No cross-subsidy in Australia Post

The Australian Competition and Consumer Commission (ACCC) has issued its sixth report assessing cross-subsidy between the services provided by Australia Post.The ACCC has found that the regulatory accounts do not provide evidence that Australia Post is cross-subsidising its competitive services with revenue from its reserved services.The report analyses Australia Post's 2009-10 regulatory accounts to establish whether its competitive services were being cross-subsidised with revenue from its reserved services.According to the ACCC, Australia Post's logistics services continue to be subsidised, but the source of that subsidy appears to be Australia Post's other competitive services, rather than its reserved services.Reserved services are services for which Australia Post has a statutory monopoly; non‑reserved services are services it provides in competition with other businesses.The ACCC uses information provided by Australia Post in accordance with ACCC record-keeping rules to assess whether Australia Post's competitive services are being cross-subsidised by its monopoly services.The full report can be downloaded as a PDF from the ACCC website.