Australia Post may soon see changes to its letter and parcel delivery services following a major overhaul to ensure its financial sustainability.

While there are plans to modernise the postal service – according to one expert, this could mark the ‘beginning of the end’ for mail delivery service as we know it.

The government launched a discussion paper aimed at modernising the postal service and, hopefully, making it more financially sustainable. This comes after reports that Australia Post hit a ‘crossroads’ earlier in February, expecting it to report a full-year loss for the first time since 2015 as letters continue to decline.

Earlier this year, the postal service reported a first-half loss of $189 million in its letters business. Parcel and services revenue dipped 1.6 per cent, recording a $3.8 billion loss.

At the time, Group Chief Executive Managing Director Paul Graham said that the postal service had been flagging concerns about its long-term viability, including the business it currently operates.

‘During the COVID-19 lockdowns, we benefited from a considerable boost to our parcels business, which has now abated and revealed the unsustainable nature of the status quo. We are at a crossroads, and the headwinds facing our business have never been stronger,’ he shared.

Australia Post hit a ‘crossroads’ after reporting millions of losses during the first half of the year. Credit: Australia Post

According to Mr Graham, letters were in an ‘unstoppable decline’ because of digital communications, and yet the cost of delivering them increased due to the high number of delivery points.

By the end of the decade, the average Aussie household will receive less than one letter a week.

Associate Professor Paul Alexander said there is only one way for the postal service to become profitable again: to focus on delivering parcels rather than letters.

However, parcel delivery services such as FedEx, UPS, and DHL have flooded the parcel delivery market for a while now, making it a competitive market to tap into.

Mr Alexander did note that Australia Post has an advantage.

‘Australia Post's greatest asset is that it will go where others choose not to because they can't make a profit,’ he claimed. Other services pick and choose the populated areas only for the sake of making a profit.

Meanwhile, Australia Post has to deliver everywhere because of its community service obligations, including rural and regional areas where the service is most dependent. This service obligation includes letters too.

Australia Post will go up against ‘heavy hitters’ in the parcel delivery market. Credit: ecees/Unsplash

According to reports, Australia Post is currently obliged to deliver letters to 98 per cent of Australian homes or ‘delivery points’ every weekday and 99.7 per cent at least twice a week – both rules were introduced in the 1980s and 1990s, respectively.

Communications Minister Michelle Rowland said that it’s important the postal service stays sustainable in these areas.

‘Australia Post not only serves as the post office, often it is the only banking service in town, the newsagent, or the retailer,’ she explained.

She added: ‘So the whole point of this consultation is to understand from Australians, and in particular from small businesses and people representing rural and regional Australia, what they need in a modern Australia Post.’

Discussions over how Australia Post will now operate are still ongoing, but Professor Alexander stated that there needs to be a ‘balancing act’ for things to work.

‘The question now is whether Australia Post can emerge from this crisis stronger, or if it is the beginning of the end,’ he said before adding that customers might be willing to accept a lower frequency of delivery if they get a better parcel service.

But he also stated that reducing the frequency of letter deliveries could incur extra costs, not only with the stamp prices but also in how letters are delivered.

He shared: ‘Deliveries of letters could be more like parcels where you pay per delivery, potentially, in the future, or you would go pick up your letters from the post offices.’ Professor Alexander added that changes must be made in these services, such as receiving a letter that someone probably doesn’t need every day will be reduced or stopped entirely.

‘That’s the discussion we’re having,’ he claimed.

Finance Minister Katy Gallagher weighed in on the discussion and said that the review would look at how Australia Post locations across the country would be able to operate successfully in the future.

‘The government is committed to ensuring that Australia Post continues to modernise to ensure it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,’ she explained.

Key Takeaways

• The government is undertaking a major overhaul of Australia Post to ensure it can remain financially sustainable.
• An expert has suggested that the postal service will have to focus on the delivery of parcels rather than letters in order to become profitable.
• Reducing the frequency of letter deliveries could incur extra costs and lead to changes in how they are delivered.
• Australia Post has reported a first-half loss of $189 million, set to report its first annual loss since 2015.

What do you think about this, members? Do you use Australia Post often? Let us know your thoughts in the comments below!

 

[carolyn fraser]

Australia Post may soon see changes to its letter and parcel delivery services following a major overhaul to ensure its financial sustainability.

While there are plans to modernise the postal service – according to one expert, this could mark the ‘beginning of the end’ for mail delivery service as we know it.

