When Australian businesses migrate from copper PSTN lines to VoIP on the NBN, fax is one of the first things to break. The failure mode is usually intermittent rather than total: some faxes go through, others fail with a no-answer or mid-transmission error, and the pattern is unpredictable. This drives IT support time and creates reliability problems in industries where fax is still legally or operationally required: healthcare, legal, government suppliers, some financial services, and some manufacturing operations.
The core issue is that traditional fax was designed for the analogue PSTN network. Traditional Group 3 fax uses T.30 procedures together with modem modulation standards such as V.17 and, for Super G3 fax, V.34. VoIP converts audio to digital packets, compresses them, and reassembles them at the other end. A process that introduces slight timing variations (jitter) that are inaudible to the human ear but catastrophic to fax modems.
If you are ready to compare cloud phone providers that support T.38 fax or offer a clear path for fax users, our guide to the best phone system for small business in Australia covers the leading AU providers, what each supports natively, and per-user pricing.
Fax is one of the edge cases most comparisons between cloud and traditional phone systems skip over. Our guide to cloud phone systems vs traditional phones for Australian businesses covers the full switch including what you gain, what you give up, and how to handle legacy services like fax during the transition.
Why Traditional Fax Fails Over VoIP
Fax machines communicate via analogue modem tones. The fax protocol involves a handshake sequence (capability negotiation), followed by a data transmission phase, followed by a disconnect signal. This handshake is time-sensitive and assumes a consistent audio path with no packet loss, minimal jitter, and no audio compression.
VoIP systems use codec compression (G.711, G.729, Opus) to reduce bandwidth requirements. G.711 avoids high-compression speech coding, but fax pass-through over RTP remains susceptible to packet loss, jitter and latency in the IP network. G.729 is a low-bit-rate speech codec, and modulated fax signals often cannot pass through it correctly.
Packet loss compounds the problem. ECM can detect corrupted fax blocks and request retransmission, but fax pass-through remains highly sensitive to sustained packet loss and jitter. The impact varies with ECM, transmission rate, the burstiness of packet loss, jitter, gateway configuration and fallback behaviour.
The result: a fax machine plugged into the RJ11 port of an NBN-connected ATA (Analogue Telephone Adapter) works sometimes and fails unpredictably. The failure pattern does not correlate obviously with internet speed. It correlates with jitter and packet loss on the network path, which vary throughout the day.
T.38: The Standard Designed to Fix This
T.38 (also called Fax over IP or FoIP) is an ITU standard specifically designed to address the fax-over-VoIP problem. Instead of trying to pass raw fax tones through a VoIP audio stream, T.38 re-encodes the fax data at a higher level. Essentially treating the fax as data rather than audio. And uses a more robust packet transmission method (T.38 uses redundancy to compensate for packet loss in a way that standard RTP does not).
T.38 can work reliably in the right conditions:
- T.38 must be supported across the IP fax-relay path, including the relevant gateways, ATAs and carriers. Conventional analogue fax machines themselves are not T.38 endpoints and do not need to support it.
- The network path must have low jitter and packet loss. Even T.38 degrades under poor network conditions, just less catastrophically than analogue-over-VoIP.
- The ATA (analogue telephone adapter) or FXS gateway must support T.38 pass-through. Not all ATAs do.
The problems with T.38 in the Australian market:
- Many Australian VoIP providers and SIP trunk carriers do not support T.38, or support it only on specific plan tiers.
- Many receiving fax machines (especially older models still in use in healthcare and legal environments) do not support T.38.
- Even with T.38 support on both ends, some combinations of VoIP provider, SIP trunk, ATA, and fax machine produce intermittent failures that are difficult to diagnose and resolve.
T.38 is worth trying if both ends support it, but it is not a guarantee of reliable fax operation. The businesses that need truly reliable fax transmission typically use one of the alternative approaches below.
Practical Options for Australian Businesses That Still Need Fax
Option 1: Cloud Fax Service (Recommended for Most)
A cloud fax service replaces your physical fax machine with an internet-based service that receives faxes as PDF email attachments and lets you send faxes from a web portal or email. Popular cloud fax services with an Australian-accessible offering include eFax and Fax.Plus, FaxBetter is a real service but is strongly North America-oriented, confirm it actually serves Australian numbers before choosing it.
How it works: you get a fax number (can be your existing fax number if it is ported, or a new number). Incoming faxes are received by the service's infrastructure, converted to PDF, and emailed to you. Outgoing faxes are sent via email (attach a PDF, address it to [faxnumber]@fax-service.com) or via a web portal. The physical fax machine is retired.
