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Australia Post Reforms to “Turbocharge Ecommerce”

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By Published On: December 7, 20230 Comments

Australia Post has announced it will be stopping daily letter delivery as it focuses on parcel deliveries and efficiency.

The Federal Government has worked with Australia Post on a postal service modernisation reform, the results of which will see daily letter deliveries ended as the service focuses on prioritising parcel deliveries. 

Under the proposed new delivery rules, postal recipients will receive only parcels, express and priority mail on a daily basis, with ordinary letters and unaddressed mail to be delivered every second business day on an alternating basis. This delivery standard will be introduced for 98 percent of delivery locations in 2024. A trial has found the proposed reforms let workers carry up to 20 percent more parcels and deliver to 10 percent more locations.

“Given the significant decline in our letters business, we’ve worked closely with our team members and the Communication Workers Union (CWU) to trial new ways to deliver that are better for our Posties,” reads a statement from Paul Graham, Chief Executive Officer and Managing Director of Australia Post . “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.”

“As eCommerce continues to boom and fewer and fewer Australians send letters, the changes to letters frequency announced today will free up our posties to also focus on parcels and packages. This will further turbocharge eCommerce in Australia.”

Earlier this year, Australia Post revealed that it had delivered about half a billion parcels in 2022-23 and the average Australian household now receives just over two addressed letters a week. 

“After decades of discussion and debate about modernising Australia Post, we applaud the Federal Government for taking this important initial step to set us on the path to securing our future,” said Graham.  “We  also welcome the support from our union partners and team members in delivering these historic reforms. While this reform package will provide some meaningful financial benefits over the next four years, we look forward to working with the Federal Government on further reforms to ensure we remain financially sustainable beyond 2026.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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