Key Points
- Posties will soon only deliver letters to most Australians every second day.
- After recording a $200 million loss, Australia Post is shifting priorities to packages.
- An extra delivery day will be added for letter deliveries to make up for the change.
A lost love for letters means posties will only deliver them to most Australians every second day, but parcels will still be dropped off daily.
After recording a $200 million loss, Australia Post is shifting its priorities to packages, with half a billion parcels delivered to people in the last financial year.
Postal workers were able to deliver 20 per cent more parcels during a trial of the skipped letter rounds.
But an extra delivery day will be added for letter deliveries to make up for the change.
Priority mail delivery - which makes up 8 per cent of addressed letters - will also be revamped in a bid to have them delivered faster.
One postie will remain allocated to one round rather than needing to cover several routes.
Australians receive an average of two addressed letters a week.
Labor figures back revamp
Communications Minister Michelle Rowland says Australia Post needs to adapt to the changing digital environment.
"These new processes will mean Australia Post continues to deliver the high-quality letter service many Australians rely on while also growing its booming parcel business," she said.
"Modernising Australia Post will put it on a surer footing so it can deliver the essential community services Australians need."
"We've seen around the world that government-sponsored postal services are failing, we will not let that happen to Australia Post, and the way that we ensure its sustainability is by making changes," she said on Wednesday.
Rowland said that, despite the changes made to the service, the government would not move to privatise Australia Post.
"We recognise how important Australia Post is and the community service obligation that it provides, especially in rural and regional areas," she said.
Finance Minister Katy Gallagher says the organisation needs to save money so it doesn't go bust.
"The fiscal sustainability of Australia Post is vital to the government's ongoing commitment to provide high-quality postal services to Australians."
Roadmap is crucial first step in Australia Post modernisation
Australia Post CEO Paul Graham said the reform roadmap was a crucial first step in modernising the service, making it more sustainable while still providing secure employment for tens of thousands of posties and other team members.
"The changes to the frequency of letter delivery will enable us to focus on what matters most to Australians - fast and reliable parcel delivery with better tracking technology and quicker turnaround times for eCommerce," he said in a statement.
The service would continue to prioritise and protect vulnerable people, maintaining discount stamp pricing for pensioners and charities, while offering some of the lowest stamp prices in the developed world, he said.
Australia Post's proposal to increase stamp prices from $1.20 to $1.50 from early next year is being reviewed by the consumer watchdog, the Australian Competition and Consumer Commission.
Prices for concession card holders will remain at 60 cents and Christmas stamps will still be able to be picked up for 65 cents.
Posties' union praises expansion of trial
The introduced changes to the way post is handled are the result of a three-month trial beginning in May involving 28,000 customers in the Hornsby region of NSW.
Feedback from posties in the trial was positive, Communication Workers Union president Shane Murphy said.
Australians receive an average of two addressed letters a week. Source: AAP, Supplied / Dean Lewins
The trial then expanded to sites in South Australia, Western Australia, Victoria and Queensland with customers providing feedback to Australia Post.
"From all aspects - community, posties and for the jobs of the future - there has never been a better outcome," Murphy said.
