Major shake-up coming! What Australia Post’s latest move means for you

The financial stability of essential services is something many Australians take for granted—until challenges arise that threaten their future.

One of the nation’s most recognisable institutions is now facing mounting financial pressure, raising questions about its long-term viability and the potential need for government intervention.

Here’s what’s unfolding behind the scenes.


Australia Post faced significant financial difficulties, with treasury budget documents revealing an $88.5 million pre-tax loss in the 2023–24 financial year.

It marked the second consecutive annual loss since 2014–15, highlighting ongoing financial instability.

Treasury stated in Budget papers that the decline reflected ‘the way in which digitisation of the global and national economy is changing how many people and businesses use postal and related services.’


image1.png
Australia Post reports massive financial loss. Image source: Shuttertock/Darla Nipot


In December 2024, the government announced a package of reforms to improve Australia Post’s productivity, prioritise parcel delivery, and strengthen financial sustainability.

Despite these efforts, authorities warned they might need to provide financial assistance to the postal service in the future.

Paul Graham, Australia Post’s chief executive, previously revealed that households would eventually receive letters only every third day.

‘As we see mail decline, we believe it's inevitable that we'll need to move to every third day and beyond,’ he said.

‘The time frame for that is unknown because it will depend on how quickly it declines but that will certainly be a topic we will be taking up with the government post the election.’


The Australian Competition and Consumer Commission was assessing a proposal for a further 20-cent increase in letter delivery fees, though mail services were not expected to become profitable again.

Meanwhile, parcel deliveries had surged since the COVID-19 pandemic, driven by consumers seeking online bargains amid rising living costs.

Despite this growth, Australia Post faced increasing competition from global logistics companies, gig economy operators, and low-cost alternatives.

‘That's, you know, the thing that certainly keeps us awake at night,’ Graham said.

‘Competition is intensifying and our traditional revenue streams are shrinking.’


In a previous story, Australia Post signalled that price increases could be on the horizon for several services.

As the company grapples with financial losses and shifting consumer habits, higher costs may be unavoidable.

Read more to see what changes could be coming.

Key Takeaways
  • Australia Post reported an $88.5 million pre-tax loss for 2023–24, marking its second consecutive annual loss.
  • The government introduced reforms in December 2024 to boost productivity and focus on parcel delivery, but financial aid may still be needed.
  • CEO Paul Graham said letter deliveries would eventually shift to every third day due to declining mail volumes.
  • While parcel deliveries surged post-pandemic, Australia Post faced increasing competition from global and low-cost operators.

With Australia Post facing major changes, from fewer letter deliveries to increasing competition in parcel services, how do you think this will impact everyday Australians?

Let us know your thoughts in the comments.
 

Seniors Discount Club

Sponsored content

Info
Loading data . . .
I send birthday cards to my family and friends. The time the letter takes to arrive has decreased. I always allow extra time but there has been no need to.

I was speaking to my cousin in Sydney who works for a Barrister. They are now sending important documents through using priority mail with Australia Post as it is more reliable and cheaper than some of the couriers.

So although Australia Post has been criticised in the past, perhaps it is time that we gave them a second chance.

I love receiving birthday cards and christmas cards. It is much more personal than an email.

So help Australia Post, send a letter to your friend or relative interstate and keep it a viable enterprise.
I prefer sending greeting cards by snail mail. Much more personal.
The postage stamps are reasonable enough on the pensioner's rate.
Would be nice if the stop closing post offices and keep expanding on the additional services.
I am no economic genius, but I do know this. If you make a product affordable, people will buy. If you price it our of Mr/Mrs average reach, you will lose money. Profit can be achieved by selling a lot at a lower price. The Post Office is spending too much time trying to find ways to cut corners and not enough time creating attraction to their product.
 
It's all about profit how come 80 years ago they delivered mail every day and on Saturday yet today they want to reduce the number of days they deliver the only reason is for profit no company gives a sh-t for actual customers
I guess their employees now get superannuation, holiday pay, wet weather pay, a shorter working week, RDO's, sick and carers pay, public holidays, long service leave, maternity leave and a pie warmer for their lunches etc etc. I'm sure 80 years ago this was not the case, but I bet my bippy you can blame it all mostly on union involvement.
 
  • Wow
Reactions: Sherril54
What the bloody hell do they expect? For the last six or seven years the service has gone down hill. And the mongrels delivering are making it even worse. Aus Post need to pick up their game if they want to stay competitive.
Well, our local Post Office and employees are great. We get our mail, parcels, can withdraw cash, and always with a welcome and smile.
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else
  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×