TELSTRA GROUP LIMITED — Audit Report / Information 2006

Dec 12, 2006

13 December 2006

The Manager

Company Announcements Office Australian Stock Exchange 4^th Floor, 20 Bridge Street SYDNEY NSW 2000

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

Telephone 03 9634 6400 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Announcement pursuant to Listing Rule 3.16.3 - Change of Auditor

Telstra Corporation announced today that following the completion of T3 the Auditor-General has resigned as Telstra's auditor, as foreshadowed in the T3 share offer prospectus. Ernst & Young has been appointed as Telstra's auditor, having acted as agent of the Auditor-General to assist in performing independent external audit duties since fiscal 2000. Ernst & Young's appointment extends to the year ending 30 June 2009, subject to confirmation of their appointment at Telstra's 2007 annual general meeting.

Yours sincerely

Pont braking

Douglas Gration Company Secretary