Australia Post proposes business mail price increase from Sept 6

Australia Post is proposing increases to its business mail pricing from September 6 with the Print Post category that is used for sending magazines and periodicals set to increase by between 0.9 per cent to 4.9 per cent, despite the annual Consumer Price Index increase to March 2021 being 1.1 per cent.

Unaddressed Mail is set for an even steeper rise between 4.8-8.8 per cent, with Charity Mail also facing increases from 2-3.9 per cent.

The Australia Post proposal comes as the temporary every second day letter delivery model, that was introduced last year during COVID to help Australia Post deal with the booming demand for parcel delivery, draws to an end.

The Real Media Collective CEO Kellie Northwood told Sprinter the announcement of the Business Mail price increase is disappointing and that a submission is currently being worked on to submit to Australia Post in the coming fortnight.

The Real Media Collective has a close working relationship with Australia Post with Mark Roberts, Australia Post’s Head of Mail Channel & Product, a current member of the TRMC board.

The Real Media Collective is also a long-standing member of the Australia Post Mail Industry Working Group.

“The announcement of Business Mail price increases across all products from Australia Post is disappointing and this has been communicated directly to the senior executive levels within Australia Post,” Northwood said.

“These price increases arrive in a year that industry has supported a temporary service delivery reduction and other measures, however Australia Post has not steadied the approach to pricing as our industry recovers from 2020.

“The Collective has commenced discussions with Australia Post and key industry stakeholders across our mail sector members to determine our best approach.

“A price increase in September is incredibly difficult in an already challenging recovery year, a new Post Master General arriving and mail initiatives all in review.”

TRMC seeking more info

Northwood said TRMC has asked for additional information from Australia Post so the justifications for the price increases can be better understood.

“TRMC has called for additional material and data from Australia Post to understand the justifications of these price increases, we continue to call for a group review, given the Mail sector subsidises the Parcels business, which is highly profitable for the organisation,” she said.

“Despite some years calling for this from both Australia Post and seeking support from Minister Fletcher’s Office this information remains unavailable. We continue to petition for this as it is critical to understand all cost imposts to Australia Post so we as an industry can understand and predict pricing levers that impact Business Mail.”

Co-operative solution

Northwood added all TRMC members are encourage to review The Real Media Collective’s Incentive Modelling Plan which is to be sent to Australia Post for consideration.

“We are calling on all members to review our incentive modelling plan as we prepare to submit a co-operative solution for Business Mail pricing for Australia Post consideration, this is planned to be presented to Australia Post in the coming fortnight. To any members who have not communicated feedback to this information request into TRMC, please either make contact directly via [email protected] or myself.”

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