Australia Post history

Australia Post's first postmaster, Isaac Nichols, was appointed in 1809. He worked from his home in Australia's first post office in Circular Quay, Sydney. This was followed in 1828 with Australia's first postman commencing deliveries in Sydney. The mail was transported on horseback or coach from Sydney to areas including Penrith, Parramatta, Liverpool, Windsor, Campbelltown, Newcastle and Bathurst.

It was another three years before Sydney saw its first street posting boxes and postmen were issued with a uniform, red coat and black top hat.

Australia designed the world's first pictorial postage stamp, 'Sydney Views', in 1849. This was nine years after Great Britain became the first nation to officially issue a pre-paid stamp, the famous 'Penny Black'.

The Federation of the Australian colonies in 1901 had a profound effect on postal services. Federation ended the era of the Colonial Post Office and paved the way for a nationally integrated system of mail collection and delivery. The Postmaster General's Department (PMG) was established and control of posts and telegraphs passed to the Commonwealth of Australia.

In 1975 the PMG split into two forming the Australian Postal Commission (trading as Australia Post) and the Australian Telecommunications Commission (trading as Telecom Australia, now Telstra). The Australian Postal Commission was a statutory body and was required to operate without direct budget funding and to be financially self-sufficient.

When the Australian Postal Commission was established in 1975, it retained the qualified letter monopoly of its predecessor—the carriage of letters weighing up to and including 500 grams. This legislated monopoly is referred to as the reserved service. In 1982, this monopoly was reviewed and the government of the day decided to maintain the same weight restriction to competition but to allow competition in the carriage of letters, charged at least 10 times the standard letter rate.

In 1988–89, the Australian Postal Commission was converted to the Australian Postal Corporation (referred to as Australia Post). The new entity operated, and continues to operate, under a corporate model, as a statutory corporation under the Australian Postal Corporation Act 1989 (the APC Act), with the Australian Government as the sole shareholder.

Under the APC Act Australia Post's principal function is to supply postal services within Australia and between Australia and places outside Australia. A subsidiary function is to carry on any business or activity relating to postal services. The APC Act requires Australia Post to perform its functions in a commercial manner. Australia Post is not funded by the Australian Government and meets all of its own costs. It is required to pay all government taxes including state, territory and local taxes. It is also required to pay a dividend to the Australian Government.

The Corporation is responsible for its day-to-day operations under the direction of the Board of Directors, which has responsibility for Australia Post's overall performance. In particular the Board decides the objectives, strategies and policies to be followed by Australia Post and ensures that it performs its functions in a proper, efficient and economic manner.

In 1994 the weight and price thresholds to competition were reduced from 500 grams to 250 grams and from 10 times the standard letter rate to four times. In addition, the list of exceptions to the reserved service was expanded to include such things as:

• the operation of document exchange networks;
• the carriage of letters by a third party from one location to another location of the same organisation;
• the carriage of directed advertising material, whether or not it is enclosed; and
• the carriage of outgoing international mail.

In 1997 the National Competition Council conducted a review of the APC Act and was specifically requested to provide advice on practical courses of action to improve competition, efficiency and consumer welfare in the postal services sector.

New performance standards were introduced in 1998. These include standards relating to the number and distribution of retail outlets and street posting boxes. The standards also provide minimum standards for the frequency, speed and accuracy of mail delivery.

In 2001, as part of the response to foot and mouth disease and other quarantine risks, Australia Post was required to increase the level of quarantine inspection and maintain 100 per cent screening of incoming international mail.

Since December 2002, in response to the international emphasis on improved security, customers have been required to provide proof of identity when lodging overseas mail.

In January 2003 the standard letter rate increased from 45 cents to 50 cents. This was the first increase in 10 years and is still one of the lowest in the developed world.

In 2004, the Postal Services Legislation Amendment Act 2004 received assent. It contained amendments to address regulatory and consumer issues, including enabling the Australian Competition and Consumer Commission to make record-keeping rules for Australia Post to clearly demonstrate how it maintains separation between the reserved and competing services.

• Document ID: 31510 |
• Last modified: 5 February 2008, 7:24pm