Australia Post to invest a further AU$51.4m in its post offices

Australia Post has announced a AU$51.4m boost in payments through to 2019 to support Licensed Post Offices (LPO) and Community Postal Agencies (CPA) across Australia. Since 2013 Australia Post has invested AU$125m in annualised additional payments to support its post offices. These payments follow recommendations of the Senate Inquiry into the relationship between Australia Post and its licensees.

With the introduction of these additional funds Australia Post has also introduced a new small Post Office support plan to increase the minimum annual payment to nearly 1,000 smaller Post Offices and increased the street carded parcel rate, said to benefit more than 1,800 LPOs.

Ahmed Fahour, the company’s Managing Director & CEO stated that LPOs and CPAs represent over 80% of the national Post Office network and play a vital role in connecting communities. “We’ve been working closely with our licensees to identify how to best support them in the face of digitisation, a significant challenge facing our traditional letters business,” he said. “The new small Post Office support plan will immediately strengthen the future sustainability of 478 LPOs and 495 CPAs across rural and remote Australia. We have also more than doubled parcel handling payments – with the street carded parcel rate increasing from 60 cents to AU$1.60.”

Australia Post also plans to introduce a new payment for licensees to share in revenue when MyPost account customers complete a transaction online and identify their “home” post office. This payment will be finalized over the coming months.