EXPLANATORY STATEMENT
Issued by authority of the Assistant Minister for Productivity, Competition, Charities and Treasury and Parliamentary Secretary to the Treasurer
Competition and Consumer Act 2010
Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2025
Part VIIA of the Competition and Consumer Act 2010 (the Act) establishes a framework for the selective surveillance of the prices of certain goods or services in markets where competitive pressures are not sufficient to achieve efficient prices and protect consumers.
Subsections 95X(1) and (2) of the Act provide that a Treasury portfolio Minister may declare specified goods or services to be notified goods or services, and declare a person in relation to those goods or services to be a declared person, for the purposes of Part VIIA of the Act.
The purpose of the Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2025 (Declaration) is to remake the Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2015 (former Declaration), before its scheduled sunsetting. The Legislation Act 2003 provides that all legislative instruments, other than exempt instruments, progressively sunset according to the timetable set out in section 50 of the Legislation Act 2003. The former Declaration will be automatically repealed on 1 October 2025. Sunsetting legislative instruments generally cease to have effect after ten years and further action is required to continue their operation, such as remaking the instrument.
The Declaration remakes the former Declaration with revisions to simplify and update language, make minor technical changes and restructure provisions in accordance with modern drafting practices. However, these changes do not change the substantive meaning, operation or enforcement of the provisions. The Declaration will cease to have effect on 31 December 2028 and be repealed on 1 January 2029.
The Act does not specify any conditions that need to be satisfied before the power to make the Declaration may be exercised.
The Treasury undertook targeted consultation on an exposure draft of the Declaration with the Department of Infrastructure, Transport, Regional Development, Communications, Sports and the Arts and the Department of Finance – being the Departments responsible for the broader reforms to modernise Australian postal services, the Australian Competition and Consumer Commission (ACCC) – being the regulator responsible for administering Part VIIA of the Act, and Australia Post.
Feedback received during consultation generally supported the remaking of the Declaration in the short-term, with varying views on when the Declaration should cease to have effect. Extending the arrangements until the end of 2028 is intended to allow the Government additional time to undertake consultation and reassess the arrangements for pricing oversight of Australia Post. This is in light of broader reforms the Government has undertaken to modernise Australia Post, including deregulating priority letter services by removing those services from performance standard requirements and the scope of notified services for the purposes of Part VIIA of the Act.
Public consultation on an exposure draft of the Declaration was not undertaken as it remakes the former Declaration only until the end of 2028.
The Declaration is a legislative instrument for the purposes of the Legislation Act 2003 and is subject to sunsetting and disallowance under that Act. However, the Declaration will be repealed on 1 January 2029 and therefore the sunsetting regime is not relevant.
The Declaration commenced on 1 October 2025.
Details of the Declaration are set out in Attachment A.
A statement of Compatibility with Human Rights is at Attachment B.
ATTACHMENT A
Details of the Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2025
This attachment sets out further details of Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2025 (Declaration). All references are to the Declaration unless otherwise stated.
The Declaration makes improvements to the Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2015 (former Declaration) by simplifying and updating the language, making minor technical changes and restructuring provisions in accordance with modern drafting practices.
Changes of a minor or machinery nature, such as the use of headings and references to ‘section’ rather than ‘clause’ in accordance with modern drafting practice, are generally not specifically identified in this attachment. Substantive changes are identified and explained in this attachment.
Part 1 – Preliminary
Section 1 – Name
This section provides that the name of the instrument is the Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2025.
Section 2 – Commencement
The Declaration commenced on 1 October 2025.
Section 3 – Authority
The Declaration is made under section 95X of the Competition and Consumer Act 2010 (the Act).
Section 4 – Schedules
This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule, and any other item in a Schedule to this instrument has effect according to its terms.
Section 5 – Definitions
This section replicates clause 4 of the former Declaration by setting out definitions of expressions used in the Declaration, as follows:
• ‘Australia Post’ means the Australian Postal Corporation.
• ‘convention’ has the same meaning as in the Australian Postal Corporation Act 1989 (the Australia Post Act).
• ‘the Act’ means the Competition and Consumer Act 2010.
A new definition, ‘special letter service’, has also been added. The effect of this change is discussed below in relation to paragraph 6(2)(c).
To assist readers, an explanatory note in this section alerts readers that expressions have the same meaning in the Declaration as in the Act as in force from time to time, in accordance with paragraph 13(1)(b) of the Legislation Act 2003
Part 2 – Price notifications
Section 6 – Declaration of letter services and declared persons
This section is the main operative provision and remakes clause 5 of the former Declaration, with changes to reflect current drafting practices.
Declarations
For the purposes of the prices surveillance framework in Part VIIA of the Act:
• subsection 6(1) declares the provision of letter services by Australia Post for carriage within Australia of letters to be a notified service; and
• subsection 6(3) declares Australia Post to be a declared person in relation to that notified service.
To assist readers, explanatory notes in subsections 6(1) and (3) refer to subsections 95X(1) and (2) of the Act, respectively, being the provisions that provide the Minister the power to make the declarations.
These declarations have the effect of making Australia Post subject to the price notification requirements in Division 4 of Part VIIA of the Act with respect to these letter services. Broadly, under section 95Z of the Act (about price restrictions), Australia Post must notify the ACCC if it proposes to:
• supply a notified service at an increased price;
• supply a new service that would fall within the scope of a notified service;
• supply a notified service under terms and conditions that are not the same or substantially similar to the previous terms and conditions of that service.
Australia Post may then only supply the service if, among other things, either the ACCC does not object to the supply or the applicable period in relation to notice has ended.
