Australia Post set to cut costs with shocking change
Are you one of the many who still rely on postal deliveries for paying bills, receiving parcels and staying in touch with loved ones?
Well, you may soon see fewer trips to your letterbox each day as Australia Post looks to phase out daily mail deliveries nationwide.
This decision is part of a broader plan to cut costs and maintain the financial viability of the government-run postal service.
The new delivery model, which has already been trialled in six locations, prioritises parcel delivery over letters.
Posties will continue to distribute packages five days a week, but letter deliveries will be spaced out, occurring every second or third day.
The shift in focus from letters to parcels reflects the changing needs of Australians. With the rise of digital communication, the average household now receives just 2.2 addressed letters a week, a significant drop from the 8.5 letters received in 2008.
On the other hand, the demand for parcel delivery services has surged, driven by the boom in online shopping.
The government is expected to approve the changes to the service as early as this week.
Communications Minister Michelle Rowland emphasised the need for a high-quality and sustainable letters and parcels service.
‘While traditional postal services usage declines, Australians are increasingly relying on Australia Post's nationwide parcel delivery services, which operate in a highly competitive market,’ she stated.
She also highlighted the crucial role of local post offices, particularly in rural and regional Australia, where they often serve as general stores and banking service providers.
The decision to phase out daily letter delivery comes after a discussion paper on Australia Post warned that 'existing community service obligations are no longer financially sustainable'.
One of the top recommendations made by Chief Executive Paul Graham to save money was changing letter deliveries from daily to every second or third day. Graham also proposed closing some full-service city post offices.
Without these changes, Graham warned, Australia Post could soon require a multibillion-dollar bailout.
This comes after the postal service reported a first-half loss of $189 million, with Australia Post set to report its first annual loss since 2015.
What are your thoughts on these changes, members? How will they impact you or your community? Share your thoughts in the comments below.
Well, you may soon see fewer trips to your letterbox each day as Australia Post looks to phase out daily mail deliveries nationwide.
This decision is part of a broader plan to cut costs and maintain the financial viability of the government-run postal service.
The new delivery model, which has already been trialled in six locations, prioritises parcel delivery over letters.
Posties will continue to distribute packages five days a week, but letter deliveries will be spaced out, occurring every second or third day.
The shift in focus from letters to parcels reflects the changing needs of Australians. With the rise of digital communication, the average household now receives just 2.2 addressed letters a week, a significant drop from the 8.5 letters received in 2008.
On the other hand, the demand for parcel delivery services has surged, driven by the boom in online shopping.
The government is expected to approve the changes to the service as early as this week.
Communications Minister Michelle Rowland emphasised the need for a high-quality and sustainable letters and parcels service.
‘While traditional postal services usage declines, Australians are increasingly relying on Australia Post's nationwide parcel delivery services, which operate in a highly competitive market,’ she stated.
She also highlighted the crucial role of local post offices, particularly in rural and regional Australia, where they often serve as general stores and banking service providers.
The decision to phase out daily letter delivery comes after a discussion paper on Australia Post warned that 'existing community service obligations are no longer financially sustainable'.
One of the top recommendations made by Chief Executive Paul Graham to save money was changing letter deliveries from daily to every second or third day. Graham also proposed closing some full-service city post offices.
Without these changes, Graham warned, Australia Post could soon require a multibillion-dollar bailout.
This comes after the postal service reported a first-half loss of $189 million, with Australia Post set to report its first annual loss since 2015.
Key Takeaways
- Australia Post is phasing out daily letter deliveries and planning to expand this new model nationwide.
- The move is designed to prioritise parcel delivery and increase the organisation's financial sustainability.
- Letter deliveries have significantly decreased in Australia, from an average of 8.5 addressed letters a week per household in 2008 to just 2.2 recently.
- The proposed changes are expected to be approved by the government this week.
What are your thoughts on these changes, members? How will they impact you or your community? Share your thoughts in the comments below.