Modernising Australia Post

The Albanese Government is delivering on its commitment to help Australia Post modernise and meet the changing needs of consumers and small businesses, with new performance standards to take effect from 15 April 2024.

Latest figures from Australia Post show that four in five Australian households bought something online in 2023, with 9.5 million households receiving a parcel last year. Meanwhile, letter volumes continue to decline, reducing two thirds since their peak in 2008.

Supporting Australia Post’s long-term financial sustainability means helping the postal service to modernise its delivery networks, while supporting good jobs.

Informed by over one year of public consultation and engagement with consumers, small businesses, licencees, advocates and Australia Post’s workforce, the new performance standards will:

reduce reserved letter delivery frequency 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;
allow Australia Post to change the way it manages priority mail, so it can deliver services at a more commercial rate, and work with customers to set appropriate terms and conditions;
update the geographical classification of Australia Post retail outlets to reflect the current Australian Statistical Geography Standard, rather than an outdated geographical classification based on the 1991 Census.

The new standards will not change the minimum number of post offices that Australia Post must maintain nationally and in rural, regional and remote areas, or the services available at Australia Post retail outlets.

Posties will continue to deliver daily to their rounds, although the composition of their deliveries will change to support the daily delivery of parcels.

The new delivery standards have been informed by close collaboration between Australia Post, its workforce and the Communications Workers Union on co-sponsored delivery trials.

The successful trials decreased the frequency of letter delivery and expanded delivery points by more than 10% per round. This enabled postal workers to carry up to 20% more parcels, achieving real productivity improvements, and demonstrating it is possible to modernise postal services while supporting secure, well-paying jobs.

Efficiencies in the letter delivery business will enable Australia Post to invest more in the products and services that its customers need and want, such as more parcel posting and collection places that are open at more convenient days and hours, including parcel lockers.

The Government will now finalise a new Statement of Expectations for Australia Post that reflects the new delivery model, and ensures a priority letter service is maintained and Australia Post continues to support the Australian Electoral Commission in meeting its obligations.

For more information on the new performance standards, visit https://www.infrastructure.gov.au/media-communications-arts/post/australia-post

Quotes attributable to Minister for Communications, the Hon Michelle Rowland MP:

“Australia Post is a publicly-owned national institution cherished by millions of Australians.

“The way Australians use the national postal service is changing, and its critical Australia Post modernises to support customers and small businesses, local communities, and support greater economic productivity.

“These amendments reflect the way Australians now interact with Australia Post, and will help improve the company’s financial sustainability.

“I thank the many consumers, businesses, workers and advocates who engaged with the Government through this process, dating back to the consultation paper we launched in March last year.

“These changes show it is possible to modernise and boost productivity, while also supporting good, secure postal worker jobs”.

Quotes attributable to Minister for Finance, Senator the Hon Katy Gallagher:

“These changes support Australia Post as it evolves to meet the current needs of Australians. These changes also ensure Australia Post’s ongoing financial sustainability which will enable it to continue serving all Australians, now and into the future.”