Australia Post Modernisation and Long-Term Financial Sustainability

Announcement date
6 December 2023

Link to announcement

https://minister.infrastructure.gov.au/rowland/media-release/ensuring-australia-post-can-deliver-more-australians

Problem being addressed
Australia Post is a national institution that provides essential services to Australian communities, particularly in rural and remote Australia. With the digitisation of the economy changing how people and businesses use postal services, it is essential to ensure postal services meet the needs of the Australian community both now and into the future. The modernisation of Australia Post is essential for it to remain financially sustainable, able to invest in their products and services and continue to employ thousands of people to support national productivity and supply chain resilience. 

Proposal
A combination of reforms will be introduced to the existing regulatory framework including:

1. Reduction of delivery frequency and relaxation of the timetable for letter delivery;
2. Adoption of modern area classification definitions in the Performance Standards Regulations;
3. Removal of the regulated requirement for a priority letter service and,
4. Reform of letter pricing oversight. 

Assessed Impact Analysis outcome

Adequate

Assessment comments

To be considered ‘good practice’ as per the Guide, the IA would have benefited from further examination of the likely workforce implications of the proposal and the anticipated effects on Australians – particularly customers in regional and remote areas. Understanding the elements of the regulatory settings that would change and how these changes would reduce costs to Australia Post will be central to the ongoing monitoring and evaluation of the success of these reforms.

Regulatory burden

The Department has presented an estimate of regulatory burden as negligible or nil. However, given the uncertainty of likely costs and benefits at time of decision, OIA will publish additional detail on specific implementation arrangements provided by the Department as an addendum in 2024. Upon publication of this addendum, OIA will also advise the Department on whether a post-implementation review is necessary to examine and quantify the impact of the changes once they have been made.