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You should only have to pay out the contract if you wanted to go to another provider for the NBN connection.
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I am not a Telstra employee, so all opinions are my own, I have been around Telstra products a long time and have a reasonably strong general tech knowledge.
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As seen below your post your area of expertise is in technical details
That aside, if you are not a Telstra employee, what are you doing answering questions on billing and contracts?
To say "I have been around Telstra products a long time......." means . . . . what?
This is a Telstra-sponsored site. therefore I would rather see an actual Telstra employee answer questions when it comes to contracts and money.
I would strongly urge the original poster to take the answer (from some mystery person) with a grain of salt.
If he aint Telstra (and the poster does say that) then it aint official. Agreed?