In an era where the click of a button can send a message across the globe, the humble letter has seen better days. As we embrace the digital age with open arms, our reliance on traditional postal services has dwindled, leaving institutions like Australia Post grappling with the consequences. The latest financial reports are in, and they paint a stark picture of the challenges faced by our national postal service.
Australia Post has reported a pre-tax loss of $88.5 million for the 2023–24 financial year, marking its second annual loss since the 2014–15 period. The Treasury’s budget documents have highlighted this downturn as a reflection of the global and national shift towards digitisation, which has fundamentally altered the way individuals and businesses interact with postal and related services.
The government has taken note of the ongoing financial uncertainty and has signalled the possibility of stepping in to provide financial assistance to Australia Post in the future. This comes on the heels of a package of reforms announced in December 2024, which aimed to enhance Australia Post’s productivity, shift its focus towards parcel delivery services, and bolster its financial sustainability.
Earlier this year, Australia Post’s chief executive, Paul Graham, made a statement that may have left many Australians pondering the future of their mail delivery. He indicated that Australian households could eventually expect to receive letters only every third day. ‘As we see mail decline, we believe it’s inevitable that we’ll need to move to every third day and beyond,’ he said. The timeline for this change remains uncertain, as it will depend on the rate of decline in mail volume, but it’s a topic that Australia Post plans to discuss with the government post-election.
While letter delivery continues to struggle, the parcel delivery service has experienced a boom, particularly since the onset of the COVID-19 pandemic. With the cost of living on the rise, consumers have increasingly turned to online shopping in search of bargains. However, Australia Post’s dominance in the parcel market is far from guaranteed. The sector is fiercely competitive, with new players entering the fray, including global platform operators, gig economy services, and low-tech, low-cost alternatives. These entrants are chipping away at Australia Post’s customer base and market share.
‘That’s, you know, the thing that certainly keeps us awake at night,’ Mr Graham confessed. ‘Competition is intensifying, and our traditional revenue streams are shrinking.’
The Australian Competition and Consumer Commission (ACCC) is currently considering an Australia Post proposal for a further 20-cent hike in letter delivery costs. However, even with this potential increase, letter delivery services are not expected to return to profitability anytime soon.
As Australia Post adapts to the changing landscape of mail and parcel delivery, these developments may have an impact on how Australians receive their mail in the future. While some may welcome the shift towards digital communication and parcel services, others might have concerns about reduced letter deliveries and potential cost changes.
How do you feel about these changes? Have you noticed any differences in your mail service recently? Share your thoughts and experiences in the comments below.
Also read: Signed, sealed… stolen: Australia Post worker’s $400,000 theft busted
I am very impreseed with delivery times. Last week I ordered some supplements from California on Monday. This week they were on my doorstep by 9am Monday, delivered by a smiling A Post employeee who called out as he came in to the courtyard to place the box where I had requested. This week I ordered from Healthylife in Australia on Tuesday and box was here in 24 hours. both were free delivery
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I get all my bills by e-mail, thus not clogging up my letter box, and being able to have them within 24 hours of them being ‘printed’. There’s only one delivery that has to be received in my letter box, and that’s a Sudoku book all the way from Europe (it’s not available in my local newsagent) once every 4 weeks.
I keep copies of all my bills on my computer and then at the end of the financial year, I transfer them to a ‘spare’ HDD to keep for future reference if needed. This ‘saves’ reams of paper being kept and clogging up my file drawer, which is now non-existent.
I used to work for Australia Post in the late 1980s to early 1990s, and saw a very big shift in what was being posted. It’s being going on for many years.
So from every 2 days they are now looking at every 3 days or even once a week but whatever it still has to continue, many people don’t have a computer and now days with companies actively discouraging contact by phone contact by mail is sometimes the last option. As for costs, Australia Post makes a motza out of the parcel trade now with high prices, often so high that they exceed the cost of the contents being sent but they are already moaning about increasing cheaper competition in the field. As for postal times, it’s a mixed bag, sometimes pleasantly surprised at the speed but to make sure I now send birthday cards interstate a week before, a letter from overseas both ways can take 6 weeks. That said the posties on the ground provide a great service, in my area at least, post office staff (many are franchises now I think) can be very helpful or a little officious at times, luck of the draw.
The staff at the post office in Latrobe are excellent in service and attitude, always willing to help make a choice of an envelope. and the delivery, when the postie lady or guy has a parcel, she always rings the bell, unless I am at the open the door ready to recieve. If at any time, she or he can’t get an answer, it goes back to Latrobe P.O with a card in the mailbox telling me where to collect. This is is how it should be. If this service was set nationwide, there wouldnbot be any theft by moroins. I am now in Qld, where the parcel is just left on the porch. No knock or ringing of doorbell. THanks, Marrisa, Holly, and Michael.
I’ve gone digital for most things but I would be sad to stop sending actual birthday and Christmas cards. If I’ve left it a bit late to post a card I send a nice virtual one but it’s not as personal as the real thing.
It’s going to be hard for people who don’t use or can’t afford to use the internet.
Generations are living longer and I feel we should still cater for older folk who don’t want to use the internet and ot just leave them behind.