General News

Licensee Post Offices to get an additional $16 million a year

Australia Post will invest an additional $16 million each year into its more than 2800-strong Licensed Post Office Network, supporting the role of Post Offices in communities across Australia and the ongoing sustainability of the Network.

This investment follows the new agreement made with Licensed Post Offices in 2019 which to date has contributed $55 million in additional payments to Licensees over the past two financial years.  

Australia Post Group Chief Executive Officer and Managing Director, Paul Graham said these changes are part of Australia Post’s continued investment in the Post Office Network and recognise the importance of the personalised and local service delivered by Australia Post’s valued Licensed Post Office partners. 

“We are working with our Licensee partners to ensure they can keep pace with changing customer needs, serve their community, and grow their business.

“Our Post Office Licensees are hardworking small business owners who are integral to how we deliver for Australia.  They are the central hub in communities right across the country, support small businesses to grow and thrive, keep people connected and are a key part of the local economy. 

“The role of the local Post Office has never been more critical than it has over the last two years as we all grappled with the impacts of COVID-19. The local Post Office is providing access to vital services that would not be easily accessible otherwise. 

“Changes include that Licensed Post Office operators will now receive increased Community Service Payments of up to $3,000 per year (based on the average daily customer service volumes) in place of the current fixed Representation Allowance. Licensees will also be eligible for new incentive payments which reward excellence in operational compliance and the achievement of performance targets.

“Additionally, annual minimum payment allowances will also increase by $2,500 for Licensed Post Offices in metropolitan areas, $5,000 for those in rural areas, and $10,000 for those located in remote locations, ensuring the smallest Licensed Post Offices remain viable and can continue to support their local communities who rely on their services.

“I would like to acknowledge and thank the Licensed Post Office Group for the considerable time it has put into this process and the Post Office Agents Association Limited for its valued input and participation into these discussions,” Mr Graham added.

Executive Director of Licensed Post Office Group, Angela Cramp said:

“After a lengthy and constructive consultative process with Australia Post, we’re very pleased to see these new payments come into effect, recognising Licensees for their dedication, hard work and the way in which they support their local communities.”

Bob Chizzoniti, Director, Post Office Agents Association Limited said:

“These changes to LPO payments will result in Licensees being better off overall, including Licensees in rural and remote Australia.”

Licensees will start to see payment increases from 1 March 2022, backdated to 1 January 2022, with other changes taking effect from 1 June 2022.