Call forwarding is a phone feature that automatically redirects an incoming call from one phone to another, letting you take important calls on a different phone, or pass them through to someone else, without the caller knowing they’ve been rerouted.
Also known as call diversion or call divert, call forwarding is one of the simplest but most useful tools available on any Australian mobile or landline.
For an Australian business, call forwarding’s ability to capture every lead often means the difference between booking a job and losing one.
As a virtual receptionist & phone answering service in Sydney. Our clients keep their existing business number and divert it to our dedicated virtual receptionist team.
The caller experiences a warm, professional handover, allowing the business owner to focus on the work at hand.
After 25 years answering phones for Australian businesses across Sydney, Melbourne, Brisbane, and Perth, we’ve seen first-hand what a properly configured call-forwarding setup can do for revenue, customer experience, and stress levels.
In this SOI guide, we’ll cover exactly what call forwarding is and how it works, the different types (unconditional, conditional, and selective), how to set it up on Telstra, Optus, and Vodafone, the codes of iPhone and Android, and when call forwarding is the right answer versus when you’re better off with a virtual receptionist handling your calls.
By the end, you’ll know which option fits your business, and how to get it switched on in under two minutes.
How Does Call Forwarding Work?
When call forwarding is switched on for your business, your phone provider’s network intercepts any incoming call before it reaches your headset and reroutes it to a second number that you’ve nominated. This switch usually happens within a second or two, and without the caller knowing.
In practice, every call you receive is handled by your telecom provider’s network, not your phone.
When forwarding is active, the network does three things in sequence :
- An Incoming Call Hits Your Number : The call request reaches your provider’s switch, whether that’s Telstra, Optus, Vodafone, TPG, or whoever you’re with.
- The Network Checks Your Forwarding Rule : It looks at how you’ve configured forwarding; always forward, only when your line is busy, only when you don’t answer, or only when your phone is unreachable.
- The Call is Redirected : If the rule applies, the network routes the call to your forwarding destination rather than your original number. The caller hears only a normal ringtone throughout.
The handover happens at the network level, which is why call forwarding still works even when your phone is switched off, out of coverage, or has a flat battery; the call never actually needed to reach your device in the first place.
Turning it On Requires Just a Short Code.
To activate call forwarding in Australia, you typically dial a short MMI code on your handset (something like *21* followed by the destination number and #) or toggle a setting in your phone’s call settings menu.
The code tells the network which type of forwarding to enable and where to send your calls.
We’ve broken down the exact codes for Telstra, Optus and Vodafone further down the page.
How SOI Clients Use Call Forwarding in Practice
For most SOI clients, call forwarding is the first point of call when setting up a virtual receptionist service, and it takes only about 2 minutes.
You keep your existing business number and divert it to a dedicated SOI line, either on every call, or when your line is busy, or just after hours and weekends.
From that moment on, every customer who rings is greeted by a live, Australia-based receptionist answering in your business name, while also being trained in your industry, working from your script, and either transferring the call through, taking a message via SMS or email, or booking the appointment straight into your calendar.
The caller never knows the call has been diverted, as it sounds just like a regular phone call, so you can stay focused on the work in front of you.
What are the Types of Call Forwarding?
There are two main types of call forwarding :
- Manual Call Forwarding : This is when you manually set up call diversion in your phone’s settings or by dialling specific codes.
- Remote Call Forwarding : This setting allows you to set up and manage call forwarding from a remote location. This works by using an online portal or a phone application (app) provided by your telecommunication provider.
Benefits of Using Call Forwarding
Call forwarding gives any business a simple, low-cost way to make sure every customer call is answered, no matter where you are, how busy the line is, or what time it is.
Whether you’re a sole trader juggling client work or running a busy clinic with one front desk, here’s why it’s worth setting up as an Australian business.
- You Never Miss a Customer or Lead : A missed call is rarely “just” a missed call; it’s usually a customer ringing your competitor thirty seconds later. Call forwarding makes sure every incoming call has somewhere to land: another phone, another team member, or a live receptionist. For service businesses, that single change can be the difference between a booked job and a lost enquiry.
- You Can Work From Anywhere : Forwarding lets you separate your business number from a specific phone or location. You can be on the road, working from home, between client visits, or overseas, and the calls follow you without missing a beat. For mobile professionals like tradies, real estate agents, and consultants, that flexibility gives your business an invaluable advantage.
- Your Business Sounds Professional Every Time : There’s a real cost to letting calls go to voicemail. Why is that? Well, most callers won’t leave a voicemail, and the ones that do often hit an outdated greeting or an inbox the owner hasn’t checked in days. Diverting calls to someone who can actually answer your front-of-house consistently and professionally, which protects your reputation with new and existing customers alike.
- Get Your Focus and Weekends Back : Constant phone interruptions are the silent killer of productive work. With call forwarding configured properly, for example, divert every call after hours, or only when your line is busy, this way you step away from the phone without anxiety. The calls are handled; you’re free to focus, see clients, or actually take a Saturday off.
- It’s Cheaper Than Hiring a Receptionist : A full-time in-house receptionist in Australia costs upwards of $55,000 a year, plus super, training, leave cover, and a desk to put them at. For most small to mid-sized businesses, forwarding calls to a virtual receptionist service delivers the same outcome; every call answered professionally, and at a fraction of the cost, with none of the HR overhead.
- Setup Takes Minutes, Not Weeks : Unlike installing a new phone system or hiring staff, call forwarding is a software-level setting on your provider’s network. A short code on your handset, or a few taps in your provider’s app, and you’re live. There’s no hardware to buy, no installation appointment, and no learning curve.
