ACCC finds no cross-subsidy in Australia Post

The Australian Competition and Consumer Commission has this week issued its eighth report assessing cross-subsidy between the services provided by Australia Post. The report found that the reserved service (60c stamp) is not subsidising any part of Australia Post’s business.In 2004 the ACCC was given the power to issue record-keeping rules in response to complaints by Australia Post’s competitors that Australia Post was cross-subsidising its competitive services with revenues from its monopoly services.“The regulatory accounts do not show that Australia Post is cross-subsidising its competitive services with revenue from its monopoly services. On the contrary, in 2011-12, Australia Post’s competitive services as a whole were a possible source of subsidy for the monopoly service,” ACCC Commissioner Joe Dimasi said.The full report can be downloaded from the ACCC website.