

$ million (unaudited) AGAAP net profit after tax available to Telstra entity shareholders 2,337

A-IFRS adjustments — Improvement/(reduction)

Presentation EBIT adjustments -

- Accounting EBIT adjustments 69

AASB 2 — Elimination of interest revenue from Growthshare Trust (1)

AASB 112 — Movement in additional deferred tax balances 13

AASB 116 — Different discount rate for deferred consideration on acquisition of assets (4)

AASB 119 — Tax effect of defined benefit cost 24

AASB 123 — Increase in finance costs from no longer capitalising interest (48)

AASB 123 — Tax effect adjustment of no longer capitalising interest 1

A-IFRS net profit after tax available to Telstra entity shareholders 2,391

The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. Page 29

~~Earnings~~Mobiles ~~per~~Metrics Telstra is the market leader 79 85 853 918 Q3 04 Q3 05 Terminals Mobile Services Q 3 YOY Mobile Revenue Comparison: +7.6% 2,702 3,436 4,466 4,623 Q3 04 Q3 05 Prepaid Postpaid Mobile SIO’s (000s) 44.6 45.62 45.0 44.6 45.17 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Telstra Mobile SIO Market Share % Mobile Revenue Market Share % 2.7% 2.8% 17.1% 32.2% 45.1% Telstra Optus Voda 3 Orange 55.07 57.31 40.01 37.88 14.68 11.65 $0.00 $20.00 $40.00 $60.00 Q3 04 Q3 05 Mobile ARPU’s Q3 YOY Prepaid Postpaid Total Page 2

Six months to 31 December Basic Diluted cents cents (unaudited) (unaudited)

AGAAP earnings per share 18.6 18.6

A-IFRS adjustments — Improvement/(reduction)

NPAT adjustments 0.4 0.4 AASB 2 — Weighted average number of shares held by Growthshare Trust and under TESOP loans

0.1 0.1 AASB 2 — Shares assumed to be issued for no consideration — (0.1)

A-IFRS earnings per share 19.1 19.0

The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005.

Page 30

~~Restated~~Customer ~~Balance~~view ~~Sheet~~of ~~Six~~technology ~~months~~Integrated to 31 December 2004 Increase/(decrease) Presentation Accounting Total A-IFRS AGAAP adjustments adjustments adjustments A-IFRS $ million $ million $ million $ million $ million (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets 6access,~~070~~ ~~(537)~~open 5content ~~(532)~~Content ~~5,538~~At ~~Non~~Home ~~current~~PTT ~~assets~~Out ~~30,418~~& ~~371~~About ~~(382)~~Converged ~~(11)~~Device ~~30,407~~IM ~~Total~~email ~~assets~~One2one ~~36,488~~SMS/MMS ~~(166)~~From ~~(377)~~disaggregated ~~(543)~~Products... ~~35,945~~... Current liabilities 7,868 — (13) (13) 7,855 Non current liabilities 13,366 — 216 216 13,582 Total liabilities 21,234 — 203 203 21,437 Net assets 15,254 (166) (580) (746) 14,508 Equity Share capital 5,793 (166) (103) (269) 5,524 Reserves (160) — 94 94 (66) Retained earnings 9,619 — (571) (571) 9,048 Equity available to ~~Telstra~~seamless ~~Entity shareholders 15~~Voice,~~252~~ ~~(166)~~Data ~~(580)~~and ~~(746)~~Content ~~14,506~~ISDN ~~Minority~~PSTN ~~interest~~ADSL 2HFC —GSM —CDMA —3 2G ~~Total~~WiFi ~~shareholders’~~WiMax ~~equity~~GPRS ~~15,254~~1xRTT ~~(166)~~EVDO ~~(580)~~Integrated ~~(746)~~Access ~~14,508~~? ~~The~~CDMA ~~above~~GSM ~~assumes~~Broadband aISDN 1ADSL ~~July~~WiFi ~~2003~~DECT ~~transition~~i-mode ~~date,~~Internet ~~and~~WiFi ~~excludes~~3 ~~the~~G ~~impact~~? of? ~~AASB~~? ~~132/139~~? ~~Financial~~Cable ~~Instruments.~~PDA A1xRTT 1Page ~~July 2004 transition date would result in some differences to those noted above.~~3

Page 31

~~Net~~Customer ~~Debt~~view ~~Six~~of ~~months~~market toInternet 31Estimated ~~___Net~~growth ~~debt~~trends is• ~~defined~~Focus ason ~~December~~growing ~~2004~~share ~~total~~in ~~current~~individual product markets • Compete with single / 2-product competitors on their terms • As an integrated telco, focus on customers and ~~non~~servicing $their ~~million~~whole ~~current~~telco ~~borrowings~~wallet ~~(unaudited)~~• ~~less~~Build ~~liquid~~on ~~interest~~our existing customer base and capture market trend towards multi-product ~~bearing~~customers ~~assets~~4-product ~~AGAAP~~F+M+I+P ~~net~~3-product ~~debt~~F+M+I 112-product F+M,~~972~~ ~~___From~~F+I 1-product ~~July 2005~~F, ~~A-IFRS~~M ~~adjustments~~Fixed —line ~~Increase/(decrease)~~• ~~AASB~~7.9 ~~139~~Million ~~will~~households ~~impact~~• ~~Presentation~~71% onretail ~~net~~market ~~debt~~share asMobiles ~~the~~• ~~fair~~18 Nomillion ~~impact~~SIOs ~~value~~• ~~hedge~~45% —market ~~component~~share of• ~~Accounting~~Industry ~~borrowings~~SIO’s ~~will~~1.7 bemil ~~AASB~~• 241% —retail ~~Cash~~market ~~held~~share byCustomers ~~Growthshare~~expect ~~Trust~~Telstra ~~(5)~~to ~~recognised~~provide atan ~~fair~~integrated ~~(5)~~solution ~~value,~~From ~~rather~~product ~~than~~view.... ~~translated~~... ~~spot~~to ~~value~~customer view Target! Page 4

A-IFRS net debt 11,967 The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date being 1 July 2005. Page 32

~~Restated~~Market ~~Cash~~success ~~Flow~~factors ~~Statement~~Customer ~~Six~~strategies ~~months~~Capabilities toCustomer 31knowledge ~~December~~Channel ~~2004~~strength ~~Improvement/(reduction)~~Sales ~~Presentation~~skills ~~Accounting~~Strategic ~~Total~~Customer ~~A-IFRS~~Segmentation ~~AGAAP~~Compelling ~~adjustments~~content ~~adjustments~~for ~~adjustments A~~i-~~IFRS~~mode $& ~~million~~3G $Delivering ~~million~~Whole $ million $ million $ million (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Cash flows from operating activities 3,993 401 (1) 400 4,393 Cash flows from investing activities (2,384) (33) — (33) (2,417) Free cash flow 1,609 368 (1) 367 1,976 Cash flows from financing activities (1,189) (368) 3 (365) (1,554) Net increase/(decrease) in cash 420 — 2 2 422 Foreign currency conversion (5) — — — (5) Cash at the beginning of ~~the~~Customer ~~period~~through ~~687 — 3 3 690 Cash at the end of the period 1,102 — 5 5 1,107 The impact of AASB 132/139 Financial Instruments has been excluded from this analysis due to the relevant transition date~~ being 1an ~~July~~integrated ~~2005.~~carrier ~~___Free~~Business ~~cash~~products ~~flow~~& ~~change~~Network ~~reflects~~coverage ~~the~~Whole ~~movement~~ of ~~interest~~Customer ~~paid~~Approach ~~from operating to financing activities, and bills of exchange from financing to investing activities~~ Page 335

~~Hedging~~Customer ofSegmented ~~interest~~Operating ~~rate~~Model ~~risk~~Marketing Services Channel Mgmt Customer Sales, Service & Dealers Finance & Pricing Strategy Planning & Business Improvement Consumer Segment Small Business Segment Pioneer Segment Customer Segments Organised for Success Page 6

Under current AGAAP – portfolio hedging in place to achieve fixed float ratio

+ Domestic borrowings NET

AUD

+ Foreign Currency borrowings DEBT

Int

erest

+/-Cross Currency Swaps Fixed Rate -Cash / Short Term Investments Floating Swap = NET DEBT Profile Portfolio per target

Page 34

~~Hedging~~Wireless success is underpinned by channel strength Post-paid and prepaid range Prepaid only Company owned channels Branded channels Over 8 000 locations Independent channels 212 locations 128 Telstra Owned Shops/Kiosks 3,125 Telstra Shop Staff 16.5m Telstra Shop customers through our doors Majority of ~~interest~~major ~~rate~~dealers ~~risk~~are now on new contracts Page 7

Under AASB 139 – no portfolio hedge, individual hedging relationships are established

= Underlying Debt + Domestic borrowings + Domestic borrowings + AUD interest rate swap = Debt with Fixed Float ratio +Foreign Currency borrowings =

Underlying Debt

+/-Cross Currency Swaps Fair Value hedge relationships

+ Foreign Currency borrowings +/- Cross Currency Swaps + AUD interest rate swap = Debt with Fixed Float ratio

Cash Flow hedge relationships

-Cash / Short Term Investments = NET DEBT

Page 35

~~Borrowings~~Wireless ~~denominated~~& inMobility ~~foreign~~Expansion ~~currency~~2G ~~(not~~CDMA ~~translation~~14Kbps ~~hedges~~9-60Km GSM 9Kbps 5-35Km – - 3G - 9- 1x EVDO 1x EVDV EDGE 100Kbps 2-10 Km 3GSM (WCDMA ) 250Kbps 2-10Km HSDPA 3Mbps 1x EV -DO Rev A - 300 600 Kbps 30Km Telstra Telstra Strategic Strategic Position Position Flarion 1.5Mbps 3-8Km WiMax Active rollout Not currently pursuing Infrastructure share 600 – 700 Kbps 9-30Km Retaining option GSM CDMA Broadband IP wireless 3GSM network ready second half calendar 05 25Kbps 5- 2.5G 1xRTT 80Kbps -9-50Km GPRS 5-35Km National rollout Trial Completed Page 8

Objective: Obtain the best AUD funding with desired fixed:float ratio outcome Often borrowings sourced from overseas markets give the best result (pricing, maturity)

Eg. EUR long term borrowing – pay fixed EUR hedged to pay fixed / pay float AUD

1 2 3 EUR borrowing EUR Interest Rate Swap EUR/AUD Cross Currency Swap

Pay fixed EUR Rec fixed EUR/Pay float EUR Rec float EUR/Pay float AUD (underlying exposure) (derivative) (derivative)

Interest Rate Management Par

tially hedged to fixed

· All derivatives (2, 3 & 4) are recorded at Fair Value

· Portion of 1, 2 & 3 will be designated in a Fair Value (FV) hedge AUD Interest Rate Swap

• Remaining portion of 1, 2 & 3 and all of 4 will be designated in a Cash Flow (CF) hedge

Rec float AU

D/Pay fixed AUD

· In a FV hedge, all instruments will be recorded at FV and impact taken to P/L

· In a CF hedge, 1 is valued at cost, 2-4 will be recorded in OCI with any “ineffectiveness” (derivative) taken to P/L

Page 36

18Business ~~April~~and ~~2005~~Government ~~147~~— /national ~~2004~~coverage for national clients Melbourne, Ballarat, Geelong Perth Newcastle, Sydney, Penrith, Parramatta, Moree, Canberra Wollongong, Albury, Adelaide Darwin Cairns, Townsville, Brisbane, Coolangatta, Surfers Paradise Hobart, Launceston Page 9

REACH Operating Model

Following REACH’s 10 January 2005 announcement on data capacity and third party business, Telstra today announced further REACH operational model improvements.

