Consumers are likely to face rising internet costs to meet a shortfall in the cost of implementing the government's metadata retention scheme. Reports indicate the government will contribute $131 million to the cost of the scheme, significantly less than the total estimated price tag.

Any remaining costs of implementing the new laws - which require telcos and ISPs to keep data about their customers' phone and internet use for two years - will be covered by the industry, which could raise the price of its services to compensate.

Communications Minister Malcolm Turnbull during Data Retention Bill discussions at Parliament House earlier this year. Credit:Andrew Meares

John Stanton, chief executive of the Telecommunications industry body Communications Alliance, had some concerns about the figure but said it was not insignificant.

"If $131 million is the number, then that's obviously more than a token contribution to the setup costs [of implementing the data retention rules]," Mr Stanton said.