This Is Not Just a Useful Feature; it’s a Real Business Advantage.
Most of these benefits depend on one assumption: that whoever, or whatever, the call gets forwarded to actually answers it well.
Forwarding to a personal mobile that’s already on silent, or to a voicemail box, captures the technical benefit but loses the business one.
That’s why SOI clients pair call forwarding with a live virtual receptionist team, so calls don’t just go somewhere; they go to someone who’s properly trained to answer them, in your business name, ready to book the appointment, take the message, or transfer the right ones through.
That’s where call forwarding stops being a phone feature and starts being a genuine business advantage.
How to Activate Call Forwarding
To activate call forwarding in Australia, dial **21* followed by the number you want to forward to, then press # on your handset, then press call.
The forwarding rule is set at the network level, so it works the same on Telstra, Optus, Vodafone, and TPG.
That single code activates unconditional forwarding; every incoming call is diverted, no matter what.
If you only want to forward in certain situations (busy line, no answer, or out of coverage), there’s a different code for each.
Use Your Phone’s Settings (iPhone)
If you’d rather not deal with codes, iPhone has a built-in toggle :
- Open Settings
- Tap Phone
- Tap Call Forwarding
- Switch It On
- Enter The Number You Want To Forward
That’s it; calls are diverted immediately, and the green icon at the top of your screen will confirm forwarding is active.
To turn it off, repeat the steps and switch the toggle off.
Use Your Phone’s Settings (Android)
The exact path varies slightly by manufacturer, but on most Android phones (Samsung, Google, Pixel, Oppo), you’ll find it here :
- Open the Phone App
- Tap the Three-Dot Menu (Top Right) and Choose Settings
- Tap Calls, then Call Forwarding
- Choose the Type of Forwarding (Always, When Busy, When Unanswered, When Unreachable)
- Enter the Destination Number and Tap Enable or Turn On
Make Sure Your Forwarded Calls Actually Get Answered
Activating call forwarding is the easy bit. The more important question is who is on the receiving end.
Diverting calls to a personal mobile that’s already on silent, or to a voicemail box your callers won’t use, technically counts as “call forwarding” but doesn’t solve the missed-call problem.
The majority of SOI clients forward their business number to a live virtual receptionist, so every call is answered by a real person in Australia, under their business name, usually within three rings, every time.
Setup takes about 24 hours, and the forwarding code itself takes under two minutes to dial.
What is the Best Time to Use Call Forwarding?
Generally speaking, call forwarding can be great during peak business hours or while travelling.
Here are some useful time frames.
- Business Hours : Useful for all customer inquiries and to make sure they are addressed in a timely fashion.
- Travel Periods : Staying connected while you’re moving without receiving roaming charges
- After Hours : To keep up and maintain customer service availability when you’ve finished your business hours for the day.
- Busy Work Periods : When you’re unable to pick up the phone due to a heavy workload.
You can find helpful resources on how to leave a professional voicemail message for tips and guidance at our blog.
Call Forwarding vs Voicemail vs Virtual Receptionist
For any business that takes calls from customers, there are really only three options when you can’t answer the phone yourself: let it go to voicemail, forward it to another mobile, or forward it to a live virtual receptionist.
Each has its place, but only one of them reliably converts a missed call into a customer.
We compare all three options in the table below :
| Voicemail | Call Forwarding | Virtual Receptionist | |
|---|---|---|---|
| Caller Reaches a Real Person | ❌ No | ⚠️ Only if you can answer | ✅ Always |
| Answers in Your Business Name | ❌ Generic recording | ❌ Personal greeting | ✅ Yes |
| Captures the Lead/Books the Job | ❌ Rarely (most callers hang up) | ⚠️ Only if you can talk | ✅ Yes |
| Free You from the Phone | ✅ Yes | ❌ No — you’re still answering | ✅ Yes |
| Available Outside Business Hours | ✅ Records 24/7 | ⚠️ Only when you’re available | ✅ Yes (or extended hours) |
| Handles Overflow When You’re Busy | ⚠️ Records but doesn’t help | ❌ Bottlenecked by you | ✅ Whole team available |
| Industry-Trained Handling | ❌ No | ⚠️ Yes (you’re the expert, but you’re busy) | ✅ Yes — trained operators |
| Setup Time | Already on | ~2 minutes | ~24 hours |
| Ongoing Cost | Free | Free | Monthly Plan |
| Best Suited To | Personal use only | Sole traders with low call volume | Service businesses where every call matters |
How to Decide Which One You Actually Need
A practical way to think about it: if you’re missing fewer than one call a week and they’re rarely customers, voicemail is fine.
If you’re a sole trader who can usually pick up but occasionally needs cover, call forwarding to a partner or second phone solves it cheaply.
But the moment your missed calls start including booked appointments, new client enquiries, or after-hours leads, which for most service businesses happens earlier than they realise, the maths flips.
A virtual receptionist service usually pays for itself with a single converted enquiry per month, and calls that would have gone to voicemail become customers instead.
That’s the actual choice most businesses are making when they research call forwarding. It’s not really whether to forward calls; it’s what’s on the receiving end when the call lands.
Choose SOI Virtual Reception
By leveraging tools like call forwarding, you’ll be able to keep up with all phone calls and handle them without worrying about missing important information.
A virtual receptionist service can take your business to the next level.
At SOI Virtual Services, our experienced team can assist you with call forwarding to ensure smooth, professional interactions with your customers.
Contact us today and let us handle your calls with the same care and dedication as you would.
If you want to learn more about how to choose the right virtual receptionist, click here.
