Last week the Australian Government confirmed that it had agreed to a proposal by Australia Post to take an extra day to deliver a regular letter.

Australia Post say they need to reform their delivery model to meet modern needs and Federal Communications Minister Michelle Rowland approves.

She says the changes strike a balance between high quality service and business viability after it was revealed Australia Post recorded a $200 million loss in the last financial year.

“Australia Post belongs to all Australians," Minister Rowland said. "Modernising Australia Post will put it on a surer footing so it can deliver the essential community services Australians need – including those in rural, regional and remote areas”.

“Australia Post can’t stand still. Consumer and small business demands are changing, and Australia Post also needs to adapt."

Back in 2008 Australians on average were receiving nine letters a week from the local postie.

Fast forward fifteen years and Australia has witnessed a dramatic shift in its mailing habits.

These days Australians receive on average just two letters a week at the same time as demand for parcel deliveries is skyrocketing thanks to the ever-expanding online shopping boom.

Over 2024, daily letter drops will be replaced with deliveries every second day.

Parcel delivery, priority mail, and express mail will all still be delivered daily.

While rural roadside deliveries, which are already restricted to twice per week (road conditions permitting), are likely to be unaffected this has not been clearly stated.

Trials have been rolled out at six locations in outer metro suburbs across Australia, and have found that posties are carrying 20 per cent more parcels per mail run under the new system.

Local trends support change of focus

Les Slacksmith, who operates the Coonamble Post Office, says that despite a lack of information available, the changes would be in line with trends he's seen.

"Overall letters have been decreasing immensely, and parcel numbers have been booming," said Mr Slacksmith.

"We haven't heard anything about the changes yet."

"Our mail is delivered by Dubbo, so it's virtually impossible to determine the letter to parcel ratio, but the parcels have been growing."

The 2023 'Inside Australian Online Shopping' report by Australia Post found that in rural and remote areas like Coonamble online shopping frequency increased by 5.7 per cent in 2022 compared to 2021.

The cost of postage stamps is set to rise again.

The death of letters?

Within the announcement are a few other changes to the operation of Australia Post including "the flexibility to acknowledge the true cost of mail delivery".

In a move that some have dubbed "a plot to kill letters", the price of a standard postage stamp is expected to jump up by 30 cents from $1.20 to $1.50 soon in the new year.

It also includes price increases at the same rate (25%) for the delivery of ordinary large letters up to 250 grams.

The most recent increase was in January 2023, which a stamp from $1.10 to $1.20. The previous rise was from 70 cents to $1.10 in 2019.

The latest increase is yet to be approved by the Australian Competition and Consumer Commission, who are expected to make their comment early in 2024.

Prices will remain unchanged for concession card holders ($0.60 cents) and Christmas stamps ($0.65 cents).