These improvements include:

· Dedicated components of REACH’s international cable capacity have been allocated to Telstra and PCCW. · Telstra and PCCW will each pay REACH US$157 million (in Telstra’s case settled by way of a discharge of REACH’s liabilities under the Capacity Prepayment Agreement). Telstra and PCCW have also each committed to funding a half share of REACH’s committed capital expenditure (up to 2022) being about US$106 million each. · REACH will manage allocated capacity on behalf of Telstra and PCCW and provide Telstra and PCCW with outsourced and other services including data and voice. · Telstra and PCCW will each pay REACH an outsourcing fee on a cost-plus mark up basis. Satellite services will be purchased at market rates. · REACH will continue its profitable third party voice and satellite business. · Telstra may fund and acquire further required cable capacity for management by REACH as part of the outsourcing arrangements.

REACH will retain the right to drawdown on its $US50 million shareholder working capital facility of June 2004.

Telstra’s Chief Financial Officer, John Stanhope said, “This is a logical conclusion of our quest for improved operational and financial efficiencies in REACH.

“This model is advantageous as it allows the shareholders to own and use allocated capacity in a cost effective manner through REACH exploiting economies of scale.

“It incents the shareholders to maximise the economies of scale through outsourcing services to REACH. REACH has further scope to reduce the shareholder outsourcing fees by continuing to actively and profitably sell voice and satellite services to third party customers.

“By outsourcing the management of capacity to REACH, the shareholders have created a model that could be replicated in the industry,” he said.

Telstra Media Contact Graeme Salt Tel: 61 2 9298 5256 Mbl: 0417 653 862

Telstra’s national media inquiry line is 13 1639 and the Telstra Corporate Communications Centre is located at: www.telstra.com.au/communications/media/index.cfm

Telstra Corporation Limited ABN 33 051 775 556

19i-mode ~~April~~delivered ~~2005~~eight ~~150/2005~~key benefits Page 10

Broadband milestone for BigPond

Australia’s leading ISP, BigPond, today announced it had achieved the milestone of 500,000 ADSL consumer broadband customers.

BigPond Managing Director, Mr Justin Milne, said today, “This milestone, which represents an increase of around 140% over the number of ADSL customers we had a year ago, augurs well for 2005 seeing record broadband growth in Australia,” he said.

“2004 saw the broadband market ‘on fire’ but I expect 2005 to leave it in the shade.

“The introduction of great offers in what is probably one of the most competitive marketplaces for broadband in the world, means that consumers are the winners.

A recent report by the UK-based IT analysts Point-Topic.com found that among countries with more than one million lines, Australia had the highest broadband growth during the second half of calendar 2004.

“We’re certain that the next financial year will see this explosive growth continue as more Australians see for themselves just how good broadband really is,” Mr Milne said.

Telstra media contact: Craig Middleton BigPond Corporate Affairs Manager (02) 8236 4372 or 0400 931 772 craig.middleton@team.telstra.com

Telstra’s national media inquiry line is 13 16 39 and the Telstra Corporate Communications Centre is located at: www.telstra.com.au/communications/media

Telstra Corporation Limited ABN 33 051 775 556

20 April 2005		Office of the Company Secretary
The Manager		Level 41
		242 Exhibition Street
Company Announcements Office		MELBOURNE VIC 3000
Australian Stock Exchange		AUSTRALIA
4th Floor, 20 Bridge Street
SYDNEY NSW 2000		Telephone 03 9634 6400
		Facsimile 03 9632 3215

The i-mode holistic business model develops a sustained eco-system Page 11

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra Corporation Limited 04/05 Third Quarter Market Update

In accordance with the listing rules, I attach an announcement for release to the market.

The CEO and CFO have pre-recorded their comments on the 3rd Quarter revenue performance. This commentary will be available on Telstra’s Corporate Communications Centre and can be access via the following URL – http://www.telstra.com.au/communications/calendar/calendarevent.cfm?ObjectID=801

Yours sincerely Douglas Gration Company Secretary

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556

~~Telstra~~CSL ~~Corporation~~investment ~~Limited~~provides ~~and~~in-house ~~controlled~~3G ~~entities~~ experience 2004 1H 2005 2H 2005 Invest in i-mode Best in browsing Invest in rest-ofbusiness capability Invest in 3G “Information Driven” Grow # sites to over 200 Enhance service rich-media entertainment Personal content Customise & Personalise! Expand range & depth Video Streaming Music Download 2006 CSL 3G launch Hong Kong Australia 12 Video Channels Page 12

Telstra Corporation Limited 04/05 Third Quarter Market Update

Continuing solid revenue growth

Highlights for the third quarter and the nine-month period to 31 March 2005

• Reported sales revenue grew by 6.5% in the third quarter and 7.4% to $16.6 billion year to date • Underlying sales revenue grew by 3.3% in the third quarter and 4.3% to $16.1 billion year to date • Underlying domestic sales revenue growth of 2.8% in the third quarter and 4.0% to $15 billion year to date • Internet & IP Solutions revenue grew by 38% in the third quarter and 35% or $251 million year to date • Mobiles revenue grew by 7.6% in the third quarter and 8.3% or $238 million year to date • Underlying advertising and directories revenue grew by 15% in the third quarter and 8.3% or $83 million year to date • A total of 246,000 broadband subscribers (retail and wholesale) were added in the third quarter • Total mobile subscribers reached 8.1 million, an increase of 76,000 in the third quarter

04/05 Third Quarter Market Update 20 April 2005

CSL — a 3G launch case-study for Telstra ~~Corporation~~At ~~Limited~~launch ~~and~~applications ~~controlled~~Video ~~entities~~ World example Launch campaign TVC “ I feel good” TVC Page 13

Telstra Corporation Limited 04/05 Third Quarter Market Update

Overview

Quarter ended 31 March 2005: Reported total revenue increased by 7.6% or $391 million to $5,521 million, which included increased revenue of $155 million generated by recently acquired entities and $87 million from investment and property sales. Reported sales revenue increased by 6.5% or $326 million to $5,340 million.

Underlying1 total revenue increased by 2.8% or $141 million to $5,208 million. Underlying1 sales revenue increased by 3.3% or $163 million to $5,169 million due to growth in broadband, mobiles, pay TV bundling, advertising and directories, and offshore business activities offset by a decline in PSTN calling products as migration to other products occurs. Underlying1 domestic sales revenue increased by 2.8% or $132 million to $4,785 million.

The third quarter results include the impact of an early Easter in 2004/05 and a leap year in 2003/04 resulting in 3 less working days than the prior corresponding period.

Nine months ended 31 March 2005: Reported total revenue increased by 5.9% or $947 million to $16,903 million which included increased revenue of $485 million generated by recently acquired entities and a decline in revenue from investment and property sales of $108 million. Reported sales revenue increased by 7.4% or $1,145 million to $16,615 million.

Underlying1 total revenue increased by 3.6% or $570 million to $16,242 million. Underlying1 sales revenue increased by 4.3% or $660 million to $16,122 million due to growth in broadband, mobiles, pay TV bundling, advertising and directories, offshore business activities and other sales & service offset by a decline in PSTN calling products as migration to other products occurs. Underlying1 domestic sales revenue increased by 4.0% or $569 million to $14,961 million.

The following details the Telstra group revenue result for the quarter ended 31 March 2005.

Footnotes: All percentages relate to growth on prior corresponding period (PCP) All statistical data represents management’s best estimates and excludes all Telstra internal usage statistics

(1) Underlying results are produced to allow like for like comparison by removing those items that are: not of a comparable nature owing to structural changes to the business such as acquisitions; significant and non recurring; or not part of the core operations of the business. Underlying numbers exclude proceeds from property and investment sales and revenues from the acquisitions of Trading Post, KAZ Group, PSINet Group, Damovo and Universal Publishers

04/05 Third Quarter Market Update 20 April 2005 Page 2

~~Telstra~~Sensis ~~Corporation~~and ~~Limited~~Commercial ~~and~~Search ~~controlled~~Mr ~~entities~~ Bruce Akhurst CEO Sensis Pty Ltd

Mobiles

Total mobiles revenue, including wholesale mobiles, grew by 7.6% or $71 million for the quarter, with growth of 8.3% or $238 million for the nine months ended 31 March 2005.

Mobile services revenue increased by 7.6% or $65 million for the quarter. Growth of 8.5% or $220 million was achieved for the nine months. Increases for the quarter were comprised of access fees and call revenues of $21 million, value added services of $41 million and wholesale services of $3 million.

Access fees and call revenue growth of 3.3% or $21 million for the quarter, due to the increase in mobile services in operation of 12% to 8.1 million and increases in mobile voice minutes of 5.6%. Yields have declined due to the impact of promotions such as FreeChat, FlatChat, Free24/7, 18 cents per 5 minutes and capped plans which is reflective of the competitive mobiles environment. These initiatives have impacted the yield for both prepaid and postpaid products. The increases for the quarter were attributable to:

Growth in prepaid revenues of 2.9% or $3 million reflecting a 27% increase in the prepaid services base and an increase in calling minutes of 12%. The reduction in yield is attributable to the increased usage of discounts, which are provided in the form of bonus options that are taken up by the customer on Telstra Prepaid Plus such as 1c per minute and double recharge. In addition, the third quarter saw lower than average additions to prepaid services from lower activations and higher deactivations as the variety of consumer offers increased and competition intensified.

Growth in postpaid revenues of 3.2% or $18 million due to the growth in postpaid services of 3.5% and postpaid calling minutes of 4.9% offset by yield reductions due to the above mentioned chat promotions.

Increase in value added services for the quarter was achieved by:

· Growth in mobile data revenue of 15% or $17 million, attributable to:

	§	Short Message Service (SMS) growth of 8.0% or $8 .3 million as the number of messages grew by 14% to 567 million. Yield reductions resulted from increased discounting initiatives such as Telstra Rewards and Bonus Options which provide free text and picture messages or 15c text messages;
	§	Other mobile data growth of 79% or $9.0 million due to growth in General Packet Radio Service (GPRS) usage including Telstra wireless access protocols (WAP). Data transmission volumes have increased as GPRS phones and hand held computers such as the Blackberry continue to grow momentum in the corporate segment.

	·	International roaming revenue growth of 53% or $21 million for the quarter due to increase in inbound roaming pricing and increased inbound activity due to the continuing growth in international travel.
	·	Messagebank revenue increased by 6.7% or $3 million.

Mobile handset revenue achieved growth of 7.6% or $6 million with 6.8% or $18 million for the nine months ended 31 March 2005. Growth for the quarter was attributable to the increased sales of prepaid phones driven by the growth in the number of prepaid customers.

04/05 Third Quarter Market Update 20 April 2005 Page 3

~~Telstra~~Four ~~Corporation~~Key ~~Limited~~Points ~~and~~• ~~controlled~~More ~~entities~~ to commercial search than search engines • Commercial search is a valuable business driver • Commercial search is an infant, not a grown up • Sensis is well placed to succeed

Internet and IP

Internet and IP solutions revenue grew by 38% for the quarter driven by a $76 million increase in broadband revenue. For the nine months ended 31 March 2005 revenue grew by 35% or $251 million.

