Australia Post reducing letter deliveries to every third day

Australia Post is struggling financially, reporting a loss of $88.5 million in the 2023–24 financial year. This is its second consecutive annual loss since 2014–15. The decline in mail services, as more people turn to digital communication, is a major factor behind the losses. The government may need to provide financial assistance due to these ongoing challenges. Recently, it introduced reforms to improve Australia Post’s productivity and focus on parcel delivery services. However, changes in mail delivery are likely. Australia Post’s CEO, Paul Graham, stated that households might soon receive letters every third day. The timing for this change is unclear and will depend on how quickly mail use declines. While parcel delivery services are thriving, Australia Post is facing tough competition. Many new players, including global companies and gig economy operators, are entering the market. This competition is a concern for Australia Post, which is finding it difficult to maintain its market share amid shrinking traditional revenue streams. Graham mentioned that the increasing competition keeps him awake at night.