Australia Post today released its 2023 Annual Report, providing an overview of its business operations, financial performance and progress on strategic priorities during the 2023 financial year (FY23).
The Annual Report shows over the past five years, the number of delivery points has increased by 800,000, while the number of addressed Letters has decreased by 800 million. This trend is set to continue with increased use of digital communications and means each year it is costing Australia Post more to deliver less.
Australia Post, as part of its legislated Community Service Obligation, is required to send a Postie to every delivery point in Australia five days a week, even when there is often nothing to deliver. In FY23 the cost of Australia Post’s Community Service Obligation increased to $442.2 million, up 27 per cent from $348 million in FY22.
Australia Post CEO and Managing Director Paul Graham said the escalating headwinds further underscores the need to modernise Australia Post’s operating legislation.
“As a fully self-funded Government Business Enterprise, we want to operate a financially sustainable business. While we have been flagging the significant structural headwinds we face for some time, this year our challenges came into sharp focus, with Australia Post recording its first full-year loss since 2015.
“Unless we can secure support needed to reform our business, this is unlikely to be the last loss we make, which risks Australia Post requiring Government funds to continue operating. We are working with the Government as it considers what actions to take to ensure Australia Post remains a financially viable business that meets the changing needs of our customers and communities.”
The report reveals that Australia Post is now operating a distinct a two-speed business, with Parcels continuing to grow while Letters are in ongoing decline.
“We have continued to deliver both Parcels and Letters to all corners of Australia, supported through our vast retail network and our extended workforce of more than 63,000 team members.
“While we continue to deliver for our customers and communities, their habits and preferences have changed significantly since Australia Post was corporatised in 1989. We require flexibility to adapt Australia Post’s business that meets the needs of our customers today and into the future.”
Australia Post continued to roll out its Post26 Strategy during the year, which is focused on reshaping the business to meet changing customer needs, manage the financial headwinds and improve customer service.
“Guided by our Post26 Strategy, we’ve made good progress on simplifying our business to be future-ready. We are doing everything in our power to right the business, which includes focusing on our core business and simplifying our remuneration framework.
“Our Parcels business remains strong and supports Australia’s growing eCommerce sector, our AusPost app was the number one business app in the Apple and Android stores in December 2022, and we are opening our first Community Hub@Post in Orange, NSW, which includes an exciting new retail format,” Mr Graham said.
In FY23, the business also welcomed the Federal Government’s discussion paper on the Modernisation of Postal Services in Australia. As part of this process, Australia Post urged the Parliament and other stakeholders to embrace reform of the business to restore its viability.
“I’m confident we have the right plan in place to secure a positive future for our iconic business, however we will require support from all our stakeholders to ensure we can deliver on our modernisation agenda.
“Our modernisation focus is a unique, yet necessary, opportunity for us to shape Australia Post so it can continue to be the cornerstone of Australian communities for generations to come,” Mr Graham concluded.
The Annual Report is available on the Australia Post website at: https://auspost.com.au/about-us/news-media/publications
ENDS
Media contact:
Tracy Hicks, General Manager Communications, Australia Post
M: 0477 027 860
Katherine Perry, Senior Media Manager, Australia Post
M: 0411 247 629
