Postal Services Modernisation

Postal services have played an important role in the lives of Australian communities, individuals and businesses over the last 214 years. Australia Post’s extended workforce of more than 60,000 people and 4,300 Post Offices continue to deliver letters, parcels and essential services to communities and businesses throughout Australia.

The digitisation of the economy is changing how postal services are used:

• Businesses and government send more than 97 per cent of letters in Australia but are increasingly using digital communications channels, with the average household now receiving approximately one third of the number of letters each week compared to 2007–08 when letter volumes peaked.
• Post Offices provide a range of postal, financial, identity and retail services, however Australians visit Post Offices less frequently than they once did. Since 2013–14, retail transactions at Post Offices have declined 39 per cent.
• While traditional postal services continue to decline, Australians are increasingly relying on parcel delivery services. Almost 1 in 5 retail sales are now completed online, with Australia Post delivering over 500 million parcels in 2021–22.

The Australian Government is committed to helping Australia Post adapt to these changes so that it remains a cherished national institution, providing essential services to Australian communities, and stable employment for tens of thousands of Australians. This is particularly critical in regional, rural and remote areas of Australia, where Australia Post is a key provider of a wide range of services, and supports the economic and social wellbeing of many rural cities and towns.

The Government’s focus in the near term will be on working with Australia Post to improve productivity and revenue in delivery, while managing costs to support both sustainability objectives and benefits from modernisation. This may require changes to letter delivery standards and letter pricing arrangements.

The Government will work with Australia Post, licensees, businesses and communities to ensure retail network services meet the needs of modern Australia, consistent with existing regulatory requirements.

We are seeking submissions and comments from individuals, communities, charity organisations, businesses, Post Office licensees and agents, and the Australia Post workforce on options to modernise postal services. Understanding your expectations will assist the Government and Australia Post to meet the needs of contemporary Australia.

You can use the Discussion Paper below to help guide your submission.

Relevant documentation

• Postal Services Modernisation—Discussion Paper
• Media release—Consultation begins on delivering a modernised postal service

Consultation on postal services modernisation was open for submissions from 2 March to 27 April 2023.

The more than 1,000 short comments and submissions received from a diverse range of stakeholders indicated that Australians support the development of a well-designed package of reforms that continue to support the delivery of traditional postal services, supports growth services, and underpins the long-term financial sustainability of Australia Post.

Published submissions can be viewed below.

The findings from this public consultation process and further, targeted consultation through 2023 informed the development of a package of reforms to modernise Australia Post announced by the Government on 6 December 2023.

See: Media Release: Ensuring Australia Post can deliver more for Australians.

These reforms will support Australia Post's long-term financial sustainability, allowing it to invest in products and services for the future, and will boost the productivity of its workforce by freeing up its delivery and processing resources to support parcel delivery.

For up-to-date information about the reforms, see www.infrastructure.gov.au/auspost.