Australia Post Salvo for Charities

Australia Post has advised the consumer watchdog, the ACCC, of its intention to increase the price of PrintPost, Adpost and Unaddressed Delivery Service. But there is some good news in the negotiations for registered charities.

Australia Post has told the ACCC it plans a two-stage phase out of the AdPost service with an initial increase of 10% from 1 November 2001 and a further increase of about 9% in November 2002.

As well it proposed a 7% increase to the PrintPost service from November 2001 and an increase to the UDS prices of around 10%.

But don’t panic too soon. The Fundraising Institute of Australia says Australia Post has also advised of its intention to introduce a new mailing category for registered charities which would see mailings sent out at the current AdPost rates.

The original discounted rates were introduced by Australia Post almost twenty five years ago as a way of encouraging the fledgling Direct Market industry. Australia Post argues that today that industry represents $1.5 billion and no longer requires discounts to thrive.

FIA Chief, Wayne Clarke says after discussions, Australia Post is keen to avoid any undue impact on Not for Profits and to encourage the continued use of Direct Mail as a core advertising medium.

Clarke says currently AdPost offers a 20% discount on regular mail where specific requirements are fulfilled such as the inclusion of a reply paid envelope and this is overseen at mail houses by Australia post staff.

He says under the proposal to the ACCC, a reduced rate for registered charities will apply without the content requirements that are currently imposed.

The FIA says it is now a matter of wait and see whether the ACCC approves the Australia Post application.

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