Postal Services Modernisation

Postal services have played an important role in the lives of Australian communities, individuals and businesses over the last 214 years. Australia Post’s extended workforce of more than 60,000 people and 4,300 Post Offices continue to deliver letters, parcels and essential services to communities and businesses throughout Australia.

The digitisation of the economy is changing how postal services are used:

• Businesses and government send more than 97 per cent of letters in Australia but are increasingly using digital communications channels, with the average household now receiving approximately one third of the number of letters each week compared to 2007-08 when letter volumes peaked.
• Post Offices provide a range of postal, financial, identity and retail services, however Australians visit Post Offices less frequently than they once did. Since 2013-14, retail transactions at Post Offices have declined 39 per cent.
• While traditional postal services continue to decline, Australians are increasingly relying on parcel delivery services. Almost 1 in 5 retail sales are now completed online, with Australia Post delivering over 500 million parcels in 2021-22.

The Australian Government is committed to helping Australia Post adapt to these changes so that it remains a cherished national institution, providing essential services to Australian communities, and stable employment for tens of thousands of Australians. This is particularly critical in regional, rural and remote areas of Australia, where Australia Post is a key provider of a wide range of services, and supports the economic and social wellbeing of many rural cities and towns.

The Government’s focus in the near term will be on working with Australia Post to improve productivity and revenue in delivery, while managing costs to support both sustainability objectives and benefits from modernisation. This may require changes to letter delivery standards and letter pricing arrangements.

The Government will work with Australia Post, licensees, businesses and communities to ensure retail network services meet the needs of modern Australia, consistent with existing regulatory requirements.

We are seeking submissions and comments from individuals, communities, charity organisations, businesses, Post Office licensees and agents, and the Australia Post workforce on options to modernise postal services. Understanding your expectations will assist the Government and Australia Post to meet the needs of contemporary Australia.

You can use the Discussion Paper below to help guide your submission.

Relevant documentation

• Postal Services Modernisation - Discussion Paper
• Media release - Consultation begins on delivering a modernised postal service

Consultation on postal services modernisation was open for submissions from 2 March to 27 April 2023.

Published submissions are available below. If your submission was intended for publication but is not available below, please contact the department by email or post as follows:

• email us at postalconsultation@instrastructure.gov.au
• write to us at:
• Department of Infrastructure, Transport, Regional Development, Communications and the Arts
  GPO Box 594
  CANBERRA ACT 2601
  Attention: Director, Postal Policy—Communications Services and Consumer Division

The department will publish your submission provided it meets the publication and privacy requirements.

Consultation on options to modernise postal services confirmed that Australia Post remains a cherished national institution, and is an essential service provider in regional Australia.

More than 1,000 diverse stakeholders encompassing individuals, community organisations, charities, businesses, and all levels of government provided their views and opinions on how they currently use postal services and what they would like provided by the postal service of the future.

More than 100 submissions in response to the Government’s 2 March 2023 discussion paper are being published. Confidential submissions and short comments will inform Government’s consideration of options and aggregated feedback will be detailed in the Government’s Impact Analysis Statement that is expected to be published later this year.

A variety of views were put forward. There is broad support for a well-designed package of reforms that continue to support the delivery of traditional postal services, supports growth services, and underpins the long-term financial sustainability of Australia Post.

The following key findings are preliminary insights from the consultation process. Further consultation with stakeholders will be undertaken over coming months to validate feedback and inform a final reform package.

• Australians support a financially sustainable Australia Post that can continue to support communities and businesses across the country.
• Directing resources to improve parcel services has wide support, with frequency, delivery choice and tracking all considered to be important features of a modern postal service.
• Changes to letter delivery arrangements, particularly frequency, have broad support. Should changes be agreed by Government, it will be important for Australia Post to work with users of the letters service to support their needs into the future. This includes support for elections, the Census and priority bulk business mail.
• Retail outlets in rural, regional and remote areas are highly valued. There is some support to optimise the retail network in metropolitan areas, expand services and better help communities (including to prepare, respond and recover from natural disasters).

The Government supports feedback from many stakeholders that any changes need to be well-planned, and allow time for users to adjust their processes and ensure vulnerable cohorts are not left behind.

The Minister for Finance and Minister for Communications – as Shareholder Ministers – will work with Australia Post and other stakeholders to implement a package of reforms that meets the modern needs of Australian communities and businesses, and supports Australia Post’s long term financial sustainability. The Government expects to consider a reform package later this year, including a detailed implementation plan.