There will be significant pressure on profitability in the 2019/20 financial year due to the continued decline in letters and cautious economic forecasts. Our challenge is to balance the need to continue to service our community who still rely on traditional mail delivery services, with the need to grow in other areas, such as parcel delivery.

To support our ability to keep our post offices open and provide essential services to communities across the country, as well as keep posties delivering five days a week, we have made an application to the Australian Competition and Consumer Commission (ACCC) to increase the cost of a postage stamp in 2019/20. We will continue to protect our most vulnerable customers by holding the price of a concession stamp at 60 cents and keeping Christmas card stamps at 65 cents.

In 2019/20, we move into the second year of our three-year $900 million capital investment program, with the delivery of new equipment, automation and new sites. We will continue to trial new products and seek new growth opportunities, particularly in financial and government services and the delivery of international eCommerce.