The FACTS about Australia Post’s approved reforms

10th March 2015 Printing
Last week the Cabinet approved a proposal by Communications Minister Malcolm Turnbull to reform part of Australia Post’s letter delivery service. The announcement has been widely reported on by many publications, all with varying views, facts and figures. Below are the known facts and accurate information about the reforms and what it means for your business.

 

 

 

 

 

 

 

 

 

Main Changes 

  • The two-speed delivery timetable will become available to general consumers. This timetable has been available to business customers since June 2014. (Download our 2104 Bulk mail guide here)
  • Prices have been flagged to rise to $1 for a regular stamp and $1.50 for a priority stamp.
  • Australia Post does not have full control over the stamp rate. These prices are still overseen by the ACCC (Australia Competition and Consumer Commission).
  • There will be no changes implemented until September when Australia Post makes its bi-annual product update.

 

Delivery

  • Mail is still required to be delivered 5 days of the week
  • The two-speed delivery timetable will become available to consumers. There has been no indication of delivery changes for business customers
  • As per the March 2014 update surface (or off peak) mail has been replaced by the regular delivery timetable

 

Pricing

  • Changes to the pricing structure have been made to stem the losses for the letter delivery service, which according to Australia Post, cannot be offset by the growth in parcel delivery. These changes are in place of 2-3 day a week delivery, a $6.8b government bailout, privatisation, or the loss of our metro and regional post offices.
  • There has been no indication yet of price changes to business letter categories.
  • Pricing updates were last made in Feb 2014 which is standard Australia Post practice
  • Consession card holders will be able to purchase up to 50 stamps a year at the consession rate of 60c.
  • Christmas card rates will remain at 65c during the holiday season.

 

Recent Improvements to Business Letter Categories

 

Promotional mail 

  • Australia Post is in consultation with the industry to develop a new postal category for promotional mail pieces. This new category is specifically geared towards marketing, sales and promotional messages and will offer a greater discount than the PreSort category.

 

Charity mail 

  • During the 2014 Sept update a large letter category was introduced so charity mailers could take advantage of Charity mail rates for letters C5 and larger.
  • Presort medium charity mail category was discontinued
  • Pricing updates for charity mail used to run on their timetable but have been brought into the bi-annual updates with the other business letter categories.

 

What you need to do 

  • Consult your mailing house on the most cost effective mail solutions before starting a campaign
  • Keep your database clean. Return mail is wasted mail.
  • Integrate your communication mix. Mail is most effective when combined with digital channels.
  • Perfect your message and target your customers effectively. Australia Post has commissioned many industry reports and market research, all supported by ADMA and conducted by a 3rd party research company. These are all available on the Australia Post website. 

 

 

If you have any more questions feel free to give us a call on 08 9493 0477.