However, subsection 6(2) sets out letter services which are exceptions to the general declaration in subsection 6(1). As a result, Australia Post is not subject to the framework in Part VIIA of the Act with respect to the letter services set out in subsection 6(2).
Exception – letter services not reserved to Australia Post
Paragraph 6(2)(a) provides that letter services that are not reserved to Australia Post under Division 2 of Part 3 of the Australia Post Act (see section 30 of that Act) are outside the scope of the declared notified service. These are letter services that Australia Post does not have the exclusive right to provide.
Exception – incoming overseas mail services
Paragraph 6(2)(b) provides that letter services under an incoming overseas mail service (within the meaning of section 32C of the Australia Post Act) to which a convention applies are outside the scope of the declared notified service.
This has the effect of excluding letters posted overseas and carried by Australia Post in Australia under the terms of an international convention, principally the Universal Postal Convention (UPC). Generally, the postage prices for incoming overseas letters are set by the postal operator in the country of origin, and the payments Australia Post receives for delivering them are set according to terminal dues arrangements in accordance with the UPC.
Exception – special letter services
Paragraph 6(2)(c) provides that ‘special letter services’, as defined in section 5, are outside the scope of the declared notified service. The new definition of ‘special letter service’ captures the letter services which were previously referred to as a ‘special service for which a special charge or additional fee is payable’ and which were outlined in subclause 5(3) of the former Declaration. Including these letter services within a definition, instead of the substantive provisions, and updating the terminology, improves the readability of the Declaration.
A ‘special letter service’ means any of the following:
• A letter service supplied at a rate lower than the ordinary rate, subject to the sender meeting certain requirements including, but not limited to:
– The volume of letters lodged: letter services may be supplied at a lower rate subject to minimum volume requirement. Examples of such services offered by Australia Post include PreSort letters, charity mail, Promo Post and local letters.
– The format of letters lodged: letter services may be supplied at a lower rate subject to specific format requirements for the envelope or the addressing of the envelope. Format requirements are designed to minimise the number of processes, either automated or manual, that letters must undergo at mail or delivery centres. Examples of such services include PreSort letters, charity mail and Promo Post.
– The pre-sorting of letters lodged: letter services may be supplied at a lower rate subject to specific sorting requirements prior to lodgement. Pre-sorting requirements are designed to minimise the number of processes, either automated or manual, that letters must undergo at mail or delivery centres. Examples of such services include PreSort letters, charity mail and Promo Post.
– The content of letters lodged: letter services may be supplied at a lower rate subject to specific requirements in relation to the content of letters. Examples of such services include seasonal greeting cards and Promo Post.
– The sender of letters lodged: letter services may be supplied at a lower rate subject to specific eligibility requirements in relation to the sender. An example of such a service is charity mail.
– The method of payment: letter services may be supplied at a lower rate subject to specific payments arrangements (such as by an Australia Post charge account or postage meter). Examples of such services include Promo Post, metered/imprint mail and reply paid.
– The method of lodgement: letter services may be supplied at a lower rate subject to specific procedures in relation to the lodgement of letters. Examples of such services include Promo Post and metered/imprint mail.
• A letter service supplied at a rate higher than the ordinary rate because Australia Post supplies goods that are integral to the letter service as part of the service including (but not limited to) an envelope, packet, parcel, container, wrapper or card. Examples of such services include prepaid envelopes and prepaid postcards (where the price for the item includes the envelope/card and postage).
• A letter service supplied at a rate higher than the ordinary rate because of additional features being supplied by Australia Post including (but not limited to) priority delivery, reply paid or carriage of non-rectangular shaped articles. Examples of such services include reply paid (where the sender does not have to pay postage) and impact mail (for the carriage of non-rectangular shaped letters).
Part 3 – Application
Section 7 – Cessation and repeal
This section specifies that the Declaration ceases to have effect at the end of 31 December 2028 and is repealed at the start of 1 January 2029.
To assist readers, an explanatory note in this section refers the reader to subsection 95X(4) of the Act, which provides that the Minister must specify the time when the Declaration ceases to have effect. The Declaration will cease to have effect at that time, unless it is revoked earlier.
Schedule 1 – Repeals
Schedule 1 to the Declaration provides for the repeal of the former Declaration as it is due to sunset on 1 October 2025 and is remade by the Declaration.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Competition and Consumer (Price Notifications— Australia Post Letter Services) Declaration 2025
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of the Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2025 (Declaration) is to remake the Competition and Consumer (Price Notifications—Australia Post Letter Services) Declaration 2015 (former Declaration), before its scheduled sunsetting on 1 October 2025.
Part VIIA of the Competition and Consumer Act 2010 (the Act) establishes a framework for the selective surveillance of the prices of certain goods or services in markets where competitive pressures are not sufficient to achieve efficient prices and protect consumers. Subsections 95X(1) and (2) of the Act provide that a Treasury portfolio Minister may declare specified goods or services to be notified goods or services, and declare a person in relation to those goods or services to be a declared person, for the purposes of Part VIIA of the Act.
The Declaration declares certain letter services supplied by Australia Post to be notified services and Australia Post to be a declared person for the purposes of Part VIIA of the Act. This has the effect of making Australia Post subject to the price notification requirements in Division 4 of Part VIIA of the Act with respect to those letter services.
The Declaration remakes the former Declaration with revisions to simplify and update language, make minor technical changes and restructure provisions in accordance with modern drafting practices. These changes do not change the substantive meaning, operation or enforcement of the provisions. The Declaration will cease to have effect on 31 December 2028 and be repealed on 1 January 2029.
Human rights implications
The Declaration does not engage any of the applicable rights or freedoms as the Australian Postal Corporation is not a natural person.
Conclusion
The Declaration is compatible with human rights as it does not raise any human rights issues.