ANAO releases report into Australia Post's CSOs

The Australian National Audit Office (ANAO) recently released its report into how efficiently Australia Post is meeting its Community Service Obligations (CSOs).Australia Post’s CSOs include providing a domestic letter service at a single uniform rate, and meeting prescribed Performance Standards. The Performance Standards include maintaining a network of 4000 retail outlets (of which 2500 must be in rural and remote Australia), maintaining a network of at least 10,000 street posting boxes, and 94% on-time delivery of standard letters.POAAL made a submission to the ANAO, addressing the topics being investigated and highlighting the role Licensees and Contractors play in helping Australia Post meet its CSOs.The ANAO found that Australia Post has developed strategies to improve the efficiency with which it meets its obligations. It has not, however, improved its efficiency in its letters business as quickly as its international counterparts.Australia Post’s strategies to improve its efficiency have focussed on process optimisation and automation along with labour force flexibility, all with the objective of improving labour productivity.The current regulations underpinning the CSOs have a ‘sunsetting’ date of April 2019. This represents an opportunity for Finance and Communications to re-evaluate the CSOs, and Australia Post’s role in delivering them, into the future.You can read the ANAO’s findings and Australia Post’s responses on the ANAO website.