The federal government has set new performance standards for Post while guaranteeing the number of post offices across the nation will not change.
Post will take longer to deliver letters under new performance standards agreed with the federal government recognising its growing role in parcels.
From Monday, letters will be delivered every second day instead of every day for 98 per cent of locations across .
At the same time, Post will have an extra day to deliver standard letters.
For example, a letter posted within a state should be delivered in four days and no more than five.
Between states, deliveries should take between six and eight days.
From Monday, letters will be delivered every second day instead of every day for 98 per cent of locations across
The government-owned corporation will also be able to change how it manages priority mail, allowing it to deliver services ‘at a more commercial rate’.
A letter posted within a state should be delivered in four days, and no more than five days. (Dan Himbrechts/AAP PHOTOS)
After trials were set up last year, capital city households may already be familiar with the letter delivery extension.
But Communications Minister Michelle Rowland and Finance Minister Katy Gallagher reassured ns the minimum number of post offices across the nation won’t change
And posties will continue to deliver daily, although their deliveries will favour parcels.
‘These changes reflect the way ns now interact with Post and will help improve the company’s financial sustainability,’ Ms Rowland said.
According to Post, four in five households bought something online in 2023 and 9.5 million received a parcel.
But letter volumes have declined by two-thirds since peaking in 2008.
Earlier this month, the price of a stamp for a standard letter rose to $1.50, from $1.20.
The average n sends about 15 small letters per year and receives two a week – although that’s expected fall to one a week in the next five years.
In March, Post reported a 2023 second half pre-tax profit of $33.6 million, up 42 per cent on the same period in 2022.
The rise was attributed to the delivery of almost 100 million parcels across .
The letters business recorded a $182.1 million loss in the six months ended December, as letter volumes fell 11.9 per cent.
Under the new performance standards a letter posted within a state should be delivered in four days and no more than five
n Post said the new delivery model will be rolled out nationally by the end of 2025, with posties delivering priority mail, express letters and parcels every day, and standard letters and unaddressed mail every second day.
‘The regulations governing Post had previously required us to focus on everyday letter delivery, even when there were no letters to deliver,’ CEO Paul Graham said.
‘This has been contributing to significant financial losses for Post.
‘This is an important first step for Post to address those financial losses by focusing its services on the growing parcel delivery business.’