Changes to Australia Post performance standards to improve financial sustainability

The changes will support traditional letter delivery and reflect the way Australians now use postal services.

The way Australians use postal services has changed.

Almost 1 in 5 retail sales are now completed online, with parcel volumes around 70 per cent higher than they were before the COVID-19 pandemic.

The average Australian household now receives less than one third of the number of letters it received in 2007-08 when letter volumes peaked.

Following extensive public consultation, in December 2023, the Australian Government announced a package of reform to help modernise Australia Post.

In February 2024, the Government consulted on proposed changes to the standards set out in the Australian Postal Corporation (Performance Standards) Regulations 2019, to ensure they will effectively deliver the postal reform package.

The new standards, to be operational from 15 April 2024, will:

  • reduce delivery frequency for reserved letters to every second business day for 98 per cent of locations
  • extend the time that Australia Post has to deliver letters by one business day
  • remove the performance standards regarding speed and accuracy of delivery for priority letters
  • update the geographic classification applicable to the performance standards for Australia Post retail outlets.

This means that while local posties will continue to be a visible presence in suburbs and towns across Australia each day, they will spend less of their day delivering letters and more of their time delivering parcels.

Efficiency gains will also allow Australia Post to invest in products and services that its customers need and want, such as even more parcel posting and collection places that are open at more convenient days and hours, including parcel lockers.

Australia Post will still be required to maintain a certain number of post offices nationally, and in rural and remote areas. The new standards do not change the type of outlets to be maintained or the services available at Australia Post retail outlets.

As part of the reform package, the Australian Government is continuing to work with stakeholders to develop a mechanism which will allow stamp prices to be set over multiple years. This will give Australia Post, consumers and business customers more certainty on future pricing.

Find out more:

•    Read the Minister’s media release
•    Visit Australia Post