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I redid the wiring in the house as far as I could and cleaned up the MDF myself (screwing it back on the wall was a nice start). Problem is probably in the pit, but as you said it's not their interest to fix it as I don't have a Telstra service at all.

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What type of wire did you replace it with?

Replaced the end points, not the wiring itself. The wiring is 2000s vintage and not anywhere near as terrible as the huge old Australian baseboard plugs it was fastened in to. Replacing the wiring in the walls was a bit too much given that I expected to be ditching it for fibre soon.

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