The government launched a discussion paper aimed at modernising the postal service and, hopefully, making it more financially sustainable. This comes after reports that Australia Post hit a ‘crossroads’ earlier in February, expecting it to report a full-year loss for the first time since 2015 as letters continue to decline.

Earlier this year, the postal service reported a first-half loss of $189 million in its letters business. Parcel and services revenue dipped 1.6 per cent, recording a $3.8 billion loss.

At the time, Group Chief Executive Managing Director Paul Graham said that the postal service had been flagging concerns about its long-term viability, including the business it currently operates.

‘During the COVID-19 lockdowns, we benefited from a considerable boost to our parcels business, which has now abated and revealed the unsustainable nature of the status quo. We are at a crossroads, and the headwinds facing our business have never been stronger,’ he shared.

View attachment 15233

Australia Post hit a ‘crossroads’ after reporting millions of losses during the first half of the year. Credit: Australia Post

According to Mr Graham, letters were in an ‘unstoppable decline’ because of digital communications, and yet the cost of delivering them increased due to the high number of delivery points.

By the end of the decade, the average Aussie household will receive less than one letter a week.

Associate Professor Paul Alexander said there is only one way for the postal service to become profitable again: to focus on delivering parcels rather than letters.

However, parcel delivery services such as FedEx, UPS, and DHL have flooded the parcel delivery market for a while now, making it a competitive market to tap into.

Mr Alexander did note that Australia Post has an advantage.

‘Australia Post's greatest asset is that it will go where others choose not to because they can't make a profit,’ he claimed. Other services pick and choose the populated areas only for the sake of making a profit.

Meanwhile, Australia Post has to deliver everywhere because of its community service obligations, including rural and regional areas where the service is most dependent. This service obligation includes letters too.

View attachment 15234

Australia Post will go up against ‘heavy hitters’ in the parcel delivery market. Credit: ecees/Unsplash

According to reports, Australia Post is currently obliged to deliver letters to 98 per cent of Australian homes or ‘delivery points’ every weekday and 99.7 per cent at least twice a week – both rules were introduced in the 1980s and 1990s, respectively.

Communications Minister Michelle Rowland said that it’s important the postal service stays sustainable in these areas.

‘Australia Post not only serves as the post office, often it is the only banking service in town, the newsagent, or the retailer,’ she explained.

She added: ‘So the whole point of this consultation is to understand from Australians, and in particular from small businesses and people representing rural and regional Australia, what they need in a modern Australia Post.’

Discussions over how Australia Post will now operate are still ongoing, but Professor Alexander stated that there needs to be a ‘balancing act’ for things to work.

‘The question now is whether Australia Post can emerge from this crisis stronger, or if it is the beginning of the end,’ he said before adding that customers might be willing to accept a lower frequency of delivery if they get a better parcel service.

But he also stated that reducing the frequency of letter deliveries could incur extra costs, not only with the stamp prices but also in how letters are delivered.

He shared: ‘Deliveries of letters could be more like parcels where you pay per delivery, potentially, in the future, or you would go pick up your letters from the post offices.’ Professor Alexander added that changes must be made in these services, such as receiving a letter that someone probably doesn’t need every day will be reduced or stopped entirely.

‘That’s the discussion we’re having,’ he claimed.

Finance Minister Katy Gallagher weighed in on the discussion and said that the review would look at how Australia Post locations across the country would be able to operate successfully in the future.

‘The government is committed to ensuring that Australia Post continues to modernise to ensure it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,’ she explained.

Key Takeaways

• The government is undertaking a major overhaul of Australia Post to ensure it can remain financially sustainable.
• An expert has suggested that the postal service will have to focus on the delivery of parcels rather than letters in order to become profitable.
• Reducing the frequency of letter deliveries could incur extra costs and lead to changes in how they are delivered.
• Australia Post has reported a first-half loss of $189 million, set to report its first annual loss since 2015.

What do you think about this, members? Do you use Australia Post often? Let us know your thoughts in the comments below!

 

[carolyn fraser]

we need to keep it a lot of older australians only know letters not iphones and computers please

 

[I'm Mal]

Australia Post may soon see changes to its letter and parcel delivery services following a major overhaul to ensure its financial sustainability.

While there are plans to modernise the postal service – according to one expert, this could mark the ‘beginning of the end’ for mail delivery service as we know it.

