Meet the unlucky Aussies who are about to pay an additional $20 'service' fee for grocery deliveries

Some unlucky Australians are about to be charged an additional $20 "service fee" for their grocery deliveries.

Residents of North Stradbroke Island, the Southern Moreton Bay Islands (SMBI) and Coochiemudlo Island have just been informed of the additional fee for Woolworths deliveries via email. The new fee kicks in on February 3.

The news comes after Woolworths confirmed to nine.com.au mainland Australian residents would be charged an additional $2 "service fee" for deliveries scheduled on Sundays and public holidays, even those with Delivery Unlimited subscriptions.

Delivery Unlimited subscribers pay either $15 per month or $119 per year, which entitles them to benefits such as free deliveries on eligible orders, including Same Day or Next Day deliveries over $75.

This saves the usual $15 delivery fee per order for island residents.

Now Delivery Unlimited subscribers are being hit with the additional service fee, and some are not happy about it. Many are considering cancelling their subscriptions. Others are calling for a Woolies boycott.

Some are simply grateful the supermarket continues to deliver to the area at all. Coles doesn't deliver to the area.

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One resident of Macleay Island, just off Brisbane, contacted nine.com.au and shared the email he had received from Woolworths.

"As a valued Woolworths customer and Delivery Unlimited subscriber, you currently enjoy $0 delivery fees on all eligible orders," it read.

"We're getting in touch to let you know of an upcoming change that will apply to deliveries to certain remote island locations."

"To help us with the additional transportation costs of having orders delivered to islands where we do not have a local store, and extra wage costs for team members to pick and pack these orders on certain days, from 3 February 2026, we will introduce:

• a service fee of $20^* on deliveries to island locations within postcode areas 4183 and 4184
• a Sunday/Public Holiday Service Fee of $2^* to online deliveries for these specific days

"These changes ensure we can continue to provide you with a reliable and quality service to remote areas," they added.

Delivery Unlimited subscribers will continue to receive free delivery, according to Woolworths, but will now have to pay a $20 "service fee", and $22 if they place an order on a Sunday or a public holiday.

Those who are not subscribed to Delivery Unlimited will pay the new service fee and a $15 delivery fee, which will total $35, or $37 if that order is for a Sunday or a public holiday.

Woolworths' email to the customer ended by saying: "We understand this change may mean Delivery Unlimited is no longer right for you.

"If you would like to learn more, or prefer to cancel and have the remainder of your subscription refunded, our team is here to help."

The Macleay Island resident, who works in the disability industry, expressed concern for his clients, all of whom will be affected.

"These clients are in wheelchairs and walkers and cannot do a taxi trip to the local Spar (a local independent retailer)," he said.

"People are screaming that we are getting gouged, ripped off and are calling for a boycott of Woolies services."

There are limited grocery options for island residents who have no local Woolworths stores.

North Stradbroke currently has a Foodworks at Pt Lookout and a Spar Express at Dunwich, while Russell Island has an IGA supermarket and Macleay has a Spar.

All the other islands have no close access to a supermarket and either need to travel to collect their supplies or rely on Woolworths deliveries or independent delivery services.

Locals have been sharing their feelings about the additional charges and reduced delivery slots on Macleay Island Community & Events and other local Facebook pages.

"What is the point of subscribing to Woolworths when you change the arrangement. It's a one-sided loyalty program, and Woolworths has let me down with this change," one local resident said.

"Thinking about it, it was almost impossible to get a delivery window, or we'd have to wait a week for delivery, so we'd have to try to get to the mainland to do a shop, and then be limited by how much we can carry on a passenger ferry.

"If we have to come to the mainland to shop, we may as well shop with Coles, Aldi or IGA.

"With the annual profits reported for Woolworths, we know you won't miss the SMBI, Straddle & Coochie population, but we hope your competitors will appreciate the extra custom."

Some expressed fears the supermarket may eventually stop delivering to the islands altogether.

"At the end of the day if Woolies decides its not viable to deliver to the islands any more they can just cease their services just as we can decide to shop elsewhere," one resident commented on Facebook.

"But in saying that there are also a lot of people on the islands for what ever reasons are unable to get to the main land to shop or even to the local store and they will be sadly impacted by the increased rates."

"Maybe Coles will get on board and give them some competition?" another said.

Some locals were more forgiving of the latest changes by Woolworths.

"Seriously, if you choose to live on an island, you must know that you'll have higher costs," one local said on Facebook.

"Not happy they can choose to shop elsewhere just as they choose to live somewhere else," another said.

One suggested locals "build a co operative for the people by the people [and] have a service station attached to it".

"You may find it's to help offset the operational costs involved to send trucks over to the islands on a regular basis, and they're paying drivers 2 hours+ pay for sitting in the truck which equates to lost productivity considering the amount of deliveries they could make in two hours on the mainland," another said.

"So consider it a blessing that they are willing to come over to the islands to deliver for residents. And at the end of the day they're a service not a charity!"

Henry Pike, Federal member for Bowman, has written to Amanda Bardwell, the Chief Executive Officer and Managing Director of Woolworths group, urging the company to reconsider the changes.

He expressed concern for the "higher share of pensioners, people living with disability, and residents on fixed or low incomes" who will be impacted by the changes.

"Island residents already face higher everyday costs," he wrote in a letter seen by nine.com.au.

"I am asking you to urgently reconsider this decision.

"I believe there is scope for Woolworths to take a more tailored approach that recognises the unique circumstances of these communities, without undermining the broader commercial sustainability of your delivery network."

A Woolworths spokesperson has told nine.com.au they "remain committed to serving our customers on Karragarra, Lamb, Macleay, North Stradbroke, Russell, and Coochiemudlo Islands".

"We understand how important it is that these communities continue to have access to grocery delivery, and as the only major supermarket still delivering to them, we need to ensure our service remains viable.

"Residents will be familiar with the additional costs involved in getting many goods onto the islands via sea, and this new service fee will help us continue to cover these costs on an ongoing basis.

"We are introducing a service fee to continue offering the convenience of door-to-door delivery across our island communities and we thank our customers for their understanding."

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