Licensed post offices across Australia are “struggling to remain viable”, a new petition says, arguing restrictions on the types of products and services they provide should be lifted to boost profitability.
Beyond the post offices controlled by Australia Post, small businesses own and operate around 2,900 licensed post offices (LPOs) across the country.
They offer traditional postage delivery and pick-up, bill payment and select banking services, and are free to offer additional services, like newsagency sales and lottery tickets.
Many LPOs also offer a selection of homewares, toys, and accessories, acting as variety stores for their communities.
While demand for parcel delivery and pick-up services has expanded in recent years, the withering of Australia Post’s letter-sending business, and the transition to online banking services, has battered the LPO sector.
In the six months to December 31, 2023, Australia Post booked a gross profit before tax of $33.6 million, buoyed by extraordinary parcel delivery numbers.
However, over-the-counter transactions fell 4.1% through the period, causing major concerns within an organisation that is required by law to maintain a physical network nationwide.
There are “fundamental structural challenges confronting Australia Post as letters-use continues to decline and fewer customers utilise our retail network,” Australia Post CEO Paul Graham said in the March announcement.
This means “our outsized retail network will need to be addressed,” he continued.
In a new petition, Scott Etherington, an Australia Post licensee and chair of the LPO Group, argues the solution lies in expanding, not contracting, the services LPOs can offer.
“Australia Post has aggressively reduced its range of products and services over the last two years but has yet to replace them with new ones, severely reducing your post office’s income,” the petition says.
If post offices are allowed to offer a greater variety of services, “they will be more viable and be able to serve their community better”.
Working with additional service providers will allow LPOs “to remain viable businesses that can provide valuable services to local communities for years to come,” the petition adds.
The petition, addressed to the federal government, has accrued more than 300 signatures since its launch on Wednesday.
Signatories say in-person LPO banking services are favoured by older Australians, especially those in remote communities, who may find online services difficult to navigate.
“We will never not need post offices,” one signatory wrote.
“They provide a service that is crucial to remote and rural areas.”
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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