Changes to prices surveillance arrangements for Australia Post's reserved letter services (Submissions closed)
- Changes to prices surveillance of Australia Post reserved letter prices – Regulation Impact Statement
- Competition and Consumer Act 2010 – Price Notification Declaration (Australia Post Letter Services) (No.2) 2011
- Prices surveillance of Australia Post reserved letter services discussion paper (PDF, 846 KB)
- Prices surveillance of Australia Post reserved letter services discussion paper (RTF, 524 KB)
Australia Post has the exclusive right to collect, carry and deliver letters within Australia that (subject to exceptions) weigh not more than 250 grams. These statutory monopoly services, along with the right to issue postage stamps, are termed Australia Post's 'reserved services'.
Previously, the Australia Competition and Consumer Commission (ACCC) scrutinised:
- increases to the prices of reserved letter services
- prices for the introduction of new reserved letter services
- substantial changes to the existing terms and conditions of reserved letter services.
Following public consultation, the Government has decided to focus ACCC prices surveillance of Australia Post on ordinary letter services, such as the 60c basic postage rate for standard letters. Prices surveillance will be discontinued for other reserved letter services, such as bulk mail.
Changes in technology and consumer behaviour are driving a global decline in letter volumes. Electronic communications are successfully competing with physical letters where post had a traditional monopoly. This change to prices surveillance arrangements provides Australia Post with greater flexibility to respond quickly to changing market needs and opportunities and improve its viability.
The ACCC retains its role in scrutinising Australia Post's ordinary postage rates, such as the 60 cent basic postage rate for standard letters. These rates will continue to act as a price ceiling for discount mail rates.
The department sought public comments on the possible changing of ACCC prices surveillance arrangements and prepared the following discussion paper on the issue.
- Discussion paper - Prices surveillance of Australia Posts reserved letter services (PDF, 843KB)
- Discussion paper - Prices surveillance of Australia Posts reserved letter services (RTF, 521KB)
The department received the following submissions.
- Australia Post
- Australian Direct Marketing Association
- Major Mail Users of Australia
- Post Office Agents Association Limited
- Printing Industries Association of Australia
- Printing Industry Association supplementary material
Informed by these submissions, the department prepared the following Regulation Impact Statement.