A little confused here. I am not worried about restoring my phone as it was as I am giving it to my nephew so I went straight to the part " Erase all content and setting" just by doing that does that unlock the phone? As that's what I have done.
And I don't think it unlocks straight away as the email got from Telstra advises
Your request to unlock your iPhone is almost complete. The request has been submitted to Apple and to complete this process you need to follow these instructions from Apple.
Please wait 72 hours before you do this to provide sufficient time for Apple to action our request.
You can check to see if your phone is unlocked by inserting a different carrier's SIM card.
If you're having any difficulty, ask the crowd at CrowdSupport®. Alternatively, you can find more help at Apple Support Communities.