• BigPond TM broadband revenue grew by $44 million for the quarter due to a 112% increase in subscribers across ADSL and cable. The growth of this product is attributable to increased internet usage, self install kits and successful broadband marketing campaigns which included new pricing plans. Business DSL has also contributed to the revenue growth with large contract wins and migration to the newer technology. For the nine month period revenue has increased by 64% or $125 million. • Wholesale broadband revenue increased by $32 million for the quarter. Wholesale DSL Layer 2 revenue grew by $39 million due to a 240% increase in SIOs offset by reduced yields resulting from competitive pricing pressures. Flexstream revenue declined due to decreased SIOs as customers migrate to other data products and significant yield reductions aimed at customer retention. Wholesale broadband revenue grew by 79% or $78 million for the nine month period. • Narrowband revenue, representing dial-up internet, has declined by $7 million despite negligible movement in SIOs. This is due to significant price competition in the market and the migration of high yield users to broadband services. For the nine month period dial-up internet revenue has decreased by 4.1%. • IP solutions revenue grew by $16 million for the quarter due to increased IP MAN/Ethernet revenue from major contract wins and extension of coverage on existing services in the government sector. IP WAN revenue also improved due to major network expansions for large corporate contracts as customers migrate from older product technologies such as frame relay and ISDN. IP Solutions revenue has increased by 36% or $39 million for the nine month period.

04/05 Third Quarter Market Update 20 April 2005 Page 4

~~Telstra~~There’s ~~Corporation~~more ~~Limited~~to ~~and~~CS ~~controlled~~than ~~entities~~ search engines Four Weekly CS Unique Usage (% Of 14+ Pop’n) By Category 77.5% 69.0% 20.9% 23.8% 20.9% 30.6% 41.7% 0% 10% 20% 30% 40% 50% 60% 70% 80% Sensis network Sensis print directories Sensis voice Sensis online Online auctions Online classifieds Online search : Source: Roy Morgan Single Source Australia, January – December 2004. Base Australians 14+

PSTN Products

PSTN products revenue has decreased by 4.8% to $1,873 million for the quarter. For the nine months ended 31 March 2005 PSTN products revenue has decreased by 2.8% to $5,845 million. The increase in basic access revenue from the continued impact of rebalancing initiatives has been offset by a decline in basic access lines and volume reductions across the calling products. Calling product volumes were impacted by the timing of the Easter holiday period.

• Basic access revenues grew by 4.5% to $831 million for the quarter due to a price increase in June 2004 as part of the rebalancing initiatives offset by a decline in the number of basic access lines due to competition and migration to other products such as ISDN, broadband and mobiles. For the nine month period basic access revenues grew by 5.2% or $126 million. • Local call revenue has decreased by 18% for the quarter reflecting a 12% reduction in the number of calls due to product substitution to mobiles, fixed to mobiles, internet and ISDN products. Yield has declined by 7% due to competitive prices across all market segments and package discounts offered in the consumer market. Consumer churn to wholesale has also contributed to a lower yield. Local call revenue has declined by 14% for the nine months ended 31 March 2005. • National long distance revenue decreased by 12% for the quarter attributable to an 11% reduction in call minutes due to shorter call durations and product substitution to mobiles, fixed to mobile, internet and ISDN. Yield has also declined due to increased capped calling rates and competitive pricing pressures offset by flagfall increases. For the nine month period national long distance revenue has reduced by 9.9%. • Fixed to mobile revenue has declined by 5% for the quarter attributable to a lower yield resulting from increased competitive pricing pressures in the business sector offset by a higher yield in the consumer market due to flagfall increases. The minutes of use increased 0.5% for the quarter. Fixed to mobile revenue has declined by 1.8% for the nine month period. • International direct® revenue has reduced by 14% for the quarter attributable to a 12% decline in the number of call minutes and a slight decline in yield. This reduction was due to the continued migration to aggressively priced prepaid calling cards and customers using other products such as e-mail and internet chat facilities. For the nine month period international direct revenue has decreased by 12%. • PSTN value added services revenue was flat for the quarter. The decline in Messagebank® has slowed as the impact of customer migration to Telstra Home Message 101TM was felt mainly in the prior year third quarter. Call Return (*10#) usage declined slightly after an increase in calling number display subscriptions and higher call completion rates although the decline has slowed considerable in the third quarter. PSTN value added services revenue has reduced by 4.1% for the nine months.

04/05 Third Quarter Market Update 20 April 2005 Page 5

~~Telstra~~A ~~Corporation~~valuable ~~Limited~~business ~~and~~driver ~~controlled~~Invizage ~~entities~~ Pty Ltd Lead Analysis: Jan — Mar 2005 6.0% 24.3% 18.1% 9.6% 6.1% 2.7% 2.6% 1.3% 2.4% 27.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Yellow Pages® Search engines Sales force Partner referrals General referrals Other Don’t know Other advertising Previous client Publicity Commercial Search: 33.1% : Source: Invizage Technology

Specialised Data

Specialised data revenue decreased by 9.3% for the quarter and 5.8% for the nine-month period, reflecting a decline in mature products such as Leased Lines and DDS (Digital Data Services) where customers have migrated to newer technologies. Frame relay revenue declined, although SIOs have increased as more customers take up IP WAN for which frame relay is the premium access. ATM revenue has increased, despite being in the mature phase of its life cycle, due to increased SIOs and the reallocation of some revenue previously included in frame relay.

ISDN Products

ISDN revenue has declined by 4.8% or $11 million for the quarter and 4.3% or $30 million for the nine-month period. This includes a 27% or $14 million decrease in ISDN data call revenue for the quarter as corporate customers continued to migrate to more technologically advanced products such as IP products. This is partly offset by growth in ISDN access revenue of 5% or $5 million due to the penetration into the SME and consumer markets for ISDN. The number of services grew by 6.3%.

Advertising & Directories

Reported advertising and directories revenues, including revenue generated by Trading Post, increased by $72 million for the quarter and $196 million for the nine month period. After excluding Trading Post revenues, underlying advertising and directories revenue increased by 15% or $35 million for the quarter and 8.3% or $83 million for the nine month period.

For the quarter Yellow Pages revenue has increased by 8.6% or $15 million attributable to the introduction of full-page advertising options into additional categoriesin regional books. White Pages revenue grew by 22% or $10 million due to the continued success of additional colour listing options and higher customer yields in regional books. Other directory products grew by 50% mainly in the area of online advertising and location and navigation products from additional customers.

Intercarrier Services

Intercarrier services revenue grew by 2.3% for the quarter and 2.8% for the nine month period. SMS interconnect revenue and wholesale roaming revenue both increased due to higher volumes. Facilities access revenue increased due to higher demand for access to exchanges, equipment and mobile towers as other carriers seek to expand their infrastructure. These increases were offset by a decline in PSTN terminating revenues due to a yield reduction arising from price rebalancing initiatives and a decline in volumes. Mobiles terminating revenues declined for the quarter due to regulatory driven pricing changes, partly offset by higher volumes from increased mobile services.

Solutions Management

Reported solutions management revenue increased by 79% or $95 million for the quarter. This includes revenue generated by the KAZ group of $84 million and Damovo of $3 million. Revenue for the nine-month period increased 87% or $315 million including revenue generated by the KAZ group of $272 million and Damovo of $8 million. Telstra acquired the KAZ Group in July 2004 and Damovo in September 2004.

04/05 Third Quarter Market Update 20 April 2005 Page 6

~~Telstra~~A ~~Corporation~~valuable ~~Limited~~business ~~and~~driver ~~controlled~~US ~~entities~~ Cost Per Click Rates 2003-9 $0.36 $0.42 $0.45 $0.47 $0.29 $0.40 $0.44 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 2003 2004 2005 2006 2007 2008 2009 Cost per click through (US$) Source: Jupiter Research, Paid Search Through 2009, Volume 2, 2004, pp5

Without the benefit of these acquisitions, underlying solutions management revenues increased by 6.6% or $8 million for the quarter and 9.6% or $35 million for nine-month period. The growth is due to the commencement of significant new radio services construction contracts and an increase in managed wide area networks.

Hong Kong CSL

In local currency (HK$), revenue increased by 8.9% for the quarter and for the nine month period revenue increased by 8.2%. This was achieved through continued strong growth in mobile handset sales due to the move into new market segments and the launch of new handset models with advanced features; along with strong growth in prepaid, international voice and data revenue through MMS handsets and innovative content applications. These increases have been partially offset by a continuing decline in local voice revenue as a result of the aggressive price competition.

In Australian dollars, revenues increased by 7.2% or $12 million for the quarter, which also includes and adverse exchange rate impact of $3 million. For the nine month period revenue increased by 2.8% or $15 million with the exchange rate impact adversely affecting results by $30 million.

TelstraClear

Total revenue growth of 3.0% or NZ$5 million was achieved for the quarter and for the nine month period revenue increased by 3.3% or NZ$16 million. On a stand-alone basis, including intercompany revenue, TelstraClear revenue increased by 3.0% for the quarter and 3.7% for the nine months. Revenue growth was achieved from continued strong retail revenue growth, particularly in the business and government sector and a strong consumer growth from increased PSTN on-net charges and homeplan. This was partially offset by a decrease in wholesale due to rate reductions with international carriers in the wholesale market.

In Australian dollars revenue increased by 9.7% or $14 million for the quarter and for the nine month period increased by 8.2% or $35 million, the exchange rate impact positively affected results by $15 million.

Offshore Services Revenue

Reported offshore revenue has increased by 76% or $28 million for the quarter and included revenue generated by PSINet of $21 million. For the nine months reported revenue increased 117% or $99 million and included PSINet revenue of $51 million. Telstra acquired PSINet in August 2004.

Underlying offshore revenue grew by 19% or $7 million for the quarter and for the nine month period increased by 57% or $48 million. This is primarily due to Global Sales acquiring the customer & network bases from Powergen and Cable Telecom in the UK in October 2003 and February 2004 respectively.

04/05 Third Quarter Market Update 20 April 2005 Page 7

~~Telstra~~An ~~Corporation~~infant, ~~Limited~~not a grown up Print • Directories • Classifieds • Niche publications Voice • Directory assistance • Tele-search • SMS services Online • Directories • Search engines • Classifieds • Auctions • Comparison • Location • Vertical search Wireless • Directories • Search engines • Classifieds • Local business and ~~controlled~~product ~~entities~~ search • Events • Location In-car • Location • Local business search • Local product search Commercial search is fragmenting

Inbound calling products

Inbound calling products revenue declined by 8.3% for the quarter. For the nine month period revenue decreased by 4.5%. Competitive market pressures on prices have resulted in a decline in net yield and the customer base.

Pay TV Bundling

There has been continued rapid growth in Pay TV bundling with revenue increasing by 73% or $30 million for the quarter and 81% or $86 million for the nine-month period. Telstra’s bundled Foxtel subscribers have increased by 25% to 273,000. Telstra now has 52,000 Austar bundled subscribers. The growth in services is due to the introduction of digital TV and a change to the packaging and bonus option introduced in June 2004. Payphones

Payphone revenue has declined by 19% or $7 million for the quarter and 15% or $16 million for the nine-month period. This is from a combined effect of the loss of payphone provisioning contracts and lower usage because of product substitution to prepaid calling cards and mobile phones.