The government launched a discussion paper aimed at modernising the postal service and, hopefully, making it more financially sustainable. This comes after reports that Australia Post hit a ‘crossroads’ earlier in February, expecting it to report a full-year loss for the first time since 2015 as letters continue to decline.

Earlier this year, the postal service reported a first-half loss of $189 million in its letters business. Parcel and services revenue dipped 1.6 per cent, recording a $3.8 billion loss.

At the time, Group Chief Executive Managing Director Paul Graham said that the postal service had been flagging concerns about its long-term viability, including the business it currently operates.

‘During the COVID-19 lockdowns, we benefited from a considerable boost to our parcels business, which has now abated and revealed the unsustainable nature of the status quo. We are at a crossroads, and the headwinds facing our business have never been stronger,’ he shared.

View attachment 15233

Australia Post hit a ‘crossroads’ after reporting millions of losses during the first half of the year. Credit: Australia Post

According to Mr Graham, letters were in an ‘unstoppable decline’ because of digital communications, and yet the cost of delivering them increased due to the high number of delivery points.

By the end of the decade, the average Aussie household will receive less than one letter a week.

Associate Professor Paul Alexander said there is only one way for the postal service to become profitable again: to focus on delivering parcels rather than letters.

However, parcel delivery services such as FedEx, UPS, and DHL have flooded the parcel delivery market for a while now, making it a competitive market to tap into.

Mr Alexander did note that Australia Post has an advantage.

‘Australia Post's greatest asset is that it will go where others choose not to because they can't make a profit,’ he claimed. Other services pick and choose the populated areas only for the sake of making a profit.

Meanwhile, Australia Post has to deliver everywhere because of its community service obligations, including rural and regional areas where the service is most dependent. This service obligation includes letters too.

View attachment 15234

Australia Post will go up against ‘heavy hitters’ in the parcel delivery market. Credit: ecees/Unsplash

According to reports, Australia Post is currently obliged to deliver letters to 98 per cent of Australian homes or ‘delivery points’ every weekday and 99.7 per cent at least twice a week – both rules were introduced in the 1980s and 1990s, respectively.

Communications Minister Michelle Rowland said that it’s important the postal service stays sustainable in these areas.

‘Australia Post not only serves as the post office, often it is the only banking service in town, the newsagent, or the retailer,’ she explained.

She added: ‘So the whole point of this consultation is to understand from Australians, and in particular from small businesses and people representing rural and regional Australia, what they need in a modern Australia Post.’

Discussions over how Australia Post will now operate are still ongoing, but Professor Alexander stated that there needs to be a ‘balancing act’ for things to work.

‘The question now is whether Australia Post can emerge from this crisis stronger, or if it is the beginning of the end,’ he said before adding that customers might be willing to accept a lower frequency of delivery if they get a better parcel service.

But he also stated that reducing the frequency of letter deliveries could incur extra costs, not only with the stamp prices but also in how letters are delivered.

He shared: ‘Deliveries of letters could be more like parcels where you pay per delivery, potentially, in the future, or you would go pick up your letters from the post offices.’ Professor Alexander added that changes must be made in these services, such as receiving a letter that someone probably doesn’t need every day will be reduced or stopped entirely.

‘That’s the discussion we’re having,’ he claimed.

Finance Minister Katy Gallagher weighed in on the discussion and said that the review would look at how Australia Post locations across the country would be able to operate successfully in the future.

‘The government is committed to ensuring that Australia Post continues to modernise to ensure it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,’ she explained.

Key Takeaways

• The government is undertaking a major overhaul of Australia Post to ensure it can remain financially sustainable.
• An expert has suggested that the postal service will have to focus on the delivery of parcels rather than letters in order to become profitable.
• Reducing the frequency of letter deliveries could incur extra costs and lead to changes in how they are delivered.
• Australia Post has reported a first-half loss of $189 million, set to report its first annual loss since 2015.

What do you think about this, members? Do you use Australia Post often? Let us know your thoughts in the comments below!

Just another thing the labour incompetents are doing to ruin our nation

 

[Bullwinkle]

I like your sentiments I’m Mal!!

