Australia Post is increasing the costs of bulk mail as of July 1. It is the latest in a series of price-hikes for the now-profitable business, including 40 per cent increases in January 2016 and above-inflation increases in January 2017.

The postal monopoly is contacting its bulk mail customers, in a piece of correspondence which includes the warning that ‘we are reviewing our Business Letter pricing and can advise that business letter prices will increase at the beginning of the new financial year’.

It continues to say “We are providing you with the attached pricing guidance.  I am sharing this with you on a commercial in confidence basis to enable you to consider the new prices as you plan your business activities for the financial year ahead.

We are currently working through the changes and detailed pricing tables will be communicated in May.”

AP contacted Australia Post regarding the increases, and received a statement from an Australia Post spokesperson which says: ‘We have commenced confidential briefings to industry bodies and major customers around proposed price increases to bulk mail in July 2017. We are yet to determine the exact price increases and will continue discussions over the coming weeks’.

Andrew Macaulay, CEO, Printing Industries says that the parting decision by Australia Post’s outgoing CEO to increase business mail prices in July 2017 is a slap in the face to both the Government and to Australia Post’s biggest customer sector, the mailing industry.

“Once again, the process has no transparency, Australia Post has no accountability, business is deprived of the opportunity to do any sensible planning around the increases and Australia Post’s claims to the contrary are specious” says Macaulay.

Macaulay says has spoken to Canberra politicians about the hikes.

“Federal Ministers Fifield and Cormann are in no doubt about our views that this conduct is unacceptable and damaging.  We are now ramping up our concerns with Government and using Ministerial support to get to meet with the new CEO of Australia Post as soon as he/she is appointed” he says.

Macaulay says Australia Post is simply going for ‘the easy hit’ on its biggest customer segment to prop up its revenue without any formal or independent approval, which the ACCC no longer has to give.

“In propping up its own inefficient operations, Australia Post is slamming its business mail customers with more costs, risking irreversible damage to the mailing industry.

“It is fair to ask whether Australia Post is planning to price mail out of existence; whether when there is no longer an opportunity to gouge the mailing industry, will it again attack other consumers. At the point where the well is empty, will mail simply shut up shop, or will Australia Post’s social charter kick in, albeit too late?” says Macaulay.

AusPost says, “While we continue to cut costs in our business and drive network efficiency, letter volumes are in structural decline, falling by 11 per cent in the first six months of this financial year.  This decline is expected to continue and we must look at cost recovery measures. We are committed to maintaining a discount off the Basic Postage Rate for business customers.”

Compounding the issue for printers, increases in pricing have coincided with a reduction in services, leading complaints against the postal monopoly to explode. The Postal Industry Ombudsman reveals complaints about Australia Post had tripled from 2008 to 2016. An annual report notes a stunning increase in just one year, “In 2014-15 we received 5613 complaints about Australia Post, which was a 38 per cent increase on the previous financial year.”

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