ACCC report finds no cross-subsidy in Australia Post

The Australian Competition and Consumer Commission has issued its ninth report assessing cross-subsidy between the services provided by Australia Post. The ACCC uses information provided by Australia Post in accordance with ACCC record-keeping rules to undertake this work.

Australia Post has a statutory monopoly over the delivery of standard letters, which weigh less than 250g and cost no more than $2.80 to send. All other services provided by Australia Post are open to competition.

“Australia’s Post’s regulatory accounts do not show that it is cross-subsidising its contestable services with revenue from its monopoly services,” ACCC Commissioner Cristina Cifuentes said.

“On the contrary, in 2012-13, Australia Post’s contestable services as a whole were a possible source of subsidy for the monopoly service,” Ms Cifuentes said.

The ACCC was given the power to issue record-keeping rules in 2004 in response to complaints by Australia Post’s competitors that Australia Post was damaging competition by cross-subsidising its contestable services with revenues from its monopoly letter services.