Australia Post has welcomed changes to the regulations governing the organization that mean the delivery of non-urgent letters will now take place every second business day, rather than every business day. The change will be implemented progressively across Australia through to the end of 2025.
New Delivery Model
The Prescribed Performance Standards came into effect on Monday, April 15, 2024. These changes follow the Federal government’s announcement in December 2023 regarding the first phase of reform to modernize Australia Post. The national post has conducted a nation-wide trial of its New Delivery Model, which will be rolled out gradually until the end of 2025. The New Delivery Model sees posties deliver priority mail, express letters and parcels every day, while standard letters and unaddressed mail will be delivered every second day – meaning posties can deliver more parcels, more often.
E-commerce growth in Australia
Australia Post’s Letters business has been in unstoppable decline for more than a decade, the company reports, a trend that has been playing out globally. However, e-commerce continues to grow year-on-year, with 9.5 million Australian households shopping online in 2023. The changes to the regulations establish a platform for Australia Post to build a more financially sustainable business, while still providing stable employment for thousands of team members and delivering for customers.
Paul Graham, CEO and managing director of Australia Post, said, “This is a very significant day in the modernization of Australia Post and we welcome the new regulations for letter delivery. 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.
“Households now receive about two letters per week, and we expect this to halve in the next five years. By contrast, Australians spend about A$64bn [US$41bn] a year shopping online and want reliable parcel deliveries. Australia Post is the vital e-commerce link between those digital stores and the front door of millions of homes.
“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. The regulations governing Australia Post had previously required us to focus on everyday letter delivery, even when there were no letters to deliver. This has been contributing to significant financial losses for Australia Post. 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.”
For more of the top insights into the inner workings of Australia Post, read Parcel and Postal Technology International‘s exclusive interview with Paul Graham, group CEO and managing director, here.