Finance Minister Katy Gallagher and Communications Minister Michelle Rowland will on Thursday canvass an overhaul of postage pricing and delivery frequency as options in a discussion paper aimed at modernising the company and arresting the tide of red ink. With letter volumes expected to continue a steep decline,the discussion paper notes letter delivery has proved “particularly cost burdensome”.
Any further stamp price hikes will come on top of the increase in January from $1.10 to $1.20,which the discussion paper said remained “relatively low” compared with the postage rate in other countries.
“The new rate remains below many other countries,and is 86 per cent below the average for OECD countries with two-speed letter delivery services,” the paper states.
The paper makes clear the government’s intention to keep Australia Post in full public ownership as it appeals for public feedback on “relaxing letter delivery frequency requirements,which are particularly cost burdensome in the face of declining volumes” and flags the option of “deregulating the priority letter service” to allow slower delivery speeds.
Not to be confused with express post,which guarantees delivery on the next business day,the priority letter service currently requires customers to pay an extra 55 cents for faster delivery in line with times set in regulations – for example,two business days for letters posted between capital cities compared with four days for regular post.
Announcing the consultation process,Gallagher said the government was “committed to ensuring that Australia Post continues to modernise to ensure that it is financially sustainable and continues to provide employment opportunities and deliver essential services to all Australians,particularly in regional,rural and remote Australia”.