Advantages:
- Generally more reliable than in-band fax over a consumer VoIP connection, but subject to the provider's service levels and external carrier availability. Fax transmission happens on dedicated fax infrastructure, not over your NBN connection
- No physical machine to maintain, jam, or run out of paper
- Faxes can arrive as PDF files; searchable text requires OCR support from the service or separate document-processing software.
- Send and receive from anywhere. Works from a mobile phone
- Monthly cost: typically $15 to $40/month for a small business volume plan
Considerations:
- You need to port your existing fax number to the cloud fax service. This requires your number to be portable (geographic numbers are portable; some integrated fax-only numbers may be more complex)
- Staff who are accustomed to printing a document and faxing it physically need to learn a new workflow (upload PDF to a web portal or email it)
- Some regulated industries have specific requirements about electronic records. Confirm a PDF fax record satisfies your obligations before retiring the physical machine
Option 2: Keep One Copper Line Specifically for Fax
A separate copper PSTN fax line may remain available at some addresses, but it is generally not an option after migration in NBN fixed-line areas; availability requires address-specific service qualification. This is a hybrid approach that is more common than it might sound. Many medical practices, law firms, and government suppliers operate this way.
The copper line is completely independent of your NBN connection. Fax reliability over copper depends on the condition and maintenance of the particular service and network. The trade-off is the ongoing cost of the copper line: Pricing varies by provider and address; Telstra currently lists BusinessLine Part at $55 per month plus calls, and PSTN availability is subject to service qualification.
Important timing consideration: Telstra is progressively retiring the copper PSTN network as NBN rollout progresses. In areas where NBN has been fully activated, copper PSTN services are eventually being disconnected. Check whether copper PSTN lines are still available at your address and for how long. In many CBDs and urban areas, the PSTN retirement timeline is known; in others it is still being determined. If you are in an area where copper is being retired, the cloud fax option becomes a more immediate necessity.
For context on the copper shutdown timeline, see our guide to the PSTN shutdown in Australia.
Option 3: Dedicated Fax ATA with T.38
An ATA (Analogue Telephone Adapter) converts an analogue fax machine signal to a digital SIP connection. Using a dedicated, high-quality fax ATA. Rather than the built-in ATA on an NBN modem. With T.38 support can significantly improve fax reliability over VoIP.
The Cisco SPA112 is obsolete and should not be recommended for a new deployment; verify a currently supported T.38-capable ATA against the provider's interoperability requirements. These devices support T.38 fax relay natively and include jitter buffers optimised for fax rather than voice. They are configured with dedicated SIP credentials from your VoIP provider's T.38-capable fax line.
This approach is more reliable than plugging a fax machine into the NBN modem's phone port, but it requires: your VoIP provider to offer T.38 fax SIP lines (not all do), the receiving fax machines to support T.38, and some technical configuration to get the ATA settings right. Allow time for initial configuration and testing; the time required varies with provider provisioning, SIP interoperability, network troubleshooting and technician experience.
Option 4: FXS Gateway for Larger Fax Volumes
Businesses that send or receive large volumes of faxes (healthcare with multi-line fax operations, large legal practices, government agencies with bulk document workflows) may benefit from an FXS gateway: a device that connects multiple analogue fax machines to a SIP trunk, with T.38 support at a hardware level that exceeds what a single ATA provides.
Yeastar TA800 and Sangoma Vega gateways are examples of multiport FXS gateways with T.38 support. This is a more complex and expensive configuration (hardware cost $300 to $2,000+ depending on port count) and is only worth considering for businesses with genuine high-volume fax requirements that cannot be met by cloud fax services.
Fax Requirements by Industry: What Australian Regulations Actually Require
Many Australian businesses continue using fax out of habit or vague compliance concern rather than a specific legal requirement. Before investing in a fax continuation strategy, it is worth checking whether fax is actually required:
Healthcare: The My Health Record system and e-referral platforms (HealthLink, Argus) have dramatically reduced the genuine need for fax in many healthcare contexts. Many pathology requests, referrals, and clinical communications can now be transmitted digitally through compliant channels, though actual availability still varies by practice, specialist and system. However, some older healthcare systems and some specialists still operate primarily via fax. Australian RACGP guidelines do not mandate fax; they mandate secure communication of clinical information. Whether a cloud fax service is appropriate must be assessed against applicable privacy, security, access-control, storage and third-party-provider obligations; encryption in transit and audit trails alone do not establish compliance.
