'Stark' Australian Post warning: Your daily letters are at risk as $189m losses mount

Australia Post must undergo significant changes in order to remain a viable business and continue providing essential services across the country, its CEO has warned.

In a speech to the American Chamber of Commerce in Australia in Melbourne on Thursday, Paul Graham said the national postal service's "long-term viability is at risk" as it prepares to post a loss for the financial year.

"We will post a financial loss this financial year with our letters business, after posting a $189 million loss for the first six months of this financial year alone," Graham said.

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"Our extensive research shows that just one in 10 Australians are aware that we are no longer profitable.

"It's a stark message but the Australian community must understand that without change to their national postal service, its long-term viability is at risk."

Graham pointed to shrinking household mail volumes and customers embracing flexible options like parcel lockers over traditional delivery methods as reasons for Australia Post's declining profitability and said the case for change is clear.

"We are governed by the 1989 Australian Postal Corporation Act," he said.

"(It's) an instrument legislated before the internet boom and the creation of smartphones, when letters were the dominant form of communication, online shopping was yet to take hold and digital service provision largely did not exist.

"Performance standards issued under the Act are no longer fit for purpose to Australia Post as an enterprise or to the customers and communities we serve every day."

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Graham's address comes ahead of public consultation for a federal government discussion paper on Australia Post's future closing at midnight tonight.

And while the CEO said the consultation will help outline what kind of changes his organisation undergo, he also stressed the review in and of itself isn't the answer.

"There have been more than 11 reviews of Australia Post over the past 10 years," Graham said.

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"We do not need any more to repeat the same fundamental message: that the status quo is no longer an option for our business.

"What we need is the commitment and goodwill from the parliament to make the changes necessary to deliver a sustainable future.

"There may be a time later this year when parliamentarians are asked to consider changes to Australia Post to support the viability of the business.

"My simple request is to put the national interest first."

Graham also it is essential for the postal service remain publicly owned, rather than go down the privatisation route that the likes of Telstra and Qantas have taken.

"Australia Post is owned by the Australian taxpayer, but we are not financed by taxpayers, we are entirely self-funded," he said.

"We're proud to be a self-funded public enterprise – and we want to remain that way.

"We want to keep delivering essential public services to Australian communities and businesses – without taking a penny from consolidated revenue.

"That is funding that should go to schools and hospitals, not Australia Post."

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