Christmas change-up: Australia Post announces major changes to delivery services

The Christmas shopping season is well and truly underway, and as usual, Australians are currently in the midst of a spending spree. With the rise of online shopping, Australia Post has been regularly inundated with packages around Christmas time for years now.

Throughout the rest of the year, packages and parcels also make up a majority of their deliveries, whereas letter sending has declined significantly. Letter volumes have reduced by two-thirds since their peak in 2008 and the average Australian household now receives just over two addressed letters per week.

Meanwhile, Australia Post delivered around half a billion parcels between 2022 and 2023. Combined with their flailing financial viability, it’s become evident that major changes are needed for the postal service to stay afloat.

Today, the Albanese government and Australia Post announced that major changes will be made to modernise Australia Post’s delivery services to keep pace with the changing times. After extensive consultation with their team members and the Communication Workers Union (CWU), the government and Australia Post have decided to reduce letter delivery services.

The frequency of regular letter delivery and undressed mail will be reduced to every second business day for 98 per cent of locations, while parcels will still be delivered daily. To reflect the new delivery frequency,  Australia Post will have an extra day to deliver regular letters across Australia. No changes will be made to letter delivery for urgent mail.

“These new processes will mean Australia Post continues to deliver the high-quality letter service many Australians rely on, while also growing its booming parcel business for the benefit of consumers, small businesses and its hard working staff,” Michelle Rowland, the Minister for Communications said.

A reduction in letter delivery has already been trialled at select sites across the country. According to Australia Post, these trials expanded delivery points by more than 10 per cent per round, and enabled postal workers to carry up to 20 per cent more parcels.

Further changes to allow more parcel deliveries by increasing the number of parcel sending and collection points are also on the cards. Over the next few years, the government hopes that further reforms will restore the financial viability of Australia Post.

“The fiscal sustainability of Australia Post is vital to the government’s ongoing commitment to provide high quality postal services to Australians,” said Katy Gallagher, the Minister for Finance.

Despite being owned by the government, Australia Post is expected to generate its income rather than receiving government funding.

The business recorded a 200 million dollar loss last year, so the hope is that these changes will allow it to remain a profitable business as the times continue to change.