Australian rural mail delivery under threat

SOME rural mail deliveries could be disrupted if Australia Post changes force contractors to withdraw their service.

Australia Post is requiring people renewing mail delivery contracts to become incorporated, at a cost of up to $1500, before their tenders will be considered.

One contractor said she did not have the money to pay the extra cost upfront.

She said her accountant had told her it would cost up to $1500 to become incorporated as required.

The mother-of-three receives a part-pension and for the past year has delivered mail over two runs in northern Victoria — for one-hour three days a week and two hours five days a week.

“Last year I broke even,” she said.

“It’s a lot of rigmarole if you ask me.

“I’ll put the tender in and add the cost, but I don’t know if it’s worth it.

“I’d have to pay the cost upfront and I haven’t got that sort of money.

“I’ll probably have to look for work elsewhere.”

Australia Post spokesman Gary Highland said the business relied on a mix of fulltime staff and contractors, with “a lot of deliveries in regional and rural areas by contractor”.

“Incorporation gives us some guarantees — in relation to superannuation, insurance and tax — essential to provide a cost-effective service,” he said.

“It gives the contractor the flexibility of doing other work, and also allows us to use contractors as needed.”

Mr Highland said the cost of incorporation would be factored into tenders as people’s contracts came up for renewal so they would not be out of pocket.

Australia Post had 9660 mail contracts across the country in the last financial year.