Customer Premises Equipment

Reported customer premises equipment revenue increased by 28% or $13 million for the quarter and 21% or $29 million for the nine-month period. This includes revenue generated from PABX equipment sales for Damovo, which was acquired in September 2004.

Underlying customer premises equipment revenue decr eased by $6 million for the quarter and $10 million for the nine-month period. This is a combined effect of retail competition for fixed line handset sales and product substitution to mobiles.

Other Sales & Services

Reported other sales and services revenue grew by 24% or $36 million for the quarter and included a reduction to revenue of $1 million in the KAZ group, acquired by Telstra in July 2004. For the nine month period reported other sales and services revenue increased by 31% or $135 million and included revenue of $2 million generated by the KAZ group.

Underlying other sales and services revenue grew by 25% or $37 million for the quarter. This included revenue growth from miscellaneous revenue with the introduction of payment processing fees on customer credit card payments $6 million and increased overdue account fees $7 million, commercial recoverable works $8 million including Foxtel Pay TV digital conversion, and external construction revenue $8 million due to increased focus on building and targeting network construction markets. For the nine month period underlying sales and services revenue grew 31% or $133 million which also included a negative prior period accounting adjustment and growth in HFC Cable usage revenue from Foxtel reflecting increased product demand.

Other Revenue

Reported other revenue increased by 56% or $65 million for the quarter, which included the sale of our interests in Intelsat, Ltd and Infonet Services Corporation. Underlying other revenue decreased by 36% or $22 million for the quarter due to the reduction of government receipts from grants and other miscellaneous refunds.

Reported other revenue decreased 41% or $198 million for the nine months ended 31 March 2005 due to the reduction of proceeds from investment sales of $165 million, which included the prior year sale of IBMGSA for $154 million. Underlying other revenue decreased by 43% or $90 million for the nine months due to the sale of mid range servers in the prior year and lower other non-communications plant sales.

04/05 Third Quarter Market Update 20 April 2005 Page 8

~~Telstra~~Sensis’ ~~Corporation~~network ~~Limited~~is ~~and~~well ~~controlled~~placed ~~entities~~ to succeed Wireless Online Voice Search Directories Classifieds Verticals Print Location & Navigation In-car Sensis Wireless Directory Assistance

Service

Telstra continues to provide high service levels across Australia as evident in the recent Australian Communications Authority report for the December 2004 quarter. National Customer Service Guarantee (CSG) performance for connections was 92% and fault re pairs 91%. CSG performance was above 90% in all categories, urban, rural and remote areas.

Outlook

The third quarter trading results are in line with our aspirations to lift revenues close to industry growth rates. In an environment of aggressive price competition and our changing revenue mix we continue to drive productivity improvements everywhere and contain costs to deliver EBITDA and EBIT growth.

For enquiries on this announcement please contact:

John Stanhope		David Anderson
Chief Financial Officer		General Manager, Investor Relations
Telstra Corporation Limited		Telstra Corporation Limited
		Phone: 61 3 9634 8632
		Email: investor.relations@team.telstra.com

04/05 Third Quarter Market Update 20 April 2005 Page 9

~~Market~~Sensis’ ~~Update~~network is well placed to succeed Revenue 0 250 500 750 1000 1H 04 1H 05 Sensis (excluding other) Other Trading Post Group $769m $814m $40m $62m $76m +5.9% Underlying Growth EBIT 0 100 200 300 400 500 1H 04 1H 05 Sensis (including other) Trading Post Group $453m $486m $22m +7.3% Underlying Growth Growth in online & voice Higher 1H due to metro Yellow Pages release in 2Q Trading Post meeting expectations +8.3%

for three months ending 31 March 2005

	Q3 04/05		Q3 04/05		Q3 03/04		Q3 03/04		Reported			Underlying			Underlying
$ millions	Reported		Underlying		Reported		Underlying		Growth %			Growth %			Movement
Mobiles
Mobile services		918		918		853		853		7.6			7.6			65
Mobile handsets		85		85		79		79		7.6			7.6			6
Total Mobiles		1,003		1,003		932		932		7.6			7.6			71
Internet and IP solutions
BigPond narrowband		67		67		74		74		(9.5	)		(9.5	)		(7	)
BigPond broadband		116		116		72		72		61.1			61.1			44
Wholesale broadband		71		71		39		39		82.1			82.1			32
Wholesale internet direct and data		8		8		4		4		100.0			100.0			4
Internet direct		29		29		26		26		11.5			11.5			3
IP solutions		54		54		38		38		42.1			42.1			16
Other		6		6		2		2		200.0			200.0			4
Total Internet and IP solutions		351		351		255		255		37.6			37.6			96
PSTN Products
Basic access		831		831		795		795		4.5			4.5			36
Local calls		302		302		370		370		(18.4	)		(18.4	)		(68	)
PSTN value added services		62		62		62		62		0.0			0.0			0
National long distance calls		244		244		278		278		(12.2	)		(12.2	)		(34	)
Fixed to mobile		378		378		398		398		(5.0	)		(5.0	)		(20	)
International direct		56		56		65		65		(13.8	)		(13.8	)		(9	)
Total PSTN		1,873		1,873		1,968		1,968		(4.8	)		(4.8	)		(95	)
Specialised Data		234		234		258		258		(9.3	)		(9.3	)		(24	)
ISDN Products		218		218		229		229		(4.8	)		(4.8	)		(11	)
Advertising and Directories		314		269		242		234		29.8			15.0			35
Intercarrier services		272		272		266		266		2.3			2.3			6
Solutions management		216		129		121		121		78.5			6.6			8
HK CSL		179		179		167		167		7.2			7.2			12
TelstraClear		158		158		144		144		9.7			9.7			14
Offshore Services Revenue		65		44		37		37		75.7			18.9			7
Inbound calling products		110		110		120		120		(8.3	)		(8.3	)		(10	)
PayTV Bundling		71		71		41		41		73.2			73.2			30
Customer premises equipment		60		41		47		47		27.7			(12.8	)		(6	)
Payphones		29		29		36		36		(19.4	)		(19.4	)		(7	)
Other sales & services
Telstra Information & Connection Services		32		32		30		30		6.7			6.7			2
Card Services		13		13		14		14		(7.1	)		(7.1	)		(1	)
Security products		13		13		13		13		0.0			0.0			0
Customnet & Spectrum		27		27		30		30		(10.0	)		(10.0	)		(3	)
HFCCable TV		15		15		13		13		15.4			15.4			2
Commercial & Recoverable Works		15		15		7		7		114.3			114.3			8
External Construction		21		21		13		13		61.5			61.5			8
Other		51		52		31		31		64.5			67.7			21
Total Other sales & services		187		188		151		151		23.8			24.5			37
Total Sales revenue		5,340		5,169		5,014		5,006		6.5			3.3			163
Other revenue		181		39		116		61		56.0			(36.1	)		(22	)
Total revenue		5,521		5,208		5,130		5,067		7.6			2.8			141
Domestic Sales Revenue		4,934		4,785		4,661		4,653		5.9			2.8			132
Selected Statistical Data
Mobile voice telephone minutes				1,641				1,554					5.6			87
Short Message Service (SMS) (number of messages)				567				499					13.6			68
Mobile services in operation (thousands)				8,059				7,169					12.4			890
Broadband Retail subscribers				718				338					112.4			380
Broadband Wholesale subscribers				761				281					170.8			480
Total Broadband subscribers (thousands)				1,479				619					138.9			860
Narrowband subscribers (thousands)				1,202				1,197					0.4			5
Basic access lines in service				10.17				10.34					(1.6	)		(0.17	)
Local calls (number of calls)				2,045				2,324					(12.0	)		(279	)
National long distance minutes				1,890				2,128					(11.2	)		(238	)
Fixed to mobile minutes				1,075				1,070					0.5			5
International direct minutes				141				161					(12.4	)		(20	)
ISDN access (basic lines equivalents) (thousands)				1,329				1,250					6.3			79

Footnotes: All percentages relate to growth on prior correspoinding period (PCP) Underlying excludes property and investment sales and the impact of Trading Post, KAZ Group, PSInet Group, Damovo and Universal Publishers acquisitions. Statistical data is represented in millions unless otherwise stated, and represents management’s best estimates.

Page 10

~~Market~~Thank ~~Update for nine months ending 31 March 2005~~ You

	Q3 04/05		Q3 04/05		Q3 03/04		Q3 03/04		Reported			Underlying			Underlying
$ millions	Reported		Underlying		Reported		Underlying		Growth %			Growth %			Movement
Mobiles
Mobile services		2,814		2,814		2,594		2,594		8.5			8.5			220
Mobile handsets		283		283		265		265		6.8			6.8			18
Total Mobiles		3,097		3,097		2,859		2,859		8.3			8.3			238
Internet and IP solutions
BigPond narrowband		209		209		218		218		(4.1	)		(4.1	)		(9	)
BigPond broadband		319		319		194		194		64.4			64.4			125
Wholesale broadband		177		177		99		99		78.8			78.8			78
Wholesale internet direct and data		21		21		11		11		90.9			90.9			10
Internet direct		90		90		87		87		3.4			3.4			3
IP solutions		148		148		109		109		35.8			35.8			39
Other		11		11		6		6		83.3			83.3			5
Total Internet and IP solutions		975		975		724		724		34.7			34.7			251
PSTN Products
Basic access		2,531		2,531		2,405		2,405		5.2			5.2			126
Local calls		991		991		1,148		1,148		(13.7	)		(13.7	)		(157	)
PSTN value added services		188		188		196		196		(4.1	)		(4.1	)		(8	)
National long distance calls		771		771		856		856		(9.9	)		(9.9	)		(85	)
Fixed to mobile		1,184		1,184		1,206		1,206		(1.8	)		(1.8	)		(22	)
International direct		180		180		204		204		(11.8	)		(11.8	)		(24	)
Total PSTN		5,845		5,845		6,015		6,015		(2.8	)		(2.8	)		(170	)
Specialised Data		729		729		774		774		(5.8	)		(5.8	)		(45	)
ISDN Products		671		671		701		701		(4.3	)		(4.3	)		(30	)
Advertising and Directories		1,202		1,081		1,006		998		19.5			8.3			83
Intercarrier services		852		852		829		829		2.8			2.8			23
Solutions management		679		399		364		364		86.5			9.6			35
HK CSL		559		559		544		544		2.8			2.8			15
TelstraClear		462		462		427		427		8.2			8.2			35
Offshore Services Revenue		184		133		85		85		116.5			56.5			48
Inbound calling products		341		341		357		357		(4.5	)		(4.5	)		(16	)
PayTV Bundling		192		192		106		106		81.1			81.1			86
Customer premises equipment		167		128		138		138		21.0			(7.2	)		(10	)
Payphones		92		92		108		108		(14.8	)		(14.8	)		(16	)
Other sales & services
Telstra Information & Connection Services		102		102		93		93		9.7			9.7			9
Card Services		45		45		50		50		(10.0	)		(10.0	)		(5	)
Security products		39		39		38		38		2.6			2.6			1
Customnet & Spectrum		84		84		84		84		0.0			0.0			0
HFCCable TV		51		51		35		35		45.7			45.7			16
Commercial & Recoverable Works		44		44		22		22		100.0			100.0			22
External Construction		61		61		47		47		29.8			29.8			14
Other		142		140		64		64		121.9			118.8			76
Total Other sales & services		568		566		433		433		31.2			30.7			133
Total Sales revenue		16,615		16,122		15,470		15,462		7.4			4.3			660
Other revenue		288		120		486		210		(40.7	)		(42.9	)		(90	)
Total revenue		16,903		16,242		15,956		15,672		5.9			3.6			570
Domestic Sales Revenue		15,401		14,961		14,400		14,392		7.0			4.0			569
Selected Statistical Data
Mobile voice telephone minutes				5,045				4,565					10.5			480
Short Message Service (SMS) (number of messages)				1,709				1,427					19.8			282
Mobile services in operation (thousands)				8,059				7,169					12.4			890
Broadband Retail subscribers				718				338					112.4			380
Broadband Wholesale subscribers				761				281					170.8			480
Total Broadband subscribers (thousands)				1,479				619					138.9			860
Narrowband subscribers (thousands)				1,202				1,197					0.4			5
Basic access lines in service				10.17				10.34					(1.6	)		(0.17	)
Local calls (number of calls)				6,457				7,155					(9.8	)		(698	)
National long distance minutes				5,868				6,471					(9.3	)		(603	)
Fixed to mobile minutes				3,281				3,169					3.5			112
International direct minutes				445				499					(10.8	)		(54	)
ISDN access (basic lines equivalents) (thousands)				1,329				1,250					6.3			79

