Major shake-up coming! What Australia Post’s latest move means for you
- Replies 27
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.’
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.
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.
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.’
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.
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.
.png){kind=icon}
