The Lachlan Shire Council has voted unanimously to support calls for a national public post office bank, after the NAB closure dwindled Lake Cargelligo banking capacity significantly.

The idea for a public post office bank was presented by the Australian Citizens Party in 2020, proposing Australia Post forms its own state-owned bank to mitigate the impact of the local exodus of bank branches in regional areas, and create competition for existing banks. 

At last month's council meeting, Lachlan councillors voted to support the campaign by writing to State and Federal Members of Parliament. 

In Lake Cargelligo, the local post office is already upholding local banking activity through Bank@Post, a model that allows customers some banking services through the post office.

Banking institutions pay Australia Post to offer these services.

A public post office bank would differ from Bank@Post, providing the service of a nationwide government-owned bank, rather than facilitating banking activities on behalf of other businesses. 

For Lake Cargelligo, like other towns suffering from branch closures, the demand for Bank@Post has grown significantly. 

“There’s no way in the world they’re getting compensated (enough) for their effort,” Lachlan Shire Council Mayor Paul Phillips said. 

Since taking on the larger workload, Council noted more reports of abuse from customers at the post office.

“It’s very disappointing.”

“(The post office) only doing it now for the Lake Cargelligo community, but I think if (they) gets any more hassled (they'll) stop doing it,” Cr Phillips told the Council. 

In a letter to the ongoing federal inquiry into regional bank closures, Australia Post CEO Paul Graham said that the growing demand for Bank@Post is not sustainable.

“Post offices are not suitable for a bricks-and-mortar bank, and the scope of services available through Bank@Post is not currently suitable for all customers,” Mr Graham said. 

The cash demand for businesses is one flaw in the model, with local post offices rarely carrying what a local bank might.

During inquiry hearings, Mr Graham said to continue under the Bank@Post model, Australia Post will need to expand their limited range of services and increase the availability of cash. Negotiations with banking institutions to better compensate Australia Post for the increasing workload and facilitating a branch's roles are ongoing.

“At present we are flying in cash, at our own expense, to places like Coober Pedy and Kalgoorlie."

“It cost us $90,000 in the last 12 months to fly cash in, so that continues to be a challenge.”

Growing foot traffic in post offices also posed an issue to provide customer service, upgrade safes, security and CCTV. 

At Lake Cargelligo, remaining banks Commonwealth Bank of Australia (CBA) and Bendigo Bank are still available, which local businesses have taken to using rather than negotiating the limited services of Bank@Post.

A report is due from the inquiry by 16 May 2024.