Millions of Aussies to be slugged with higher internet bills - what it means for you

Millions of Australians will be slammed with an increase to their internet bills in the latest blow to households during the cost-of-living crisis.

NBN Co raised its wholesale pricing for residential plans on July 1, with the major telcos due to pass on the increases to Aussie households.

The cost of the more affordable NBN 25 Mbps plans and faster NBN 50 Mbps options will jump by around $5 a month.

The increase come less than a year after Aussies copped a similar hike, bringing the total rise to between 10 and 13 per cent since October, the Courier Mail reported.

The latest price rises will impact around 70 per cent of Aussie homes, with Telstra’s standard NBN plan rising to over $100 a month for the first time.

Telstra, Optus, Aussie Broadband, Dodo, Superloop, iPrimus and Exetel have told customers about the July price hikes and the other telcos are likely to follow.

Australia's biggest internet service provider Telstra has raised the price of its faster NBN 50 Mbps plan from $100 to $105 a month. 

The NBN 25 Mbps plan has jumped from $85 to $89.

While prices of the standard NBN plans will increase, some more expensive and fast ones, including NBN 250 Mbps and 1,000 Mbps, will actually drop.

For example, Telstra's NBN 1000 Mbps plan is expected to drop by $20 a month. 

Shadow Communications spokesman David Coleman accused the federal government of being 'completely out of touch with the cost of living pain that families are going through'. 

'Incredibly, the Albanese Government has backed massive NBN price increases that are deliberately designed to hit families on low cost plans the hardest,' he said. 

Communications minister Michelle Rowland refuted the Coalition’s criticism, arguing NBN wholesale prices for the cheapest NBN plans were 'cheaper today than they were 12 months ago'.

Over the next four years, the NBN is set to receive a $2.4 billion funding boost from the Albanese government, with Ms Rowland saying privatisation was not an option.

Joel Gibson, from telco comparison site WhistleOut.com.au, told 9News NBN Co is trying to incentivise Aussies to opt for higher internet speed and said these higher speeds are not necessary.

'For a typical four-person household, a Standard NBN 50 plan is enough,' he said.

'The ACCC's "Netflix test" has found that 99 per cent of Standard NBN plans can stream Netflix in HD on 4 screens simultaneously.'