The postal service is adapting to the evolving communication and shopping habits of Australians, making a notable shift in its business operations.
A significant transformation of the nation’s postal service is set to occur as Australia Post implements alterations to its delivery schedule. The new plan will reduce letter deliveries by half, enabling posties to focus on the more profitable parcel delivery sector. Currently, households receive two letters per week, but projections indicate that this number will drop to just one within the next five years.
However, the parcel delivery service has been incredibly successful, boasting a remarkable achievement of nearly 100 million packages delivered during the summer season. Beginning on Monday, there will be changes to the mail delivery schedule. Priority mail, express letters, and parcels will now be delivered daily, while standard letters and unaddressed mail will be dropped off every other day.
The overhaul is allowed under recently implemented performance standards for the postal service as part of the federal government’s commitment to modernise operations. Australia Post’s financial report for the first half of the 2023–24 fiscal year reveals a profit of $33.6 million. However, the letter section experienced a loss of $182 million during this period.
Paul Graham, the CEO of Australia Post, expressed his enthusiasm for the start of the delivery overhaul, stating that it was a significant milestone in the company’s modernisation.
“The new regulations will enable Australia Post to focus on what Australians want most, flexible and more reliable parcel deliveries with enhanced tracking technology and more delivery options,” Graham said.
The CEO of Australia Post emphasised the importance of prioritising reliable parcel deliveries in response to the significant increase in online shopping expenditures.
“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,” Graham said.
Australia will gradually roll out the implementation until the end of 2025.