The federal government has set new performance standards for Australia Post while ensuring the number of post offices across the country will not change.
Australia Post will take longer to deliver letters under new performance standards agreed with the federal government, recognizing its growing role in the parcel sector.
From Monday, letters will be delivered every other day instead of daily at 98 per cent of Australian locations.
At the same time, Australia Post will have an extra day to deliver standard letters.
For example, a letter sent within one state must 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 other day instead of daily at 98 per cent of Australian locations.
The government-owned corporation will also be able to change the way it handles priority mail, allowing it to deliver services “at a more commercial rate.”
A letter sent within a state must be delivered within four days and no more than five days. (Dan Himbrechts/AAP PHOTOS)
After trials began last year, households in the capital may already be familiar with the letter delivery extension.
But Communications Minister Michelle Rowland and Finance Minister Katy Gallagher assured Australians that the minimum number of post offices across the country will not change.
And post offices will continue to deliver daily, although their deliveries will favor packages.
“These changes reflect the way Australians now interact with Australia Post and will help improve the company’s financial sustainability,” Ms Rowland said.
According to Australia Post, four in five households bought something online in 2023 and 9.5 million received a package.
But letter volume has dropped by two-thirds since peaking in 2008.
Earlier this month, the price of a stamp for a standard letter increased from $1.20 to $1.50.
The average Australian sends around 15 small letters a year and receives two a week, although that figure is expected to decrease to one a week over the next five years.
In March, Australia Post reported a pre-tax profit in the second half of 2023 of $33.6 million, up 42 per cent on the same period in 2022.
The increase was attributed to the delivery of almost 100 million parcels across Australia.
The letter business posted a loss of $182.1 million in the six months ending in December, as letter volume fell 11.9 percent.
Under the new performance standards, a letter sent within a state must be delivered in four days and no more than five.
Australian Post said the new delivery model will be rolled out nationally by the end of 2025, with couriers delivering priority mail, express letters and parcels every day, and standard letters and unaddressed mail every other day.
“Regulations governing Australia Post previously required us to focus on delivering letters every day, even when there were no letters to deliver,” chief executive Paul Graham said.
‘This has contributed to significant financial losses for Australia Post.
“This is an important first step for Australia Post to address those financial losses by focusing its services on the growing parcel delivery business.”