Page 11

~~Telstra~~MEDIA ~~Corporation Limited (ABN 033 051 775 556)~~RELEASE

~~Quarterly~~9 ~~Data Quarter~~June ~~Ended~~2005 ~~31 March~~ 195/2005

	Q1		QTR PCPii			Q2		QTR PCPii			Half 1		YTD PCPii			Q3		QTR PCPii			Q3 YTD		QTR PCPii			Q4		QTR PCPii			Full Year		YTD PCPii			Q1		QTR PCPii			Q2		QTR PCPii			Half 1		YTD PCPii			Q3		QTR			YTD		YTD PCPii
Summary Underlying(I) Quarterly Data	Sep-03		Sep-03			Dec-03		Dec-03			Dec-03		Dec-03			Mar-04		Mar-04			Mar-04		Mar-04			Jun-04		Jun-04			Jun-04		Jun-04			Sep-04		Sep-04			Dec-04		Dec-04			Dec-04		Dec-04			Mar-05		Mar-05			Mar-05		Mar-05
Revenue
Mobiles
Mobile services		848		3.4	%		893		9.2	%		1,740		6.2	%		853		9.6	%		2,594		7.4	%		877		6.6	%		3,470		7.1	%		928		9.4	%		968		8.4	%		1,896		9.0	%		918		7.6	%		2,814		8.5	%
Mobile handsets		97		40.6	%		89		(12.7	%)		186		8.1	%		79		(24.0	%)		265		(4.0	%)		87		(20.9	%)		352		(8.8	%)		95		(2.1	%)		103		15.7	%		198		6.5	%		85		7.6	%		283		6.8	%
Total Mobiles		945		6.3	%		982		6.7	%		1,926		6.4	%		932		5.7	%		2,859		6.2	%		964		3.3	%		3,822		5.4	%		1,023		8.3	%		1,071		9.1	%		2,094		8.7	%		1,003		7.6	%		3,097		8.3	%
Internet and IP solutions		237		24.7	%		231		14.9	%		468		19.7	%		255		28.8	%		724		22.9	%		289		26.8	%		1,013		24.0	%		310		30.8	%		314		35.9	%		624		33.3	%		351		37.6	%		975		34.7	%
PSTN products
Basic access		791		3.4	%		819		3.5	%		1,610		3.5	%		795		2.2	%		2,405		3.0	%		832		11.2	%		3,237		5.0	%		853		7.8	%		847		3.4	%		1,700		5.6	%		831		4.5	%		2,531		5.2	%
Local calls		394		(0.8	%)		384		(3.8	%)		778		(2.3	%)		370		(3.6	%)		1,148		(2.7	%)		356		(8.0	%)		1,504		(4.0	%)		354		(10.2	%)		335		(12.8	%)		689		(11.4	%)		302		(18.4	%)		991		(13.7	%)
PSTN value added services		68		0.0	%		66		(10.8	%)		134		(5.0	%)		62		(12.7	%)		196		(7.5	%)		63		(7.4	%)		259		(7.5	%)		63		(7.4	%)		63		(4.5	%)		126		(6.0	%)		62		0.0	%		188		(4.1	%)
National long distance calls		292		2.5	%		286		(4.0	%)		578		(0.7	%)		278		(3.5	%)		856		(1.6	%)		265		(9.2	%)		1,121		(3.5	%)		265		(9.2	%)		262		(8.4	%)		527		(8.8	%)		244		(12.2	%)		771		(9.9	%)
Fixed to mobile		402		8.4	%		407		6.5	%		808		7.3	%		398		6.1	%		1,206		6.9	%		391		0.5	%		1,597		5.3	%		399		(0.7	%)		407		0.0	%		806		(0.2	%)		378		(5.0	%)		1,184		(1.8	%)
International direct		68		(15.0	%)		71		(12.3	%)		139		(13.7	%)		65		(11.0	%)		204		(13.2	%)		62		(12.7	%)		266		(13.4	%)		61		(10.3	%)		63		(11.3	%)		124		(10.8	%)		56		(13.8	%)		180		(11.8	%)
Total PSTN products		2,015		2.5	%		2,033		0.4	%		4,047		1.5	%		1,968		0.0	%		6,015		0.9	%		1,969		0.7	%		7,984		0.9	%		1,995		(1.0	%)		1,977		(2.8	%)		3,972		(1.9	%)		1,873		(4.8	%)		5,845		(2.8	%)
Data and Internet
Specialised Data		264		(2.9	%)		253		(7.3	%)		517		(5.1	%)		258		(5.1	%)		774		(5.3	%)		260		(7.5	%)		1,035		(5.7	%)		246		(6.8	%)		249		(1.6	%)		495		(4.1	%)		234		(9.3	%)		729		(5.8	%)
ISDN Products		239		(3.6	%)		234		(2.9	%)		473		(3.3	%)		229		1.8	%		701		(1.8	%)		225		(1.3	%)		927		(1.6	%)		231		(3.3	%)		222		(5.1	%)		453		(4.2	%)		218		(4.8	%)		671		(4.3	%)
Advertising and Directories		182		7.7	%		581		3.4	%		764		4.5	%		234		9.3	%		998		5.7	%		301		10.3	%		1,298		6.7	%		213		17.0	%		599		3.1	%		812		6.3	%		269		15.0	%		1,081		8.3	%
Intercarrier services		278		(6.1	%)		284		(0.7	%)		563		(3.3	%)		266		(2.9	%)		829		(3.2	%)		274		(2.1	%)		1,103		(2.9	%)		277		(0.4	%)		303		6.7	%		580		3.0	%		272		2.3	%		852		2.8	%
Solutions management		129		13.2	%		113		(9.6	%)		243		1.7	%		121		7.1	%		364		3.4	%		144		6.7	%		508		4.3	%		140		8.5	%		130		15.0	%		270		11.1	%		129		6.6	%		399		9.6	%
Hong Kong CSL		191		(21.7	%)		186		(22.5	%)		377		(22.1	%)		167		(31.3	%)		544		(25.2	%)		182		0.6	%		726		(20.0	%)		188		(1.6	%)		192		3.2	%		380		0.8	%		179		7.2	%		559		2.8	%
TelstraClear		142		2.9	%		140		3.7	%		282		3.3	%		144		2.1	%		427		3.1	%		148		10.4	%		574		4.7	%		152		7.0	%		152		8.6	%		304		7.8	%		158		9.7	%		462		8.2	%
Offshore Services Revenue		18		(21.7	%)		31		106.7	%		48		26.3	%		37		117.6	%		85					45		400.0	%		130		103.1	%		46		155.6	%		43		38.7	%		89		85.4	%		44		18.9	%		133		56.5	%
Inbound calling products		119		(5.6	%)		119		(4.0	%)		238		(4.8	%)		120		(1.6	%)		357		(4.0	%)		118		(3.3	%)		476		(3.6	%)		117		(1.7	%)		114		(4.2	%)		231		(2.9	%)		110		(8.3	%)		341		(4.5	%)
PayTV		29	NA				35	NA				65	NA				41		583.3	%		106					48		182.4	%		154		569.6	%		57		96.6	%		64		82.9	%		121		86.2	%		71		73.2	%		192		81.1	%
Customer premises equipment		46		(6.1	%)		46		(9.8	%)		92		(8.0	%)		47		(4.1	%)		138		(7.4	%)		45		0.0	%		184		(5.2	%)		42		(8.7	%)		45		(2.2	%)		87		(5.4	%)		41		(12.8	%)		128		(7.2	%)
Payphones		36		(2.7	%)		37		(2.6	%)		72		(4.0	%)		36		(5.3	%)		108		(4.4	%)		33		(5.7	%)		141		(4.7	%)		31		(13.9	%)		32		(13.5	%)		63		(12.5	%)		29		(19.4	%)		92		(14.8	%)
Other sales & service		162		(33.6	%)		119		(47.3	%)		281		(40.2	%)		151		(25.2	%)		433		(35.7	%)		186		(9.7	%)		618		(29.6	%)		176		9.3	%		202		71.2	%		378		34.0	%		188		24.5	%		566		30.7	%
Sales revenue		5,032		0.5	%		5,424		(0.7	%)		10,456		(0.1	%)		5,006		0.8	%		15,462		0.2	%		5,231		3.3	%		20,693		1.0	%		5,244		4.2	%		5,709		5.3	%		10,953		4.8	%		5,169		3.3	%		16,122		4.3	%
Other revenue		52		(3.7	%)		42		(26.3	%)		94		(15.3	%)		55		17.0	%		149		(5.7	%)		64		(38.5	%)		213		(18.7	%)		37		(65.1	%)		44		4.8	%		81		(45.6	%)		39		(36.1	%)		120		(42.9	%)
Total revenue		5,084		0.5	%		5,466		(1.0	%)		10,550		(0.3	%)		5,061		1.0	%		15,611		0.1	%		5,295		2.5	%		20,906		0.7	%		5,281		2.8	%		5,753		5.3	%		11,034		4.0	%		5,208		2.8	%		16,242		3.6	%
Selected statistical dataiv
Mobile voice telephone minutes		1,473		15.9	%		1,538		16.2	%		3,011		16.1	%		1,554		20.6	%		4,565		17.6	%		1,580		15.2	%		6,145		16.9	%		1,678		13.9	%		1,726		12.2	%		3,404		13.1	%		1,641		5.6	%		5,045		10.5	%
Short Message Service (SMS) (number of messages) (vii)		439		50.5	%		488		41.5	%		928		45.6	%		499		30.1	%		1,427		39.8	%		518		27.6	%		1,944		36.3	%		558		27.1	%		583		19.4	%		1,142		23.1	%		567		13.6	%		1,709		19.8	%
Mobile services in operation (thousands)iii		6,720		14.2	%		6,985		14.5	%		6,985		14.5	%		7,169		13.1	%		7,169		13.1	%		7,604		15.8	%		7,604		15.8	%		7,665		14.1	%		7,983		14.3	%		7,983		14.3	%		8,059		12.4	%		8,059		12.4	%
Broadband Retail subscribers		267		57.8	%		288		53.4	%		288		53.4	%		338		61.1	%		338		61.1	%		427		77.8	%		427		77.8	%		537		100.9	%		622		116.2	%		622		116.2	%		718		112.4	%		718		112.4	%
Broadband Wholesale subscribers		172		362.5	%		220		288.9	%		220		289.0	%		281		250.5	%		281		250.5	%		379		213.4	%		379		213.4	%		495		188.6	%		611		177.8	%		611		177.7	%		761		170.8	%		761		170.8	%
Total Broadband subscribers (thousands) (vi)		439		112.6	%		508		107.8	%		508		107.8	%		619		113.5	%		619		113.5	%		806		123.2	%		806		123.2	%		1,032		135.1	%		1,233		142.9	%		1,233		142.9	%		1,479		138.9	%		1,479		138.9	%
Narrowband subscribers (thousands)		1,180		8.9	%		1,178		6.8	%		1,178		6.8	%		1,197		5.6	%		1,197		5.6	%		1,194		3.1	%		1,194		3.1	%		1,209		2.4	%		1,201		1.9	%		1,201		2.0	%		1,202		0.4	%		1,202		0.4	%
- Retail (v)		8.71		(3.9	%)		8.64		(3.8	%)		8.64		(3.8	%)		8.58		(3.9	%)		8.58		(3.9	%)		8.44		(4.3	%)		8.44		(4.3	%)		8.34		(4.2	%)		8.21		(4.9	%)		8.21		(5.0	%)		8.13		(5.2	%)		8.13		(5.2	%)
- Wholesale		1.64		20.5	%		1.71		22.1	%		1.71		22.1	%		1.76		21.1	%		1.76		21.1	%		1.84		18.4	%		1.84		18.4	%		1.91		16.1	%		1.98		15.8	%		1.98		15.8	%		2.04		15.9	%		2.04		15.9	%
Basic access lines in service		10.35		(0.7	%)		10.35		(0.3	%)		10.35		(0.3	%)		10.34		(0.4	%)		10.34		(0.4	%)		10.28		(0.8	%)		10.28		(0.8	%)		10.25		(0.9	%)		10.19		(1.5	%)		10.19		(1.5	%)		10.17		(1.6	%)		10.17		(1.6	%)
Local calls (number of calls)		2,435		(3.7	%)		2,396		(3.8	%)		4,831		(3.7	%)		2,324		(3.0	%)		7,155		(3.5	%)		2,242		(5.8	%)		9,397		(4.0	%)		2,233		(8.3	%)		2,179		(9.1	%)		4,412		(8.7	%)		2,045		(12.0	%)		6,457		(9.8	%)
National long distance minutes		2,193		(6.5	%)		2,150		(6.9	%)		4,343		(6.7	%)		2,128		(6.6	%)		6,471		(6.7	%)		2,049		(8.0	%)		8,520		(7.0	%)		2,002		(8.7	%)		1,975		(8.1	%)		3,977		(8.4	%)		1,890		(11.2	%)		5,868		(9.3	%)
Fixed to mobile minutes		1,041		7.3	%		1,058		7.5	%		2,099		7.4	%		1,070		8.1	%		3,169		7.6	%		1,057		5.8	%		4,226		7.1	%		1,096		5.3	%		1,110		4.9	%		2,206		5.1	%		1,075		0.5	%		3,281		3.5	%
International direct minutes		165		(13.4	%)		173		(11.9	%)		338		(12.7	%)		161		(10.7	%)		499		(12.0	%)		152		(11.8	%)		651		(12.0	%)		149		(9.8	%)		155		(10.2	%)		304		(10.1	%)		141		(12.4	%)		445		(10.8	%)
ISDN access (basic lines equivalents) (thousands)		1,210		(1.2	%)		1,224		2.9	%		1,224		2.8	%		1,250		4.2	%		1,250		4.2	%		1,288		6.2	%		1,288		6.2	%		1,305		7.8	%		1,318		7.7	%		1,318		7.7	%		1,329		6.3	%		1,329		6.3	%
Pay TV bundling		177		N/M			208		N/M			208		N/M			231		N/M			231		N/M			258		103.1	%		258		103.1	%		289		63.1	%		309		48.6	%		309		48.6	%		325		40.7	%		325		40.7	%