 

[Aussie D]

Another essential service turned into a business needing to put profit before its people and purpose. We are now in a position where fixed/low income earners are drowning in all the COL rises and may very soon not be able to afford internet. No internet = no email, no electronic communication. What do they do when that happens.
Government has certain responsibilities that they have shirked or partly privatized (skirked), that now people have to live without, like basic utilities including power/gas/water, health, housing when necessary, telecommunications, public transport etc. this is why people can't afford heating/cooling, medication etc already.
GOVT TAKE THESE ESSENTIAL SERVICES BACK AND LOOK AFTER THE VERY CITIZENS THAT HAVE VOTED AND/OR PAID YOUR SALARY, BENEFITS AND SUPERANUATION FOR YEARS !

 

[Cavador2001]

The only way for Auspost to remain viable is to stop giving top management the bonuses they have been getting and stop giving out Cartier Watches to management.
When Auspost does this the profits will return and they will remain viable.

 

[Gsr]

Well, I still send letters regularly to a couple of older aunties and to my 5 grandchildren. 4 grandchildren are teenagers and a 7 year old. They all love getting a letter or a card in the post. We FaceTime and msg them often but this doesn’t diminish their excitement at receiving mail. We also receive all our bills via mail, we haven’t opted to get them via email, I think a lot of older people would still be getting bills by post. Recently I did an online order and was told delivery would take up to 2 weeks because of the huge amount of parcels Australia post handles. So I’m sure there is no real reason to change anything, just the government trying to find excuses to privatise or downgrade the postal services.

 

[Ian Crane-Luff]

Australia Post has purposely manoeuvred this they separated letter post from parcel post to make letter post fail, just put the two back together as it's all one and accept that profit will drop slightly and their bonus will reduce, the public must insist that mail is continued and insist AP stop manipulating the system to maximise profit, they are a postal SERVICE.

 

[Suzanne rose]

I actually don't see anything wrong with less letter deliveries.
During the pandemic we only saw mail deliveries every 2nd day and I'm in Sydney.
Parcel deliveries are high , maybe get the postman to help deliver some of these.

With modern technology email for many are the way to go.
You receive it instantly as well as attachments.

It stops mail theft which is the highest way they steal your identity

My specialist had to send me a letter, his secretary mailed the hard copy off plus emailed me a copy. I received the hard copy 1 week later, sent from Sydney to Sydney.

I think by the time they stop all letter deliveries then everyone will know how to open an email.

 

[Gsr]

The only way for Auspost to remain viable is to stop giving top management the bonuses they have been getting and stop giving out Cartier Watches to management.
When Auspost does this the profits will return and they will remain viable.

Totally agree. It is the same with most organisations, give big bonuses to the top management then whinge about not making a huge profit. Well why does anyone need these bonuses, they get paid huge salaries already. Time for a reality check for most big business and top management should get their snouts out of the profit trough.

 

[MariaG]

Australia Post may soon see changes to its letter and parcel delivery services following a major overhaul to ensure its financial sustainability.

While there are plans to modernise the postal service – according to one expert, this could mark the ‘beginning of the end’ for mail delivery service as we know it.

The government launched a discussion paper aimed at modernising the postal service and, hopefully, making it more financially sustainable. This comes after reports that Australia Post hit a ‘crossroads’ earlier in February, expecting it to report a full-year loss for the first time since 2015 as letters continue to decline.

Earlier this year, the postal service reported a first-half loss of $189 million in its letters business. Parcel and services revenue dipped 1.6 per cent, recording a $3.8 billion loss.

At the time, Group Chief Executive Managing Director Paul Graham said that the postal service had been flagging concerns about its long-term viability, including the business it currently operates.

‘During the COVID-19 lockdowns, we benefited from a considerable boost to our parcels business, which has now abated and revealed the unsustainable nature of the status quo. We are at a crossroads, and the headwinds facing our business have never been stronger,’ he shared.

View attachment 15233

Australia Post hit a ‘crossroads’ after reporting millions of losses during the first half of the year. Credit: Australia Post

According to Mr Graham, letters were in an ‘unstoppable decline’ because of digital communications, and yet the cost of delivering them increased due to the high number of delivery points.

By the end of the decade, the average Aussie household will receive less than one letter a week.

Associate Professor Paul Alexander said there is only one way for the postal service to become profitable again: to focus on delivering parcels rather than letters.

However, parcel delivery services such as FedEx, UPS, and DHL have flooded the parcel delivery market for a while now, making it a competitive market to tap into.

Mr Alexander did note that Australia Post has an advantage.

‘Australia Post's greatest asset is that it will go where others choose not to because they can't make a profit,’ he claimed. Other services pick and choose the populated areas only for the sake of making a profit.

