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
