Australia Post to provide $40m support package for rural post offices

Australia Post has unveiled a $40m ($37m USD) support programme to strengthen its network of regional and rural post offices. The state-owned company has promised increased payments for post office operators and improved point-of-sale technology to allow customers access to more services.

Plans also include an expansion of the new superstore concept of postal retail outlet, with 50 to be established in regional and rural areas in the next five years. The company currently has 11 superstores in its network.

Australia Post said the $40m in funding will come in addition to the $320m already paid each year to support Licensed Post Offices and Community Postal Agencies across the country.

Chief executive Ahmed Fahour said: “While letter volumes decline, we are committed to not only keeping our post offices open and vital to the communities they serve but also growing their relevance by evolving them from a reliance on letters through increasing the trusted products and services they offer.”

Payments

The rural sustainability package promises to increase minimum guaranteed annual payments for Licensed Post Offices and introduce a minimum payment for Community Postal Agencies.

It will also up payments for operators providing working space to mail and parcel contractors, and for representing Australia Post in the local community.

Australia Post said it will be offering connection to its electronic point of sale system for the 432 Licensed Post Offices that currently use manual processes, allowing their customers access to services like credit card payments and banking.

Christine Corbett, Australia Post’s Executive General Manager Retail Services and Consumer, said her company’s partnership with Licensed Post Offices was “absolutely vital”, and as a result the Post wanted to take action to grow LPO revenues and help maintain their viability.

“For over 200 years Australia Post has played a pivotal role, particularly in smaller and more isolated communities, where usage of Australia Post services and advocacy for the brand are highest,” she said.

“Even now, as we face some of the biggest challenges in Australia Post’s history, our focus has not wavered from helping communities connect and expand their reach toward new opportunities and greater prosperity.”

“Great news”

The Post Office Agents Association Ltd, which represents operators of Licensed Post Offices, welcomed Australia Post’s rural sustainability package, describing it as “great news” for those living in country towns and rural areas.

About half of the 2,900 LPOs across Australia are located outside of capital cities, it said, explaining that LPOs represent about 80% of Australia Post’s post office network.

Ian Kerr, the POAAL chief executive, said the initiatives will help keep post offices in rural communities.

“The initiatives announced today will go a long way to securing the long-term viability of country post offices,” he said.

“POAAL is pleased that Australia Post has listened to us. The announcement today recognises that rural LPOs are a vital cog in Australia Post’s network. They are critical to Australia Post’s boast of having the biggest delivery reach in Australia. It is essential that Australia Post keeps its rural network. The reach provided by this network of post offices is one of the key advantages Australia Post has over other delivery and retail networks.”