Australia Post is required to deliver letters to every Australian household five days a week, but the losses from its letter-delivery service are continuing to mount – to the tune of nearly $200 million in six months.
Australia Post says the average household now receives just over one letter per week, and that is expected to keep declining.
Chief executive Paul Graham says there’s a case to review the rules.
“Our letters business is in an unstoppable decline,” he says, adding that Australia Post needs to be financially, socially and environmentally sustainable.
Corporate mail, such as bills and bank statements, account for 98 per cent of letters, with the remainder made up of personal letters and cards, and unaddressed marketing letters.
The cost of stamps increased recently from $1.10 to $1.20, but that isn’t expected to significantly offset the decline in letter revenues.
The burden of delivering daily to households is also growing as the number of households climbs, increasing at roughly 200,000 every year.
Meanwhile, parcel deliveries are booming and that’s where Australia Post wants to invest in and focus on.
Communications minister Michelle Rowland says challenges within the “cherished institution” need to be carefully considered. So watch this space.
Do you still receive letters in the post? Would it matter to you if deliveries were not daily?
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