Australia Post has recorded a pre-tax loss of $200m for the 2022-23 financial year, its first annual loss since 2015 and only the second since becoming a self-funded government enterprise in 1989. The loss was driven by a $384m deficit in its letters business, which saw losses increase by more than 50% compared to the previous year.
Chief executive Paul Graham warned that without regulatory changes, further losses are expected, potentially matching the scale of Canada Post's C$548m loss or Royal Mail's £1bn loss. Australia Post is urging the federal government to support modernisation, including reducing letter delivery frequency, closing some metropolitan post offices, and increasing stamp prices beyond inflation.
The company's community service obligations, which include five-day-a-week deliveries to 98% of addresses, cost $442m in the last financial year, up 27% year-on-year. Australia Post noted that 97% of letters come from government and businesses, but it is currently barred from charging corporate customers more than households for mail delivery.
Australia Post has called for the removal of minimum retail outlet requirements and adjustments to proximity rules, arguing that some metropolitan areas are oversaturated with post offices. For example, there are 73 outlets within 7.5km of Darlinghurst in inner Sydney and 79 within 7.5km of Brunswick in inner Melbourne. Closing some of these, it says, would not adversely impact customers and would improve the viability of remaining offices.
Communications Minister Michelle Rowland described Australia Post as a 'cherished national institution' facing significant structural challenges, and said the government is committed to supporting its sustainability. Australia Post's submission to a government consultation warns that without modernisation, the organisation's financial position will rapidly deteriorate, risking the ongoing sustainability of its services.
