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

Mar 03, 2023
A decline in letter sending has led to the review. Source: Getty

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.

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

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.

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