Meanwhile, Australia Post has to deliver everywhere because of its community service obligations, including rural and regional areas where the service is most dependent. This service obligation includes letters too.

View attachment 15234

Australia Post will go up against ‘heavy hitters’ in the parcel delivery market. Credit: ecees/Unsplash

According to reports, Australia Post is currently obliged to deliver letters to 98 per cent of Australian homes or ‘delivery points’ every weekday and 99.7 per cent at least twice a week – both rules were introduced in the 1980s and 1990s, respectively.

Communications Minister Michelle Rowland said that it’s important the postal service stays sustainable in these areas.

‘Australia Post not only serves as the post office, often it is the only banking service in town, the newsagent, or the retailer,’ she explained.

She added: ‘So the whole point of this consultation is to understand from Australians, and in particular from small businesses and people representing rural and regional Australia, what they need in a modern Australia Post.’

Discussions over how Australia Post will now operate are still ongoing, but Professor Alexander stated that there needs to be a ‘balancing act’ for things to work.

‘The question now is whether Australia Post can emerge from this crisis stronger, or if it is the beginning of the end,’ he said before adding that customers might be willing to accept a lower frequency of delivery if they get a better parcel service.

But he also stated that reducing the frequency of letter deliveries could incur extra costs, not only with the stamp prices but also in how letters are delivered.

He shared: ‘Deliveries of letters could be more like parcels where you pay per delivery, potentially, in the future, or you would go pick up your letters from the post offices.’ Professor Alexander added that changes must be made in these services, such as receiving a letter that someone probably doesn’t need every day will be reduced or stopped entirely.

‘That’s the discussion we’re having,’ he claimed.

Finance Minister Katy Gallagher weighed in on the discussion and said that the review would look at how Australia Post locations across the country would be able to operate successfully in the future.

‘The government is committed to ensuring that Australia Post continues to modernise to ensure it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,’ she explained.

Key Takeaways

• The government is undertaking a major overhaul of Australia Post to ensure it can remain financially sustainable.
• An expert has suggested that the postal service will have to focus on the delivery of parcels rather than letters in order to become profitable.
• Reducing the frequency of letter deliveries could incur extra costs and lead to changes in how they are delivered.
• Australia Post has reported a first-half loss of $189 million, set to report its first annual loss since 2015.

What do you think about this, members? Do you use Australia Post often? Let us know your thoughts in the comments below!

I still believe in snail mail.
Not everybody wants to receive their bibs and bobs electronically. Things are bad enough already with all the scams and information criminals. Yeah, good idea to put everything in your life online so your identity can be stolen, copied, adjusted and de-humanised.
It's interesting that the government is looking at this as a good idea. We still receive letters in our mail box every week, many of which include correspondence from the hospital, oncologist, and other humans who don't want to communicate digitally.
It's a sad state of affairs when I read this and note that there is no real mention of "gee ... so many people will lose their jobs if we downscale every further ... oh... so sad, too bad"
I was not happy when so much of this government service was reduced to a simple cash grab. I have to stop...I'm getting cranky.

 

[Colette 3799]

I actually don't see anything wrong with less letter deliveries.
During the pandemic we only saw mail deliveries every 2nd day and I'm in Sydney.
Parcel deliveries are high , maybe get the postman to help deliver some of these.

With modern technology email for many are the way to go.
You receive it instantly as well as attachments.

It stops mail theft which is the highest way they steal your identity

My specialist had to send me a letter, his secretary mailed the hard copy off plus emailed me a copy. I received the hard copy 1 week later, sent from Sydney to Sydney.

I think by the time they stop all letter deliveries then everyone will know how to open an email.

Our postman delivers all our none bulky parcel. Only heavier parcels get delivered by the post van. it works well

 

[Ian Crane-Luff]

The postmen are required to deliver small packages, however, many refuse and just leave a card and get away with it because the unions run Australia Post.

 

[Big M]

Just something another thing the labour incompetents are doing to ruin our nation

Labour does not run Australia Post!!!!!!!! What a stupid comment!

 

[MarieL]

Australia Post may soon see changes to its letter and parcel delivery services following a major overhaul to ensure its financial sustainability.

While there are plans to modernise the postal service – according to one expert, this could mark the ‘beginning of the end’ for mail delivery service as we know it.

