The Federal Communications Minister Malcolm Turnbull has given the OK to Australia Post to implement a two tier letter delivery scheme, and increase the basic cost of posting a letter to $1.

This will increase the cost of a letter from 70 cents currently to $1. However Australia Post still has to seek approval from the ACCC (Australian Competition and Consumer Commission).

The scheme seems designed to encourage the Government and business to transfer their communication to email rather than by sending letters. This will mean even less letters are posted making the letter business even more uneconomical. If you have to send a postie on his bike up every road, having less letters to deliver is not going to improve economies much. Sure you might be able to get a postie to cover a bigger area, but there is a limit to this. Australia Post still has to have the capability to deliver to every address in Australia, and that requires a substantial investment of staff and facilites.

Malcolm Turnbull on the 7:30 report