Australia Post on the rocks as decline in letter sending leads to review of the service

Australia Post is on the rocks as a decline in traditional letter sending has led to a review of the postal service.

Posties are currently delivering 66 per cent fewer letters than their peak in 2007-08, which translates to a decrease of 3 billion letters.

The review comes as the government-owned organization is anticipated to report its first annual deficit since 2015, prompting a revamp of the staple postal service.

As the federal government seeks to rescue Australia Post, options being considered include raising postage stamp prices, reducing letter delivery frequency, and decreasing the speed of the priority letter service.

Per the Sydney Morning Herald, a document aimed at revitalising the company halting the flow of losses flagged letter deliveries as  “particularly cost burdensome”, and advised a further increase to stamp prices on top of the January increase from $1.10 to $1.20.

“The new rate remains below many other countries, and is 86 per cent below the average for OECD countries with two-speed letter delivery services,” the paper states.

Many Australians have expresses concern about the overhaul of the postal service, saying letter deliveries are an integral part of a government system and should not be a “money-making” business.

I see the federal Government is going to allow Australia Post , to cut back its letter delivery service, bloody hell it’s a service and should be treated as such, not a money making machine , I can remember when they delivered on a Saturday,let the parcels cross subside letters

— stephen (@johnsy123aus) March 1, 2023

We will pay more for all services if this goes ahead. EVERY attempt at privatizing public utilities has shown this.

— Stephen Dinham (@sdinhamunimelb) March 2, 2023

I can remember when Australia Post , Telecom (as it was), Commonwealth Bank and the utility providers were subject to community service obligations. Privatisations have resulted in massive cost increases combined with diminished or abandoned services

— Rod (@Rod74166858) March 1, 2023

However, others cite that privatisation is key to a working delivery system, as the government-owned service has been lacking for a while.

We need to be able to send documents in our job and use only Express Post or Registered Post so we have article tracking. With Ordinary Post you seem have about a 50/50 chance of it actually being delivered these days.

— Captain Nemo’s Left Sock. ???? 311.1 ppm. (@RuncibleH) March 1, 2023

Why can Amazon deliver to my doorstep but Australia Post can’t even be bothered to put a card in the mailbox to tell me they couldn’t be arsed trying to deliver my stuff?

— AussieGamer (@AussieGamr) March 1, 2023

While letter sending may be in decline, parcel deliveries remain steady, however, Australia Post has a lot of competition for parcel services with many opting to use private-owned companies.