Legal: Courts, tribunals, and government agencies in Australia have progressively moved to email and online filing systems. Physical fax for court filings is largely obsolete in most jurisdictions. Check the specific requirements of courts or agencies you file with. Documented procedures for email and electronic lodgement may supersede fax, depending on the rules and practice directions of the specific court, tribunal or agency.
Government suppliers: Procurement and invoicing processes have largely moved to electronic document management systems. If a government agency is requiring fax for procurement communications, this is unusual and worth querying directly. They may have an electronic submission alternative that is not well-publicised.
Financial services: ASIC and APRA-regulated entities have their own record-keeping requirements. A PDF and timestamp alone do not establish compliance; the entity must assess the specific retention, accessibility, integrity, security and third-party-control requirements that apply to the records. Confirm with your compliance team.
Comparison: Fax Options for Australian Businesses
Fax Solution Comparison (indicative, varies by provider and plan)
| Cloud fax service | Keep copper PSTN fax line | Dedicated fax ATA (T.38) | Fax machine via NBN modem phone port | FXS gateway (enterprise) | |
|---|---|---|---|---|---|
| Reliability | Excellent | Excellent | Good if configured correctly | Poor. Intermittent failures | Excellent |
| Monthly Cost | $15-$40 | $30-$60 | $5-$15 + ATA hardware | $0 (built into plan) | $100-$500 + hardware |
| Setup Effort | Low | None | Medium | None | High |
| Best For | Most businesses. Low-medium fax volume | Businesses where copper is still available and budget allows | Businesses with IT capability, where provider supports T.38 | Not recommended for business-critical fax | High-volume multi-line fax operations only |
How to Migrate to Cloud Fax Without Losing Your Number
If the fax service uses an active Australian local number, it can usually be ported, but the gaining cloud-fax provider does not have to accept it; 13, 1300 and 1800 numbers follow separate inbound-number portability procedures.
Steps:
- Sign up with a cloud fax service and confirm they accept ported Australian numbers. Most do, but confirm before starting the process.
- Initiate the port through the cloud fax service's portal. They will ask for your account details with your current provider and the number to be ported.
- ACMA says individual local-number ports are generally completed within 8 to 15 days, but cloud-fax providers may quote longer operational timeframes; eFax currently advises allowing up to 4 to 12 weeks. During porting, your existing fax machine still receives faxes on the old service until the port completes.
- Test the cloud fax service with a new test number first (before porting your main number) to confirm delivery and PDF quality meets your requirements.
- Once porting is complete, communicate the new workflow to staff and retire the physical fax machine.
For the full porting process, see our guide to number porting in Australia.
What Most Businesses Get Wrong
Assuming the problem is the VoIP provider's fault. Fax failure over VoIP is usually a protocol incompatibility issue, not a provider quality issue. Switching VoIP providers to fix fax reliability rarely works unless the new provider specifically offers T.38 support and the old one did not. Diagnose the issue correctly before switching providers.
Spending months trying to make a physical fax machine work on VoIP. The time spent configuring ATAs, testing codecs, adjusting jitter buffers, and troubleshooting intermittent failures is almost always worth more than the cost of a cloud fax service for the lifetime of the business. Cloud fax is the correct solution for most Australian businesses with low-medium fax volume. The physical fax machine is the wrong starting assumption.
Not checking whether fax is actually legally required. Some businesses maintain a fax machine because they have always had one, not because any regulatory requirement mandates it. Before investing in a fax continuation strategy, confirm whether any of your actual compliance obligations specifically require fax transmission rather than secure electronic document delivery.
Your Next Steps
If you are migrating from a copper PSTN line to VoIP and have a fax machine:
- Assess whether your fax volume justifies the complexity of a physical fax continuation strategy. Under 20 faxes per month is almost certainly better served by cloud fax.
- Check whether any of your senders or receivers will also move to cloud fax. If your major correspondent is also migrating, the fax problem may resolve itself.
- If you are keeping a fax machine, check whether your VoIP provider supports T.38 and whether your fax machine supports T.38 receive. Test it before committing to this approach.
- If you are moving to cloud fax, select a service, test with a new number, then port your existing fax number.
- Communicate the workflow change to staff early. Sending a fax by email takes 2 minutes to learn but requires advance notice.
For more on what to expect when migrating from copper to VoIP, see our full migration guide for Australian businesses.
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