Australia Post price increase a slap in the face for bush businesses

July 28, 2020

Maranoa MP David Littleproud has slammed Australia Post for trying to force bush businesses to pay more to have their products delivered, while city areas benefit from huge discounts.

“Australia Post increasing its parcel postage prices for regional, rural and remote areas was another slap in the face for small businesses in regional areas,” Mr Littleproud said.

“Bush businesses who have already battled to keep their doors open through ongoing drought and Covid-19 are now facing yet another financial hurdle with Australia Post’s price hike on regional parcel postage.

“Australia Post has confirmed parcel prices will increase by 13.49% for regional, rural and remote areas, yet metropolitan areas will have prices slashed by up to 32%, stating lower density of parcels and variable transport costs in regional areas as the key drivers of the price increase.

“Through the drought we have seen a rise in regional, rural and remote businesses taking their products online to diversify their customer base, and those businesses are now paying the price for their success.

“One Maranoa business owner has produced evidence showing their parcel cost increase for regional, rural and remote areas is in fact between 20 to 40%, not the 13.49% Australia post suggests.  He detailed one example where it was cheaper to post a 10kg parcel across Australia from Brisbane to Adelaide – a distance 2004km – than it was post the same parcel down the road 417km from Warwick to Tamworth merely because the ‘capital rate’ is much cheaper compared with the ‘remote rate’.

“This is yet another example of regional businesses being put on the back foot by decisions made in capital cities.

“Not only are these cost increases having a major impact on small businesses in regional areas, but they are also counterintuitive to post-COVID economic recovery.

“I have written to my colleague the Minister for Communications asking him to investigate these Australia Post regional cost increases and the impacts on businesses outside metropolitan areas.

“I will always fight for our bush businesses to ensure they receive fair treatment, no matter where they are located.”