The government launched a discussion paper aimed at modernising the postal service and, hopefully, making it more financially sustainable. This comes after reports that Australia Post hit a ‘crossroads’ earlier in February, expecting it to report a full-year loss for the first time since 2015 as letters continue to decline.

Earlier this year, the postal service reported a first-half loss of $189 million in its letters business. Parcel and services revenue dipped 1.6 per cent, recording a $3.8 billion loss.

At the time, Group Chief Executive Managing Director Paul Graham said that the postal service had been flagging concerns about its long-term viability, including the business it currently operates.

‘During the COVID-19 lockdowns, we benefited from a considerable boost to our parcels business, which has now abated and revealed the unsustainable nature of the status quo. We are at a crossroads, and the headwinds facing our business have never been stronger,’ he shared.

View attachment 15233

Australia Post hit a ‘crossroads’ after reporting millions of losses during the first half of the year. Credit: Australia Post

According to Mr Graham, letters were in an ‘unstoppable decline’ because of digital communications, and yet the cost of delivering them increased due to the high number of delivery points.

By the end of the decade, the average Aussie household will receive less than one letter a week.

Associate Professor Paul Alexander said there is only one way for the postal service to become profitable again: to focus on delivering parcels rather than letters.

However, parcel delivery services such as FedEx, UPS, and DHL have flooded the parcel delivery market for a while now, making it a competitive market to tap into.

Mr Alexander did note that Australia Post has an advantage.

‘Australia Post's greatest asset is that it will go where others choose not to because they can't make a profit,’ he claimed. Other services pick and choose the populated areas only for the sake of making a profit.

Meanwhile, Australia Post has to deliver everywhere because of its community service obligations, including rural and regional areas where the service is most dependent. This service obligation includes letters too.

View attachment 15234

Australia Post will go up against ‘heavy hitters’ in the parcel delivery market. Credit: ecees/Unsplash

According to reports, Australia Post is currently obliged to deliver letters to 98 per cent of Australian homes or ‘delivery points’ every weekday and 99.7 per cent at least twice a week – both rules were introduced in the 1980s and 1990s, respectively.

Communications Minister Michelle Rowland said that it’s important the postal service stays sustainable in these areas.

‘Australia Post not only serves as the post office, often it is the only banking service in town, the newsagent, or the retailer,’ she explained.

She added: ‘So the whole point of this consultation is to understand from Australians, and in particular from small businesses and people representing rural and regional Australia, what they need in a modern Australia Post.’

Discussions over how Australia Post will now operate are still ongoing, but Professor Alexander stated that there needs to be a ‘balancing act’ for things to work.

‘The question now is whether Australia Post can emerge from this crisis stronger, or if it is the beginning of the end,’ he said before adding that customers might be willing to accept a lower frequency of delivery if they get a better parcel service.

But he also stated that reducing the frequency of letter deliveries could incur extra costs, not only with the stamp prices but also in how letters are delivered.

He shared: ‘Deliveries of letters could be more like parcels where you pay per delivery, potentially, in the future, or you would go pick up your letters from the post offices.’ Professor Alexander added that changes must be made in these services, such as receiving a letter that someone probably doesn’t need every day will be reduced or stopped entirely.

‘That’s the discussion we’re having,’ he claimed.

Finance Minister Katy Gallagher weighed in on the discussion and said that the review would look at how Australia Post locations across the country would be able to operate successfully in the future.

‘The government is committed to ensuring that Australia Post continues to modernise to ensure it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,’ she explained.

Key Takeaways

• The government is undertaking a major overhaul of Australia Post to ensure it can remain financially sustainable.
• An expert has suggested that the postal service will have to focus on the delivery of parcels rather than letters in order to become profitable.
• Reducing the frequency of letter deliveries could incur extra costs and lead to changes in how they are delivered.
• Australia Post has reported a first-half loss of $189 million, set to report its first annual loss since 2015.

What do you think about this, members? Do you use Australia Post often? Let us know your thoughts in the comments below!

That would be a Shane. I love getting a handwritten card or letter..

 

[MarieL]

Australia Post may soon see changes to its letter and parcel delivery services following a major overhaul to ensure its financial sustainability.

While there are plans to modernise the postal service – according to one expert, this could mark the ‘beginning of the end’ for mail delivery service as we know it.

The government launched a discussion paper aimed at modernising the postal service and, hopefully, making it more financially sustainable. This comes after reports that Australia Post hit a ‘crossroads’ earlier in February, expecting it to report a full-year loss for the first time since 2015 as letters continue to decline.

