Close-up of Australia Post sign at Brisbane GPO in 2022.

Australia Post says five-day-a-week letter delivery should be reconsidered after $200m loss

Australia Post’s chief executive told the Federal Parliament that changes needed to be made to the company’s business model as losses at its letter delivery service continued to mount.

The letters branch of its business has lost nearly $200 million in six months, according to half-year results released last week.

Australia Post is required by law to deliver letters to every Australian household five days a week, but these rules have been suspended in some areas during the pandemic.

Chief executive Paul Graham told a Senate Estimates hearing that there was a case to review the rules under which Australia Post was to operate.

“Our mail business is in unstoppable decline as volumes continue to decline and costs rise,” he said.

“We have strategies in place and the determination to ensure that Australia Post is financially, socially and environmentally sustainable so that we can continue to make a positive contribution to the nation.

“But we will have to explore other changes in the way we operate to put the company back on a stable financial footing.”

According to Australia Post, the average household now receives just over one letter a week, and this is expected to continue to decline.

Leave a Comment

Your email address will not be published. Required fields are marked *