Some Australia Post deliveries set to slow, as obligations relaxed

Australia Post has been granted temporary relief from delivery obligations as it deals with disruptions caused by COVID-19.

Australia Post delivery rider Aiden Grace. Picture: Zak Simmonds

Australia Post will deliver mail every second business day in metro areas while interstate mail will be delayed by up to five days after the Morrison government granted the postal service temporary relief from its community service obligations.

Australia Post will also suspend its priority letters service, which accounts for 12 per cent of daily letter volumes under the relief package, which aims to combat coronavirus-led restrictions such as strict social distancing measures and travel bans.

But it will maintain its express post service and frequency of deliveries in rural and regional areas.

Australia Post must operate a five-day a week delivery service under its community service obligations, which currently sets a performance standard of delivering mail within three business days in same-state metro areas and five business days between interstate cities.

The relief - which applies until June 30 next year - will allow it to deliver from every business day to every second business day in cities, while interstate deliveries will be pushed out by five days.

It comes after the postal service warned last week of up to week-long delays following the grounding of most of Qantas’s passenger fleet.

Australia Post relies on Qantas to deliver its express post and same day time-sensitive parcels, such as essential medical suppliers, and its decision to ground most of its passenger fleet has resulted in more than 100 tonnes a day of deliveries unable to travel by air.

The grounding and social distancing measures have led to a backlog of parcel deliveries, with Australia Post experiencing similar volumes to its Christmas peak period as most of Australia’s workforce works from home to limit the spread of COVID-19, fuelling an online shopping bonanza.

Finance Minister Mathias Cormann said the relaxing of community service obligations was necessary given the unprecedented disruption caused by COVID-19.

“Like many industries, postal operators around the world are being significantly impacted by COVID-19 – with acute downturns in letter volumes and international business,” Senator Cormann said.

“Australia Post is an important service all Australians rely on, which is why the government is adjusting Australia Post’s performance standards to give it greater flexibility to optimise its operations to meet community demands during this period.”

Senator Cormann said under the adjustments, Australia Post will be able to redeploy its workforce to critical areas experiencing a surge in volume, such as parcels and essential services.

“This will support customers and the viability of the business during this challenging time so it can continue to serve all Australians.”

Minister for Communications Paul Fletcher said the regulatory relief will allow Australia Post to support letter deliveries and help post offices stay open for business.

“Demand for e-commerce has skyrocketed as people stay home to combat the coronavirus health crisis. The changes we’ve announced today provide Australia Post greater flexibility to respond to the increased demand for parcels, which will help posties continue to deliver essential products and services to Australians, including pharmaceutical and grocery products,” Mr Fletcher said.

"We know letters remain important for many in the community, so Australia Post will continue to deliver letters according to a revised set of service standards, which reflect the current demand levels.”