Mitch Fifield (Victoria, Liberal Party, Manager of Government Business in the Senate) Share this | Hansard source

Thanks, Senator Back, for the question. Mr President, on Friday last the ACCC released its preliminary view that it would not object to Australia Post's proposal to raise the price of the basic postage rate from 70c to $1 for the regular service. While, as you know, decisions of the ACCC are matters for the commission, in its preliminary decision the ACCC noted that the new stamp price will have an important financial impact for Australia Post.

Australia Post reported a full-year after-tax enterprise loss for 2014-15 of $222 million, including a loss of $381 million in its letters business. This loss is driven by the continued decline of 7.3 per cent in letter volumes compared to 2013-14, with ordinary stamped letters falling by 10.3 per cent. Australians are now sending one billion fewer letters a year than they were in 2008, and the government is committed to ensuring that Post can maintain a sustainable and self-funding postal service for all Australians. Without reform, Post would be unable to stem accelerating losses in letters, threatening the sustainability of the entire business. On current projections, Post is projected to face losses of up to $6.6 billion over the next decade, and letters losses are projected to reach $12.1 billion over the same period.

That reform is essential to ensure that Post can continue to deliver a world-leading postal service. Post intends to introduce a new two-speed letter service, with postage for regular letters at $1, on 4 January 2016. It is important for all colleagues in this place to note that the concession stamp price will be frozen at 60c for 5.7 million concession card holders and that the Christmas stamp price will also be frozen at 65c for all Australians.