Australia's Postal Service Evolves: Almost All Letter Deliveries to Occur Every Other Business Day"

Beginning next week, Australia Post will only deliver letters every other day due to a generational shift in the country's postal service. Letter delivery to 98% of locations will be cut to every other business day starting on Monday, and delivery windows for regular letters will be extended by one business day.

Australia Post today welcomed historic changes to the regulations governing the organisation, with new Prescribed Performance Standards effective from Monday, 15 April 2024. These changes follow the Federal Government’s announcement in December last year regarding the first phase of reform to modernise Australia Post. 

Australia Post’s Letters business has been in unstoppable decline for more than a decade, a trend which has been playing out globally. However, eCommerce continues to grow year-on-year, with 9.5 million Australian households  shopping online in 2023. The changes to the regulations establish a platform for Australia Post to build a more financially sustainable business, while still providing stable employment for thousands of team members and delivering for customers.

Australia Post has conducted a national trial of its New Delivery Model, which will be gradually rolled out until the end of 2025. The New Delivery Model sees Posties deliver priority mail, express letters and parcels every day, while standard letters and unaddressed mail will be delivered every second day. This means Posties can deliver more parcels, more often.

Australia Post Chief Executive Officer and Managing Director Paul Graham said: “This is a very significant day in the modernisation of Australia Post and we welcome the new regulations for letter delivery.

“The new regulations will enable Australia Post to focus on what Australians want most; flexible and more reliable parcel deliveries with enhanced tracking technology and more delivery options.

“Households now receive about two letters per week, and we expect this to halve in the next five years. By contrast, Australians spend about $64 billion a year shopping online and want reliable parcel deliveries. Australia Post is the vital eCommerce link between those digital stores and the front door of millions of homes.

“Urgent mail, including Express Post, will still be delivered every business day as it always has, and our commitment to the service and support we provide across Australia continues.

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“The regulations governing Australia Post had previously required us to focus on everyday letter delivery, even when there were no letters to deliver. This has been contributing to significant financial losses for Australia Post.

“With the strong support of the Federal Government, this is an important first step for Australia Post to address those financial losses by focusing its services on the growing parcel-delivery business and a better experience for our customers.”

Meanwhile, Charles Darwin University Professor in Marketing Steven Greenland said , “Australia Post reported over $200m losses last year. To assist with cost cutting AusPost are therefore moving to standard letters and unaddressed mail delivered every second day from next week. This followed standard letter postal rate increases of 25% last week (April 3). Delivery frequency and price hikes are among a raft of cost cutting-related measures that include reduced collections and retail outlet closures.”

“While the impact may not be so significant for those in the major cities, the service in smaller towns, and especially regional and remote areas could be significantly impacted - many of these do not have daily letter deliveries and collections already, and the collective impact of the cuts will create even greater delays, and especially during the high demand periods like Christmas.” He added.

“Consumers and businesses will therefore need to be better prepared and factor in greater lead times for posted mail and expect delivery delays. They might also look at other channels, such as online, although some consumers, including the elderly may find it harder to switch. Also, sometimes it is not possible to plan for the stresses associated with waiting for urgent documents to arrive by post.

“For consumers, Christmas and birthday cards will need to be sent much earlier especially if you live regional or remote.

“For businesses that have been relying on mailed documents such as bills and invoicing must find alternative channels. Although businesses relying on ‘snail mail’ for marketing to both consumers and other business may struggle to find a suitable an alternative, since standard post has often proven to be the best for promotion and for lead generation. The resulting further declining mail service will also have an impact on other business sectors, such as the already struggling print industry.”

Under the regulatory changes, the delivery of non-urgent letters will take place every second business day, rather than every business day. The change will be implemented progressively across Australia through to the end of 2025.

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