TELSTRA APPOINTS NEW CEO

~~Footnotes:~~The ~~(i)~~Chairman ~~Fiscal~~of ~~2004/2005~~Telstra ~~and its comparative year exclude Trading Post~~Corporation, ~~Kaz~~Donald ~~Group,~~McGauchie ~~PSInet Group~~AO, ~~Damovo~~today ~~and~~announced ~~Universal~~that Fiscal 2003/2004 and its comparative year exclude Trading Post and asset sales. (ii) All percentages relate to growth on prior corresponding period. (iii) Mobile Services in Operation(SIOs) are net of deactivated prepaid customers who were outside the ~~recharge~~Board ~~only~~had appointed ~~period~~Solomon ~~and reflects recent changes in deactivation policy in Q4 2003/2004.~~ (ivSol) ~~Statistical~~Trujillo ~~data~~as isChief ~~represented~~Executive inOfficer ~~millions unless otherwise stated. (v) Retail basic access lines in service have been restated to exclude between 105,000~~ and ~~84,000~~as ~~incontact~~an ~~services.~~executive ~~The~~director ~~current period has anexclusion~~ of ~~85,000 incontact services~~ the company. (vi) Broadband subscriber numbers for 03/04 and 04/05 have been restated to include up to 5000 business subscribers previously overlooked in error. (vii) SMS numbers have been restated for 02/03, 03/04 and 04/05 to include up to 20 million messages per quarter of business access manager and online sms previously excluded in error.

~~Page~~Mr 12Trujillo will take up his position on 1 July 2005. He will replace Dr Ziggy Switkowski, who will step down on 1 July 2005.

Mr Trujillo, aged 53, and his wife Corine, will be moving to Australia from California to take up the role.

Mr McGauchie said today: “The Board is delighted with Mr Trujillo’s appointment. We believe he well and truly meets the exacting criteria set down by the Board for the task ahead. We unanimously agree that he is the best person to lead Telstra and believe this is an excellent outcome.

“During his career he has successfully managed fixed line, wireless, broadband and directory businesses – virtually every facet of Telstra’s business. He has enormous depth, expertise and understanding in matters regulatory, operational, financial, marketing and sales and a deep understanding of technology.

“Mr Trujillo has successfully led a number of major cultural and business change programs. We believe Telstra will similarly benefit from his pragmatic innovation, strategic and tactical thinking and outstanding implementation.

“He has the proven ability to deliver substantial top-line growth achievable through a highly developed focus on customers and services.

The Board expects that Mr Trujillo will drive cultural and organisational change throughout Telstra, enabling the corporation to further embrace a service driven, customer focused way of doing business.

Mr Trujillo has been appointed on an ongoing contract. He holds a Bachelor of Business and a MBA degree from the University of Wyoming. He was previously a non-executive Director and then Chief Executive Office of Orange based in London, one of the largest mobile companies in Europe , was the CEO of hi-tech company, Gravitron and spent 26 years with US West Inc, including serving as its Chairman, CEO and President for 5 years.

“His non-executive and then CEO role with Orange included driving growth in the highly competitive European mobile market. His time with US West/Mountain Bell covering diverse geographies such as Colorado, Kansas, New Mexico and Arizona means he has experience running businesses in geographies similar to Australia,” Mr McGauchie said.


		Telstra Corporation Limited
		ABN 33 051 775 556

~~Telstra~~MEDIA ~~Corporation Limited (ABN 033 051 775 556) Normalisation Schedule Year Ended 31 March 2005~~RELEASE

~~This~~Mr ~~schedule~~Trujillo ~~details~~is ~~the~~currently ~~adjustments~~sitting ~~made~~on to the ~~reported~~boards ~~results~~of ~~for~~Pepsi, Target, Gannett, (the ~~nine~~newspaper ~~months~~chain) ~~ending~~and 31EDS. ~~March 2005~~He ~~and~~will ~~2004~~leave toall ~~arrive~~but atone ~~the~~of ~~underlying~~these ~~business~~board ~~performance~~positions.

$m
			Asset /																									Asset /											Reported			Underlying
	March 04/05		Investment															Universal			Total			March 04/05		March 03/04		Investment						Total			March 03/04		Growth			Growth			Underlying
Fixed to mobile	Reported		Sales			Trading Post			KAZ			PSINet			Damovo			Publishing			Adjust.			Underlying		Reported		Sales			Trading Post			Adjust.			Underlying		%			%			M/ment
Mobiles
Mobile services		2,814																				0			2,814		2,594								0			2,594		8.5	%		8.5	%		220
Mobile handsets		283																				0			283		265								0			265		6.8	%		6.8	%		18
Total Mobiles		3,097																				0			3,097		2,859								0			2,859		8.3	%		8.3	%		238
Internet and IP solutions		975																				0			975		724								0			724		34.7	%		34.7	%		251
PSTN Products
Basic access		2,531																				0			2,531		2,405								0			2,405		5.2	%		5.2	%		126
Local calls		991																				0			991		1,148								0			1,148		(13.7	%)		(13.7	%)		(157	)
PSTN value added services		188																				0			188		196								0			196		(4.1	%)		(4.1	%)		(8	)
National long distance calls		771																				0			771		856								0			856		(9.9	%)		(9.9	%)		(85	)
Fixed to mobile		1,184																				0			1,184		1,206								0			1,206		(1.8	%)		(1.8	%)		(22	)
International direct		180																				0			180		204								0			204		(11.8	%)		(11.8	%)		(24	)
Total PSTN		5,845																				0			5,845		6,015								0			6,015		(2.8	%)		(2.8	%)		(170	)
Specialised Data		729																				0			729		774								0			774		(5.8	%)		(5.8	%)		(45	)
ISDN (Access and calls)		671																				0			671		701								0			701		(4.3	%)		(4.3	%)		(30	)
Advertising and Directories		1,202					(113	)											(8	)		(121	)		1,081		1,006					(8	)		(8	)		998		19.5	%		8.3	%		83
Intercarrier services		852																				0			852		829								0			829		2.8	%		2.8	%		23
Solutions management		679								(272	)					(8	)					(280	)		399		364								0			364		86.5	%		9.6	%		35
HK CSL		559																				0			559		544								0			544		2.8	%		2.8	%		15
Telstra Clear		462																				0			462		427								0			427		8.2	%		8.2	%		35
Offshore Revenue		184											(51	)								(51	)		133		85								0			85		116.5	%		56.5	%		48
Inbound calling products		341																				0			341		357								0			357		(4.5	%)		(4.5	%)		(16	)
PayTV		192																				0			192		106								0			106		81.1	%		81.1	%		86
Customer premises equipment		167														(39	)					(39	)		128		138								0			138		21.0	%		(7.2	%)		(10	)
Payphones		92																				0			92		108								0			108		(14.8	%)		(14.8	%)		(16	)
Other sales & service		568								(2	)		0			0						(2	)		566		433								0			433		31.2	%		30.7	%		133
Sales revenue		16,615		0			(113	)		(273	)		(51	)		(48	)		(8	)		(493	)		16,122		15,470		0			(8	)		(8	)		15,462		7.4	%		4.3	%		660
Other revenue		288		(168	)		0			0			0			0			0			(168	)		120		486		(276	)		0			(276	)		210		(40.7	%)		(42.9	%)		(90	)
Total revenue		16,903		(168	)		(113	)		(273	)		(51	)		(48	)		(8	)		(661	)		16,242		15,956		(276	)		(8	)		(284	)		15,672		5.9	%		3.6	%		570

Mr Trujillo will receive a fixed remuneration package of $3 million per annum. He will also receive an annual short term incentive of up to the value of $3 million and an annual long term incentive of up to the value of $4 million. These incentive components are referable to significant performance milestones. He will receive an initial sign on payment of $1 million and fifty per cent of his first year incentive on commencement. The full text of the contract is attached.

