Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

Thank you, Senator Madigan, for your question and for the notice. The decision to which Senator Madigan refers has been taken by the management and board of Australia Post and does reflect the significant structural challenges the company is facing. Australians are sending fewer letters. About one billion fewer letters have been sent in the last five years as Australians increasingly communicate using email, SMS and social networking sites. We are quickly approaching the point—as early as next financial year—where losses from the letters business is so large that it can no longer be subsidised by profits from the parcels business. The job reductions to which Senator Madigan refers will not come into effect immediately. They will be phased in over 12 months. This will affect the size of Australia Post's back office and support functions, including managerial and administrative roles. These are mostly located at Australia Post's corporate headquarters in Melbourne.