The paper attempts to develop an understanding of urban implications of telecommunication with a focus on telework in the Australian context. It begins with definitional discrepancy in the telework studies and defines telework as a flexible knowledge-work option in the new economy. It then reviews some of the urban implications of telework in the literature, and analyzes Metropolitan Plan for Sydney 2036 as the major document that shapes the future of Australia's first global city. This analysis identifies policy gaps regarding the lack of telecommunication focus at Sydney metropolitan level. The paper also reveals great opportunities involved in the current strategy to work with telecommunication and to deal with the major planning issues challenging the future of Australia's largest capital city. Considering the major investment on the telecommunication infrastructure namely NBN, this paper is perfectly timed and addresses policy issues that could highly impact the future of urban planning and policies in Australia.