Earlier this year, the postal service reported a first-half loss of $189 million in its letters business. Parcel and services revenue dipped 1.6 per cent, recording a $3.8 billion loss.

At the time, Group Chief Executive Managing Director Paul Graham said that the postal service had been flagging concerns about its long-term viability, including the business it currently operates.

‘During the COVID-19 lockdowns, we benefited from a considerable boost to our parcels business, which has now abated and revealed the unsustainable nature of the status quo. We are at a crossroads, and the headwinds facing our business have never been stronger,’ he shared.

View attachment 15233

Australia Post hit a ‘crossroads’ after reporting millions of losses during the first half of the year. Credit: Australia Post

According to Mr Graham, letters were in an ‘unstoppable decline’ because of digital communications, and yet the cost of delivering them increased due to the high number of delivery points.

By the end of the decade, the average Aussie household will receive less than one letter a week.

Associate Professor Paul Alexander said there is only one way for the postal service to become profitable again: to focus on delivering parcels rather than letters.

However, parcel delivery services such as FedEx, UPS, and DHL have flooded the parcel delivery market for a while now, making it a competitive market to tap into.

Mr Alexander did note that Australia Post has an advantage.

‘Australia Post's greatest asset is that it will go where others choose not to because they can't make a profit,’ he claimed. Other services pick and choose the populated areas only for the sake of making a profit.

Meanwhile, Australia Post has to deliver everywhere because of its community service obligations, including rural and regional areas where the service is most dependent. This service obligation includes letters too.

View attachment 15234

Australia Post will go up against ‘heavy hitters’ in the parcel delivery market. Credit: ecees/Unsplash

According to reports, Australia Post is currently obliged to deliver letters to 98 per cent of Australian homes or ‘delivery points’ every weekday and 99.7 per cent at least twice a week – both rules were introduced in the 1980s and 1990s, respectively.

Communications Minister Michelle Rowland said that it’s important the postal service stays sustainable in these areas.

‘Australia Post not only serves as the post office, often it is the only banking service in town, the newsagent, or the retailer,’ she explained.

She added: ‘So the whole point of this consultation is to understand from Australians, and in particular from small businesses and people representing rural and regional Australia, what they need in a modern Australia Post.’

Discussions over how Australia Post will now operate are still ongoing, but Professor Alexander stated that there needs to be a ‘balancing act’ for things to work.

‘The question now is whether Australia Post can emerge from this crisis stronger, or if it is the beginning of the end,’ he said before adding that customers might be willing to accept a lower frequency of delivery if they get a better parcel service.

But he also stated that reducing the frequency of letter deliveries could incur extra costs, not only with the stamp prices but also in how letters are delivered.

He shared: ‘Deliveries of letters could be more like parcels where you pay per delivery, potentially, in the future, or you would go pick up your letters from the post offices.’ Professor Alexander added that changes must be made in these services, such as receiving a letter that someone probably doesn’t need every day will be reduced or stopped entirely.

‘That’s the discussion we’re having,’ he claimed.

Finance Minister Katy Gallagher weighed in on the discussion and said that the review would look at how Australia Post locations across the country would be able to operate successfully in the future.

‘The government is committed to ensuring that Australia Post continues to modernise to ensure it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,’ she explained.

Key Takeaways

• The government is undertaking a major overhaul of Australia Post to ensure it can remain financially sustainable.
• An expert has suggested that the postal service will have to focus on the delivery of parcels rather than letters in order to become profitable.
• Reducing the frequency of letter deliveries could incur extra costs and lead to changes in how they are delivered.
• Australia Post has reported a first-half loss of $189 million, set to report its first annual loss since 2015.

What do you think about this, members? Do you use Australia Post often? Let us know your thoughts in the comments below!

That would be a shame I love receiving cards and hand written notes + letters.

 

[bsashootingstar]

Australia Post may soon see changes to its letter and parcel delivery services following a major overhaul to ensure its financial sustainability.

While there are plans to modernise the postal service – according to one expert, this could mark the ‘beginning of the end’ for mail delivery service as we know it.

The government launched a discussion paper aimed at modernising the postal service and, hopefully, making it more financially sustainable. This comes after reports that Australia Post hit a ‘crossroads’ earlier in February, expecting it to report a full-year loss for the first time since 2015 as letters continue to decline.