~~Page~~Mr 13McGauchie, on behalf of the Board, thanked Dr Switkowski for his valuable contribution during his time at Telstra and wished him every success for the future.

Mr Trujillo said: “Telstra is one of the world’s leading full service telecommunications and information services companies. Dr Switkowski’s legacy is to have positioned the company well to meet the next stage of commercial and technical challenges of the new millennium and continue the development of this industry in one of the most important markets in the world.

“I am looking forward to taking on this challenging role and working with the management team and staff to build on Telstra’s current success,” he said.

Telstra Media Contact:
Michael Grealy 02 92060106 0419 217 343

Telstra’s national media inquiry line is 13 1639 and the Telstra Corporate Communications
Centre is located at: www.telstra.com.au/communications/media


		Telstra Corporation Limited
		ABN 33 051 775 556

~~Telstra~~7 ~~Corporation Limited (ABN 033 051 775 556) Product reconciliation to align comparative figures with the reported format Nine Months Ended 31 March~~ June 2005

	Reported
	previously		Reported
	released		New Hierarchy
	Mar-04		Mar-04		Movement				Amount				Amount
	$m		$m		$m			Included	$m			Excluded	$m
Mobile services		2,583		2,594		11
Mobile handsets		265		265		—
Total Mobiles		2,848		2,859		11		CDMA Wholesale Domestic Resale		11
Internet and IP solutions		713		724		11		Wholesale Access Other (incl HDSL)		10
								Wholesale Internet and Data Other		1
PSTN products
Basic access		2,405		2,405		—
Local calls		1,148		1,148		—
PSTN value added services		196		196		—
National long distance calls		856		856		—
Fixed to mobile		1,206		1,206		—
International direct		204		204		—
Total PSTN products		6,015		6,015		—
Specialised Data		762		774		12		Wholesale ATM		12
ISDN Products		698		701		3						Microlink Rental Semi Permanent Circuits		(3	)
Advertising and Directories		1,014		1,006		(8	)					Yellow Pages Direct		8
Intercarrier services		863		829		(34	)					Wholesale ATM		12
												CDMA Wholesale Domestic Resale		11
												Wholesale Access Other (incl HDSL)		10
												Wholesale Internet and Data Other		1
Solutions management		350		364		14		eBusiness Solutions		14
Hong Kong CSL		544		544		—
TelstraClear		427		427		—
Various controlled entities (excluding HK CSL & TClear)		134		—		(134	)					Offshore services revenue		85
												HFC Cable TV		35
												eBusiness Solutions		14
Offshore services revenue		—		85		85		Offshore services revenue		85
Inbound calling products		357		357		—
Pay TV bundling		—		106		106		Pay TV Bundling		106
Customer premises equipment		138		138		—
Payphones		108		108		—
Other sales & service		499		433		(66	)	Microlink Rental Semi Permanent Circuits		(3	)	Pay TV Bundling		106
								HFC Cable TV		35
								Yellow Pages Direct		8
Sales revenue		15,470		15,470		—				279				279
Other revenue		486		486		(0	)
Total revenue		15,956		15,956		(0	)			279				279

Mr Solomon D Trujillo

~~Page~~Dear 14Solomon On behalf of the Board of the Telstra corporation, (the Board), I am very pleased to offer you employment in the role of Chief Executive Officer of Telstra Corporation Limited (‘Telstra’ or the “Company”). The terms of this offer are stated in the following.

Further, I am pleased to confirm that you will be appointed as a Director of the Company with effect from 1 July 2005. In accordance with and subject to the Company’s constitution and the Corporations Act, you will remain a Director of the Company while you hold the role of Chief Executive Officer.

1	ENGAGEMENT

	1.1	The commencement date of your employment with Telstra under this Agreement is 1 July 2005.

	1.2	You shall exercise the powers and perform the duties consistent with the office of Chief Executive Officer as may be delegated or assigned to you by the Board from time to time. The Board will not delegate or assign to you powers or duties that are materially inconsistent with the status of the office of Chief Executive Officer.

	1.3	You will report directly to the Board and must provide prompt and full information of your conduct of the business and affairs of Telstra to the Board and conform and comply at all times in all material respects with the reasonable directions given to you by the Board.

	1.4	A close and constructive relationship with the Chairman of the Board will be critical to your success in this role. The Chairman will be your principal point of contact and referral between Board meetings.

	1.5	You will comply in all material respects with Company policy, Telstra Business Principles and the Telstra Code of Conduct.

	1.6	This offer of employment is conditional upon you having, during your employment with Telstra, a valid and current working visa as issued by the Department of Immigration and Multicultural and Indigenous Affairs to live and work in Australia and fulfil the duties of your position and your obligations under this Agreement.

2	RELOCATION

	The Company will in accordance with Company policy provide you with assistance with the relocation of yourself and your immediate family to Melbourne or Sydney at the commencement of this Agreement, regular return home and family visits during the period of the Agreement, and repatriation to your home country on completion of the contract or on termination.

3	PERFORMANCE

	3.1	You are required to perform your role in a proper and efficient manner. You will be expected to devote your time, attention and energy to the performance of your duties and achieving your accountabilities and to use your best endeavours to promote and enhance the interests of the Telstra Group, in a manner that is consistent with the Telstra Values.

	3.2	Following your appointment, the Board will, following consultation with you, establish Key Performance Indicators (KPI) for your role. The Board may review the KPIs from time to time, following consultation with you.

	3.3	Except with the written consent of the Chairman of the Board which will not be unreasonably withheld, you must not undertake, be employed in connection with or have any interest in any other business or profession during your employment under this Agreement, other than by way of holding any shares or other securities which are publicly listed or in a private family company or otherwise available to the general public by way of investment.

4	TOTAL PACKAGE

	The Total Package Summary (Attachment 1) annexed to this Agreement includes details of your remuneration package. No other remuneration arrangements exist outside this framework unless explicitly approved by the Board.

	You will be eligible to participate in the Telstra Short Term Incentive Plan (STIP) and Long Term Incentive Plan (LTIP) as part of your Total Package in accordance with the design of the STIP and LTIP as varied from time to time. The benefits arising from participation in the STIP and LTIP also depend on your performance and the performance of the Company.

	The attached summary provides your remuneration from your commencement date stated in clause 1.1. This will be reviewed from October each subsequent year beginning in 2006. The performance of the company, and your own performance, will influence these reviews. Any change to your remuneration package will be detailed in a new Remuneration Summary. The Fixed Remuneration and the maximum percentage of Fixed Remuneration represented by Short Term Incentive Plan and Long Term Incentive Plan targets will not decrease.

5	SIGN ON ARRANGEMENTS

The following sign on arrangements will apply on commencement of your employment:

	(a)	In recognition of the disruption to you involved in accepting the employment and the opportunities you will forgo as a result, Telstra will pay you a once-off sign–on bonus of AUD1,000,000.00 (less taxation deductions as required by law); and

	(b)	Telstra will pay you a sign-on incentive in the amount of 50% of your maximum benefit under the STIP in respect of your participation in the STIP for the 2005/2006 financial year (AUD1,500,000.00 less taxation deductions as required by law). An amount equivalent to this sign-on incentive will be deducted from the benefit you would otherwise receive



		9 June 2005		page 2

under the STIP at the conclusion of that year. However, you will not be required to repay the sign-on incentive in the event that it exceeds the amount payable to you under the STIP.

6	SUPERANNUATION

	A company superannuation benefit is included in your Fixed Remuneration. At all times you must allocate at least the minimum Superannuation Guarantee (as varied from time to time) to a complying superannuation scheme in accordance with Telstra Policy. Additional superannuation contributions above this amount can be paid from your Total Remuneration (including the sign on payment under Clause 5(a)), subject to statutory limits.

	Provided that you elect to make the Telstra Superannuation Scheme your principal superannuation scheme, you will be provided with Death and Disability insurance in accordance with the rules of the Scheme.

LEAVE

	7.1	You will accrue annual leave and long service leave in accordance with Telstra policy. Leave can be taken at a time agreed between you and the Board.

	7.2	Sick leave will be by agreement with the Board.

8	TERMINATION OF YOUR EMPLOYMENT

	8.1	Your employment may be terminated by either party giving thirty (30) days written notice to the other party or such other period as may be agreed by the parties in writing.

	8.2	If the Board terminates your employment on notice, you may be required to remain in Telstra’s service for all or part of the notice period; be paid at your Fixed Remuneration rate in lieu of all or part of the notice period; or be paid at your Fixed Remuneration rate for the notice period but not required to attend for work during all or part of the notice period. This will be determined by the Board following consultation with you.

	8.3	The Board may terminate your employment if:

	(a)	you commit any act of serious misconduct, which includes a material breach of the written policies of Telstra generally applicable to senior executives and which have been communicated to you, or Telstra’s Code of Conduct, or gross negligence; or

	(b)	you engage in any conduct that in the reasonable good faith opinion of the Board materially adversely affects the reputation of the Company.

		In the event of such termination you will be entitled only to Fixed Remuneration to the date of termination, which shall be immediate. Further, you will not be entitled to any payment under the Short Term Incentive Plan or Long term Incentive plan and any rights to shares that have not been vested to you or not exercised by you prior to the date of termination will lapse.

	8.4	If the Board terminates your employment for any reason other than in accordance with clause 8.3, or if you terminate your employment for Good Reason, you will receive, in addition to any payment in lieu of notice:

(a)

a termination payment of

(1)

twenty four (24) months Fixed Remuneration if the termination occurs within the first twelve (12) months of your employment; or



		9 June 2005		page 3

(2)

twelve (12) months Fixed Remuneration, if the termination occurs after the first twelve (12) months of your employment.

	(b)	a pro-rata payment in respect of your participation in the STIP for the year in which your termination occurs in accordance with the design of the STIP as varied from time to time. As the employment relationship has ceased, you will not be eligible to pro-rata rights to shares in respect of that year. However, you will receive the equivalent value of this benefit in cash based on achievement of the STIP targets. Further, any rights to shares previously provided under the STIP not vested to you at the time of the termination will be vested to you upon termination of your employment;

	(c)	your allocation of rights to shares as a result of your participation in the LTIP up to the time of your termination, which will vest in accordance with the performance hurdles and timetable for the exercise of such rights under the terms of the LTIP as at the time of allocation to you.

	(d)	any California tax penalties or interest on taxes due to an early return to California will be reimbursed and grossed up by Telstra.

