The future of Australia Post is up for debate as the government seeks to rethink the future of letter deliveries in the country.
The government is looking to public opinion to help shape the future of its services, as in the next decade many households are projected to receive only one letter a week.
The debate over the price and frequency of letter deliveries has been ongoing for years, but now the government is seeking to consult the public to determine the future of the postal service. The consultation process is aiming to explore how Australians use the postal service, and how the service could be improved to better meet the needs of Australians.
Currently, the cost of sending a letter within Australia is more expensive than sending a letter overseas, and the frequency of letter deliveries has decreased in recent years due to the rise of digital communication.
Australia Post reported a significant financial deterioration last month, with a record first-half letters loss of $189.7m, marking the first full year loss since 2015.
By 2032, modelling predicts that the average household will receive approximately 1.2 letters per week, which is half of the 2.4 letters they were receiving in 2007-08.
The government released a discussion paper on Thursday suggesting that, similar to what has occurred in other countries, the price of sending letters will need to be raised in order to compensate for the decreasing demand and expenses related to other services.
The government declared it would like to hear the public’s opinion on whether adjustments to postage rates should be made in order to enable Australia Post to cover the actual cost of its services, while still providing discounted mail prices for concession card holders.
Australians are being inquired as to whether they should abolish the priority letter service regulation.