Earlier this year, the postal service reported a first-half loss of $189 million in its letters business. Parcel and services revenue dipped 1.6 per cent, recording a $3.8 billion loss.

At the time, Group Chief Executive Managing Director Paul Graham said that the postal service had been flagging concerns about its long-term viability, including the business it currently operates.

‘During the COVID-19 lockdowns, we benefited from a considerable boost to our parcels business, which has now abated and revealed the unsustainable nature of the status quo. We are at a crossroads, and the headwinds facing our business have never been stronger,’ he shared.

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Australia Post hit a ‘crossroads’ after reporting millions of losses during the first half of the year. Credit: Australia Post

According to Mr Graham, letters were in an ‘unstoppable decline’ because of digital communications, and yet the cost of delivering them increased due to the high number of delivery points.

By the end of the decade, the average Aussie household will receive less than one letter a week.

Associate Professor Paul Alexander said there is only one way for the postal service to become profitable again: to focus on delivering parcels rather than letters.

However, parcel delivery services such as FedEx, UPS, and DHL have flooded the parcel delivery market for a while now, making it a competitive market to tap into.

Mr Alexander did note that Australia Post has an advantage.

‘Australia Post's greatest asset is that it will go where others choose not to because they can't make a profit,’ he claimed. Other services pick and choose the populated areas only for the sake of making a profit.

Meanwhile, Australia Post has to deliver everywhere because of its community service obligations, including rural and regional areas where the service is most dependent. This service obligation includes letters too.

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Australia Post will go up against ‘heavy hitters’ in the parcel delivery market. Credit: ecees/Unsplash

According to reports, Australia Post is currently obliged to deliver letters to 98 per cent of Australian homes or ‘delivery points’ every weekday and 99.7 per cent at least twice a week – both rules were introduced in the 1980s and 1990s, respectively.

Communications Minister Michelle Rowland said that it’s important the postal service stays sustainable in these areas.

‘Australia Post not only serves as the post office, often it is the only banking service in town, the newsagent, or the retailer,’ she explained.

She added: ‘So the whole point of this consultation is to understand from Australians, and in particular from small businesses and people representing rural and regional Australia, what they need in a modern Australia Post.’

Discussions over how Australia Post will now operate are still ongoing, but Professor Alexander stated that there needs to be a ‘balancing act’ for things to work.

‘The question now is whether Australia Post can emerge from this crisis stronger, or if it is the beginning of the end,’ he said before adding that customers might be willing to accept a lower frequency of delivery if they get a better parcel service.

But he also stated that reducing the frequency of letter deliveries could incur extra costs, not only with the stamp prices but also in how letters are delivered.

He shared: ‘Deliveries of letters could be more like parcels where you pay per delivery, potentially, in the future, or you would go pick up your letters from the post offices.’ Professor Alexander added that changes must be made in these services, such as receiving a letter that someone probably doesn’t need every day will be reduced or stopped entirely.

‘That’s the discussion we’re having,’ he claimed.

Finance Minister Katy Gallagher weighed in on the discussion and said that the review would look at how Australia Post locations across the country would be able to operate successfully in the future.

‘The government is committed to ensuring that Australia Post continues to modernise to ensure it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,’ she explained.

Key Takeaways

• The government is undertaking a major overhaul of Australia Post to ensure it can remain financially sustainable.
• An expert has suggested that the postal service will have to focus on the delivery of parcels rather than letters in order to become profitable.
• Reducing the frequency of letter deliveries could incur extra costs and lead to changes in how they are delivered.
• Australia Post has reported a first-half loss of $189 million, set to report its first annual loss since 2015.

What do you think about this, members? Do you use Australia Post often? Let us know your thoughts in the comments below!

I'm astounded at the parcel delivery loss.... $3.8B! Is that correct?
However one thing I've never understood, together with a Postmaster I know, is how come I can buy products from China with free postage? In many cases the cost of the item is less that the postage I would have to pay for postage to the next suburb. Yet these products are delivered by Australia Post.....
Am I suspicious or do I smell rat.....

 

[Penny4]

My elderly mother still prefers receiving paper bills in the mail, even though she uses an email account. Some businesses charge extra for posting paper bills. I know Telstra charges her an extra $2 per bill. Local Councils do as well for rates & water charges.

 

[gollywog]

we need to keep it a lot of older australians only know letters not iphones and computers please

Here, here!!!