Consumers should soon be able to compare actual broadband speeds with providers' claims after the competition regulator said it will test the national broadband network's performance.
The Australian Competition and Consumer Commission said on Friday it has been given extra federal funding for a program to remotely test about 4,000 households and determine typical speeds on fixed-line NBN services at different times of the day.
The ACCC will begin publishing the data later this year.
"This information will assist consumers in comparing and shopping around, and checking that they receive what they are paying for," ACCC chairman Rod Sims said in a statement on Friday.
"The program will also allow the ACCC to determine if issues are being caused by the performance of the NBN, or by internet service providers not buying sufficient capacity."
About two million homes and businesses are currently connected to the government-funded NBN.
Telecom giant Telstra is the nation's biggest fixed-broadband provider, followed by TPG Telecom and Optus.
Mobile operators Vodafone and Amaysim plan to offer a fixed broadband service over NBN later this year.
Mr Sims, who last month promised that telcos would come under particular scrutiny this year, said consumers need access to accurate information to help them choose plans.
"This improved transparency will help these consumers exercise choice as next generation services are rolled out, including on the NBN," he said.
The ACCC will receive about $7 million over four years for the program after a successful three-month pilot in 2015.
The program will be similar to those in the UK, US, Singapore and Canada, which the ACCC said have led to improved transparency of information and increased performance-based competition for broadband services.
There will be a tender process for an independent provider to run the program.
Consumers invited to participate in the scheme will have a small device installed on their home internet connections to provide real-time performance data.
