Sunday 31 May 2015

Australia Post Spends $50m To Help Ailing Franchises

The struggle for small retailers is no stranger to QVM Traders and it is interesting to see what is being done in other key retail areas to help alleviate the problem. The struggles of licensed post offices and community postal agencies have been well documented as income streams change dramatically for that sector. Digital communication has replaced traditional mail while parcel traffic has skyrocketed.

A Senate inquiry in 2014 declared that Australia Post needed to compensate franchisees for the failure of the mail agency’s franchise network. As a result, Australia Post will increase the minimum annual payment to more than 500 licensed post offices from $20,000 to $30,000 and introduce a $7,500 payment for some 500 community postal agencies. It will also increase payments for handling parcels.

This follows a complete review of the costs associated with running post offices and the payments necessary to ensure a fair return for operating the businesses. The measures have been generally well received with a warning that much more needs to be done to sustain a viable postal delivery network into the future.