FOLLOWING the recent announcement by Australia Post (AusPost) to halve its letter delivery frequency to every second day, a leading university professor warned the impact on rural and regional areas may be significant.
The federal government agreed to change the law to relax Auspost’s requirements for letter delivery, acknowledging Australians send far fewer letters than they used to.
Households now receive barely more than two addressed letters each week on average, down from 8.5 in 2008 – however parcel volumes continue to rise.
The New Delivery Model which came into effect on Monday will see posties deliver standard letters and unaddressed mail every second day across Australia through to the end of 2025, with express and priority letters to continue to be delivered daily at a higher cost to consumers.
The change takes place after AusPost’s price increase at the start of April, that saw reserved ordinary letters take a 25 per cent increase to the basic postage rate from $1.20 to $1.50.
With AusPost’s believed $200 million in losses for 2023, the everyday letter delivery service that had been the company’s previous focus was reported to have contributed to significant financial losses.
AusPost chief executive, Paul Graham said that the new regulations will enable the company to focus on flexible and more reliable parcel deliveries with enhanced tracking technology and more delivery options.
“This is a very significant day in the modernisation of Australia Post and we welcome the new regulations for letter delivery,” he said.
“Households now receive about two letters per week, and we expect this to halve in the next five years.
“By contrast, Australians spend about $64 billion a year shopping online and want reliable parcel deliveries.
“Urgent mail, including Express Post, will still be delivered every business day as it always has, and our commitment to the service and support we provide across Australia continues.
“With the strong support of the federal government, this is an important first step for Australia Post to address those financial losses by focusing its services on the growing parcel-delivery business and a better experience for our customers.”
However, Charles Darwin University professor, Steven Greenland said the new change is likely to impact many businesses and consumers who rely on the letter service, particularly in rural and regional locations.
“While the impact may not be so significant for those in the major cities, the service in smaller towns, and especially regional and remote areas could be significantly impacted,” he said.
“Many of these (areas) do not have daily letter deliveries and collections already, and the collective impact of the cuts will create even greater delays, and especially during the high demand periods like Christmas.”
Professor Greenland also said consumers and businesses therefore need to be better prepared and factor in greater lead times for posted mail and expect delivery delays, such as sending Christmas and birthday cards much earlier.
“(Businesses) might also look at other channels, such as online, although some consumers, including the elderly may find it harder to switch.
“For businesses that have been relying on mailed documents such as bills and invoicing, (they) must find alternative channels.
“The resulting further declining mail service will also have an impact on other business sectors, such as the already struggling print industry.”
