Australia Post Urges Amazon to Play Fair

Australia Post says it’s looking forward to working with Amazon in Australia but urges Australians to be mindful when it comes to international retailers and the local economy.

On her second day on the job, Australia Post’s new chief executive, Christine Holgate, said that while she hopes Amazon will do well in Australia, she urges it to pay its fair share of taxes here, saying it was the “fair and responsible” thing to do, in an interview with The Australian.

The ex-Blackmores CEO spoke about looking forward to working with the e-commerce behemoth as its local delivery partner, but made mention that Australians should be considerate of the local economy and the contributions that international companies make towards it.

“Australians do need to think about something, which is, there isn’t a country where Amazon has made a large contribution to taxes,” Holgate told The Australian.

Holgate went on to speak about our local supermarket giants, Coles and Woolworths, retailers that analysts predict may likely be some of the first affected as expectations have arisen that Amazon’s initial products to hit Australia will include household goods like groceries and streaming services, which could take a $4 billion dollar bite out of our local retail economy.

“I really want Amazon to be successful in Australia, but I also want Woolworths and Coles to remain successful. Because they are actually employing Australians, put profits back into this country and are paying taxes in this country, and I think that makes a stronger Australia.”

Last month Amazon was ordered by European authorities to repay €250 million worth of taxes to Luxembourg after illegal tax advantages allowed Amazon to evade taxes for almost three-quarters of its profits, which enabled it to pay four times less in taxes than its local competitors. Amazon has been ordered to pay the full tax amount plus interest.

With regards to a partnership between Amazon and Australia Post, the local delivery carrier has been upfront for a while about high-level talks with the US online giant, which has seen a relationship between the two grow.

“Amazon and Australia Post have a very strong relationship,” Holgate told The Australian. “We have an agreement with Amazon already because they are already here working and there is a big opportunity for our parcel business to partner with them.’’

A deeper partnership with Amazon once it launches its full-fledged suite of services in Australia would present Australia Post with a sizeable opportunity to grow its parcel delivery business as its letter delivery volume continues to decrease.

For the year ended 30th June 2017, Australian Post reported its parcel profits increased by 4.8% (before tax) to $299.7 million, with an 11.8% downgrade in letter post.

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7 thoughts on “Australia Post Urges Amazon to Play Fair”

  1. Ken says:

    If Amazon are using Australia Post as their “delivery partner” they are doomed to failure.

    1. Dave says:

      Yes, Amazon will quickly realise they need to engage a partner who is a business asset instead of an unreliable handicap.

    2. pete says:

      isn’t Ken the funny one..the silent vast majority are quite happy with their letter and parcel delivery.

  2. Dave says:

    Amazon may need to rethink their parcel delivery side of the business before they sign up with this partner. The latest stunt pulled by Australia Post means that nothing over 2Kg will be delivered to your address, depending on where you live. This is the advice from a regional PO, in the interests of staff safety. Locals are required to pick up parcels over 2Kg from their local PO. Elderly without transport have to walk to the PO and carry posted items home, or hire a taxi to pick up & deliver their parcels. Full postage costs are applied for this partial service. Great work Aust Post! Just in time for Christmas.

    1. pete says:

      really? which regional PO would that be? don’t bother with spewing unsubstantiated rubbish without providing evidence.

  3. Cass says:

    I’m usually in the silent vast majority and I disagree Pete…..we use australia post on a daily basis and it more often than not takes upward of two weeks to get a parcel to thither coast of Australia! Unacceptable, especially for the large cost involved for postage…….

  4. Pickles says:

    This Pete guy must be an Aus Post employee lol…. I cant wait for the day Australia Post dooms itself to death. Most incompetent, unreliable, rip off company EVER. Bring on the alternatives wheeeee 🙂

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