	(e)	In this clause 8.4, “Good Reason” means:

	(1)	except where agreed between the parties, any material diminution of title, authority, status, duties or responsibilities contemplated by this agreement;

	(2)	any change in reporting relationship as a result of which you report to any person other than to the Board or its Chairman;

	(3)	any material failure by the Company to comply with the provisions of clause 4, including any failure to pay the Fixed Remuneration, STIP, LTIP or any other amounts when due; or

	(4)	any material breach by the Company of its obligations under this Agreement.

		You acknowledge and agree that in part the payments in clause 8.4(a), (b) and (c) are to compensate you for the restraint agreed to in Clause 9.

	8.5	On commencement of your employment, and from time-to-time as requested by the Company, you are required to seek advice from a mutually agreed upon taxation adviser (whose reasonable costs shall be paid by the Company) with respect to your Californian taxation obligations and to take all reasonable actions in accordance with this advice to ensure the arrangements in clause 8.4(d) do not incur unnecessary cost to the Company.

	8.6	If your employment terminates as a result of disability, death or by you reaching retirement as defined by the rules of the STIP and LTIP, you (or your estate) will receive the benefits under clause 8.4(b) and 8.4(c) above.

	8.7	Subject to clause 8.8 below, if you terminate your employment in accordance with clause 8.1:

(a)

within three years of your commencement date:

(1)

you will not be eligible to receive any payment or other benefit in respect of the STIP for the year in which your termination occurs; and



		9 June 2005		page 4

(2)

you will receive a pro-rata allocation of rights to shares as a result of your participation in the LTIP up to the date of your termination in accordance with the rules of the LTIP.

(b)

after three years of your commencement date:

	(1)	you will receive a pro-rata payment in respect of your participation in the STIP for the year in which your termination occurs in accordance with clause 8.4(b) above; and

	(2)	you will receive your allocation of rights to shares as a result of your participation in the LTIP up to the time of your termination, which will vest in accordance with the performance hurdles and timetable for the exercise of such rights under the terms of the LTIP as at the time of the allocation to you.

8.8

If you terminate your employment under clause 8.1 as a result of a Change of Control of the Company, within six months of such Change of Control, then you will receive the benefits set out in clause 8.4 as if the Board had elected to terminate your employment in accordance with that clause. For the purposes of this clause, “Change of Control” means any entity, other than the Commonwealth of Australia or an entity created or controlled by the Commonwealth of Australia, gaining a controlling interest of the Company in accordance generally accepted Australian accounting standards.

9	FUTURE EMPLOYMENT

	9.1	For the purposes of this clause, the expression “the business of Telstra” includes any telecommunications business or any business of a like nature to that conducted by Telstra and which operates in the Australian and/or New Zealand markets.

	9.2	If your employment with Telstra ceases for any reason you must not (without the prior written consent of Telstra) be employed by, or provide services as an agent, independent contractor or in any other capacity to any business that is directly competitive with the business of Telstra in a material way, whether in Australia or New Zealand, for a period of six months from the date of the termination of your employment with the Company. For the purposes of this sub-clause 9.2, the parties acknowledge that at the time of entering into this Agreement, material competitors of Telstra are Optus, Telecom New Zealand, Vodafone Australia and New Zealand and Hutchison Australia.

	9.3	The parties acknowledge that part of the remuneration and benefits, including, but not limited to, the notice and termination payments set out in clause 8, provided to you by Telstra is specifically referable to this obligation and your agreement to this term is an acknowledgment that this term is reasonable and goes no further than is necessary to protect the interests and Confidential Information of Telstra and its Related Bodies Corporate.

	9.4	It is intended by the parties that the restraints contained in this clause will operate to the maximum extent. Further, the parties agree that if any court were to find any aspect of this clause to be void or unenforceable but that it would be valid if part of the wording was deleted or the period or the area was reduced, the restraints will apply with such modifications as may be necessary to make it valid and effective.

10	BENEFITS

10.1

You will be provided with telecommunications and related products, services and equipment for business, personal and domestic use. In addition, Telstra



		9 June 2005		page 5

		will pay for the travel and accommodation of your spouse in accordance with normal Telstra policy when travelling with you on Company business.

	10.2	You will be provided with health insurance in accordance with Telstra Policy.

	10.3	The Company will reimburse you for all appropriate business expenses in accordance with the terms of the Company’s policies and procedures in effect from time to time.

11	INDEMNITY

	As you are appointed to positions of statutory responsibility and accountability in companies formed or acquired by Telstra, the Telstra Directors’ and Officer Liability Policy will apply.

12	CONFIDENTIALITY

	12.1	Confidential Information means any information in respect of the Company or the Company’s business (including, but not limited to, any idea, concept, process or know-how) which is not in the public domain (other than as a result of a breach of the Company’s confidence).

	12.2	You must:

	(a)	keep any Confidential Information of which you become aware during the course of your employment secret and confidential, except to the extent that you are required by law to disclose it;

	(b)	take all reasonable and necessary precautions to maintain the secrecy and prevent the disclosure of any Confidential Information; and

	(c)	not, except in the ordinary and proper course of employment with the Company, disclose Confidential Information to any third party without the prior written consent of the Board.

12.3

Your obligations under this clause survive the termination of your employment

13	INTELLECTUAL PROPERTY

	13.1	Intellectual Property means all present and future rights to intellectual property including any inventions and improvements, trade marks (whether registered or common law trade marks), designs, copyright, any corresponding property rights under the laws of any jurisdiction and any rights in respect of an invention, discovery, trade secret, secret process, know-how, concept, idea, information, process, data or formula.

	13.2	Subject to any express written agreement to the contrary, all Intellectual Property created by you in the course of your employment with the Company automatically vests in the Company.

	13.3	You must do all things necessary or desirable to vest in the Company ownership of any Intellectual Property created by you in the course of your employment with the Company, including executing any documents which are reasonably required by the Company to give effect to clause 13.1.

	13.4	You must disclose to the Company any discovery, invention, secret process, system or improvement made or discovered by you during the course of your employment with the Company in connection with or in any way affecting or relating to the Company’s business or capable of being used or adapted for use by the Company or in connection with its business.

	13.5	Your obligations under this clause survive the termination of this agreement.



		9 June 2005		page 6

14	AUSTRALIAN TAXATION EQUALISATION

14.1

The Australian Government has announced in the 2005 Budget that it proposes to grant an exemption for temporary residents from Australian taxation on most of their foreign source income. More specifically, the measure will:

	(a)	Exempt foreign source income of temporary residents for four years;

	(b)	Ensure that no capital gain or loss would arise on the disposal of foreign assets by temporary residents for four years;

	(c)	Remove interest withholding tax obligations of temporary residents for four years; and

	(d)	Extend the existing four year exemption from the foreign investment fund rules for temporary residents.

		If the legislation to give effect to this measure is not passed with effect from 1 July 2005, the Company will provide you with taxation equalisation so that the net Australian taxation result for you will be the same as if the legislation had been passed to give effect to this measure with effect from 1 July 2005.

	14.2	If the legislation is not passed, or is not passed with effect from 1 July 2005, you are required to seek advice from a mutually agreed upon taxation adviser (whose reasonable costs shall be paid by the Company) with respect to your foreign source income and to take all reasonable actions in accordance with this advice to ensure these arrangements do not incur unnecessary cost to the Company.

	14.3	The above taxation equalisation arrangement does not apply to taxation differentials which would apply irrespective of whether or not the proposed legislation is passed. In addition, you should be aware that under the proposed legislation you would lose the benefit of this measure if you apply for permanent residency in Australia.

15	ENTIRE AGREEMENT

		This agreement is made under the laws of Victoria. Please indicate your acceptance of the terms and conditions outlined in this letter by signing the duplicate copy where indicated on each page and returning it to me as soon as possible

		This document together with any Attachments records the agreement between us. No other negotiations, understandings, contracts, agreements, representations, warranties, memoranda or commitments will affect the terms and conditions of your employment by Telstra. To the extent that there is any inconsistency between this Agreement and any Telstra policy, procedure or arrangement, the terms of this Agreement will prevail. This Agreement may only be varied and any right or obligation under it may only be waived in writing.

* * *

	The Board and I look forward to working closely with you.

	Yours sincerely



		9 June 2005		page 7

Donald McGauchie
Chairman, Telstra Corporation.

I confirm acceptance of the terms and conditions set out in this letter


Solomon Trujillo		Date



		9 June 2005		page 8

Attachment 1

REMUNERATION PACKAGE FRAMEWORK

In accordance with Telstra’s Remuneration Framework, the details of your remuneration package are summarised below:

Fixed Remuneration is the annual cash component of your remuneration which includes salary, superannuation, salary package benefits and any fringe benefit tax incurred by Telstra in providing your remuneration package. When you commence in this role this will be $3,000,000 and it will be reviewed annually from October each year in accordance with clause 4.

Short Term Incentive Plan (STIP) is an “at risk” element of your Remuneration and is to be paid based on performance against metrics set by the Board each year (as amended or replaced from time to time). You can achieve up to a maximum value equivalent to 100% of your fixed remuneration where you achieve personal targets set for you by the Board. This will require significant performance by the Company and you personally. The actual value you receive will depend on your performance and that of the Company. In addition, the Board will set gateway targets. A performance scale exists between the gateway targets and your personal targets.

50% of resulting value of the STIP will be provided to you in cash with the balance provide in the form of rights to Telstra shares which will vest to you 1/3^rd after 1 year, 1/3^rd after 2 years and 1/3^rd after three years. The volume weighted average price (VWAP) for the five days prior to allocation will be used to calculate the numbers of rights which will be allocated to you. The number of shares that vest will be adjusted for dividends declared for the period that the right has been held in trust.

Long Term Incentive Plan (LTIP) is delivered through participation in the Company Long Term Incentive Plan which is currently allocated in the form of Performance Share Rights. These will be allocated equivalent to the value of 133^1/3% of your Fixed Remuneration for achieving the pre-defined target hurdles which have been set for you personally by the Board. The achievement of these targets require significant performance by the Company. The Board will also set a gateway target, whereby equity to the value of 100% of your Fixed Remuneration may vest. A linear scale will exist between these two targets. The current LTI policy of the Board provides for performance rights to be allocated based on the volume weighted average share price over the five (5) days prior to allocation. This price is not discounted in determining the number of performance rights which are allocated to you. Under the current plan design allocations are made annually.

Total Package is the aggregate of your Fixed Remuneration, and any value you receive under the Short Term Incentive Plan and the Long Term Incentive Plan.

NOTES:

1. Variation to Plans:

The design of the Short Term Incentive Plan and the Long Term Incentive Plan may change from time to time to maintain alignment with the Company’s strategy and objectives. When this occurs these changes will be discussed with you. These changes will not reduce the remuneration value of these components of your remuneration package.



		9 June 2005		page 9

2. Salary Package Benefits

You will be able to receive your fixed remuneration, less pay as you go tax (PAYG) and superannuation, as cash, or in other benefits available through the Company’s salary package arrangements.



		9 June 2005		page 10

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TELSTRA CORPORATION LIMITED ~~/s/ Douglas Gration~~ Name: Douglas Gration Title: Company Secretary Date: 209 ~~April~~June 2005

Table of Contents

Table of Contents

Filing Compare · TELSTRA CORP LTD