Senate inquiry warns up to 40% of regional post offices may shut within three years

A Senate inquiry into Australia Post's retail operations has revealed that licensed post offices (LPOs), which account for roughly two-thirds of the national network, could lose almost 40% of their operators within three years. The issue is underscored by the 2022 closure of the Tarpeena LPO, formerly housed in the Pines Hotel, which left residents—especially seniors—without a local hub and raised mental-health concerns.

LPO Group CEO Scott Etherington says such outlets are essential to regional towns, and their loss would diminish community services beyond mere parcel handling. Australia Post attributes the trend to falling foot traffic, higher operating costs and a shortage of workers, noting that 38% of LPO owners are over 60. The postal authority has increased commissions to licensees and is consulting on updating a 30-year-old LPO model, while more than 140 submissions have been made to the inquiry, with the final report slated for October 22.