Senator the Hon Katy Gallagher

The Albanese Government is delivering on its commitment to help Australia Post modernise and meet the changing needs of consumers and small businesses.

In April this year, the Government modernised the Australia Post performance standards to reduce letter delivery frequency to every second business day so that posties can carry more parcels to meet increasing business and consumer demand for faster parcel delivery.

Australia Post is already starting to see early financial, performance, and productivity improvements – generating benefits to millions of Australians who use the service each week, including more parcels delivered per postie per day over bigger delivery rounds, with better parcel delivery on time performance.

The new delivery model is currently operating in 36 delivery centres across every State and the Northern Territory, and when fully implemented across the delivery network will allow posties to deliver millions of additional parcels every year.

The productivity improvements have also contributed to $56 million in cost savings through the rollout of the new delivery model, to be reinvested in electric postie bikes and the expansion of regional parcel facilities.

As consumer and business shopping habits continue to evolve, it is vital that Australia Post continues to modernise to meet community needs, including more investment in the parcel delivery infrastructure, technology and people who support the delivery of more than 2 billion postal items every year.

The reforms were implemented following more than one year of public consultation and engagement with consumers, small businesses, licensees, advocates and Australia Post’s workforce, and co-designed trials between Australia Post and the Communication Workers Union.

The Government is continuing to monitor progress to implement the new delivery model across Australia, to ensure reforms remain on track to support the long-term financial sustainability of Australia Post.

Quotes attributable to Minister for Communications, the Hon Michelle Rowland MP:

“The decline in the letters business and post office transactions have contributed to Australia Post’s financial challenges and the Government has taken steps to ensure this cherished national institution continues to deliver for every Australian.

“I commend the Communication Workers Union (CWU), Australia Post and the delivery workforce for collaborating to progressively implement the new delivery model which recognises that Australians want a better parcel service.

“The way Australians use the postal network is changing, and it’s critical Australia Post modernises to support customers and small businesses, local communities, and greater economic productivity - these changes show it is possible to modernise and boost productivity, while also supporting good, secure postal worker jobs.”

Quotes attributable to Minister for Finance, Senator the Hon Katy Gallagher:

“It is essential that Australia Post remains financially sustainable so it can continue to invest in its networks, services, and people. 

“A strong Australia Post ensures equitable services for Australians no matter where they live, and a more productive national economy.”

Quotes attributable to Australia Post Chief Executive Officer & Managing Director, Paul Graham:

“Australia Post worked closely with our team members and the CWU to design a more sustainable delivery model, enabling us to focus on what matters most to our customers – flexible and more reliable parcel delivery.

"These reforms were a crucial first step as we continue to build a more sustainable future for Australia Post, our team members, customers and communities.”

Quotes attributable to Communication Workers Union National President Shane Murphy:

“Our posties know their jobs better than anyone. Their hands-on role in the development and local implementation of the new model is a major factor in the roll-out’s early success.

"This genuine collaboration with CWU members has locked-in universally affordable access to the country’s best parcel delivery service – no matter where you live, whilst securing good quality, permanent full-time jobs for thousands of ordinary Australians across both our cities and our regions.”