Australia Post

• Preliminaries: Cover, Copyright and publication detail, Transmittal letter, Competitive neutrality policy and Contents
• Overview
  • Debt neutrality
  • Tax neutrality
  • Regulatory neutrality
  • Competitive disadvantages
  • Earning a commercial rate of return on assets
  • Other matters
• Findings and recommendations
  • Debt neutrality
  • Tax neutrality
  • Regulatory neutrality
  • Competitive disadvantages
  • Earning a commercial rate of return
  • Other matters
• 1. About the complaint
  • 1.1 Nature of the complaint
  • 1.2 About Australia Post
  • 1.3 Jurisdiction of the AGCNCO
  • 1.4 Scope and conduct of the investigation
  • 1.5 Structure of the report
• 2. Debt neutrality
  • 2.1 Australia Post’s debt portfolio and cost of debt
  • 2.2 How to achieve debt neutrality?
• 3. Tax neutrality
  • 3.1 Australia Post’s exposure to taxes and charges
• 4. Regulatory neutrality
  • 4.1 Asymmetries in reporting and compliance obligations and the inspection of imported and exported goods
  • 4.2 Exemption from part of NSW’s Industrial Relations Act
  • 4.3 Preferential use of public roads
• 5. Competitive disadvantages
  • 5.1 Australia Post’s CSOs and performance standards
  • 5.2 Other competitive disadvantages
• 6. Earning a commercial rate of return
  • 6.1 Australia Post’s rate of return record
  • 6.2 Performance relative to a benchmark rate of return
• 7. Other matters
  • 7.1 Difficulties in getting submissions from key parties
  • 7.2 Australian Government businesses advantaged by state legislation
  • 7.3 Are Government businesses unaware they are subject to competitive neutrality?
  • 7.4 Historically, Australia Post has not met its reporting obligations, but does now
• Abbreviations
• References

On 24 February 2022, the AGCNCO received a formal complaint from the Conference of Asia Pacific Express Carriers (Australia) Limited (CAPEC) against Australia Post. The complaint alleged that Australia Post is not complying with the Australian Government’s competitive neutrality policy, particularly with regard to regulatory neutrality, debt neutrality and cost attribution. The full complaint is available to download:

• Australia Post - Competitive Neutrality Complaint (PDF 2.1 MB)

The AGCNCO has accepted the complaint and has opened an investigation into Australia Post’s compliance with its competitive neutrality obligations. That investigation will also examine whether Australia Post is facing any significant cost disadvantages arising from government ownership that could offset any competitive advantages of government ownership it might enjoy.

On 17 August 2023, the AGCNCO received a supplementary submission from the complainant. That submission expands on aspects of their initial complaint and responds to matters disclosed to the complainant in April 2023 in a joint submission from the Departments of Finance and of Infrastructure, Transport, Regional Development, Communications and the Arts.

• Further CAPEC submission (PDF 440 KB)

On 21 March 2024, the AGCNCO received a second supplementary submission from the complainant. That submission provided an overview of recent developments (such as the Postal Services Modernisation inquiry) and their relevance to the AGCNCO’s investigation.

• Second further CAPEC submission (PDF 229 KB)

On 1 May 2024, Australia Post provided a submission to the AGCNCO in relation to the competitive neutrality complaint made by CAPEC on 24 February 2022 and their supplementary submission on 17 August 2023.

• Australia Post submission (PDF 345 KB)