Australian government supports Australia Post’s plan to reform its letters service

Australia Post announced that it welcomes the Federal Government’s decision to support its request for regulatory reform of its letters service. It said the changes would help keep post offices open and keep postmen delivering mail five days a week,ensuring that Australians everywhere can continue to access a letters service.

Australia Post also expects the changes to help stem growing losses in the mail service caused by changing consumer and business behaviour which was driving an alarming fall in letter volumes.

The government decision allows Australia Post to introduce a new Regular letters service delivered 2 days slower than the current timetable. People wanting to send mail to the existing schedule will pay more for a Priority service.

Ahmed Fahour, Australia Post’s Managing Director and Group CEO, said operational efficiencies from the new Regular service were critical to sustaining the overall letters service. However, he also stated that price increases were also needed to better recover the cost of the letters service and avoid cross-subsidisation from the profitable parcels business.

He confirmed that Australia Post would seek approval from the Australian Competition and Consumer Commission to raise the basic stamp price from AU$0.70 to AU$1 to better reflect the total cost of sending a letter. The basic stamp price would apply to the new Regular service.


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