2004-05 Annual Report - Australia Post

Australia Post Annual Report 2004/05
MORE
THAN
YOU
THINK

INSIDE
THIS
REPORT
Report of operations
Performance against targets 02
Highlights and more 03
About our business 04
Chairman’s report 06
Managing director’s report 08
Financial results 10
Our year in summary 12
Core business
Case studies:
More than a business partnership 14
More than delivering bank statements 16
Letters 18
Retail & agency services 24
Parcels & logistics 30
Corporate sustainability
Case studies:
More than a champion worker 36
More than an environmental solution 38
People 40
Community 44
Environment 48
Economy 50
Corporate governance 52
Organisational structure 56
Board of Directors 58
Financial and statutory reports
Understanding our statements 60
Financial and statutory reports contents 61
Financial statements 62
Community service obligations 104
Statutory reports 110
Australia Post – the statistics 116
Index 122
Stamp gallery Inside back cover

Sydney Parcel Facility, Chullora, NSW.

“An organisation the size of Australia Post is
not usually associated with entrepreneurship.
Australia Post is now one of Australia’s biggest
logistics businesses and, in terms of the
number of stores, is the country’s biggest
retailer. It is one of the most technologically
advanced companies in Australia.”
– Business Review Weekly, 5 May 2005
Australia Post Annual Report 2004/05 Report of Operations Section

| 2 |
PERFORMANCE
AGAINST
TARGETS
° Revenue base of $4.33 billion.
° Profit before tax of $495 million.
° Return on average operating
° Return on equity of 23.9 per cent.
° Deliver 94 per cent of domestic
° Maintain 4,000 outlets (including
° Maintain 10,000 street posting boxes.
° Reduce the lost-time injury
° Productivity improvement of
Target Performance
Financial
assets of 16.2 per cent.
Service
letters early or on time.
2,500 in rural and remote areas).
People
frequency rate (LTIFR) to 9.
3.7 per cent.
° We earned revenue of $4.32 billion.
° We made a profit of $524.5 million.
° We achieved a return on average
° Our return on equity was 24 per cent.
° We delivered 94.9 per cent of
° We have 4,474 outlets (including 2,574
° We have 15,425 street posting boxes.
° We achieved a record low of 9.6
° We achieved productivity gains
operating assets of 17.1 per cent.
domestic letters early or on time.
in rural and remote areas).
lost-time injuries per million work
hours (10 last year).
of 2.6 per cent.

HIGHLIGHTS
° We earned a record net profit of $374.9
million (up from $371.1 million last year).
° We handled 5.36 billion mail items –
a 1.0 per cent increase on last year.
° We served an average of 1.1 million
customers in Post outlets every
business day.
° We delivered 94.9 per cent of domestic
letters (and 98.2 per cent of bulk letters)
on time or early.
AND MORE
° We delivered to all 9.87 million
° We processed 201 million agency
° We donated $250,000 to CARE
° In 2004, we reduced our greenhouse
addresses in Australia.
bill-payment and banking transactions.
Australia’s tsunami appeal and
accepted $1.46 million (via our
retail network) in public donations
to the appeal.
gas emissions by 17,150 tonnes
of CO2 equivalent, against
projected emissions.
° We launched Express Courier
International – a reliable, cost-
effective international courier service.
° We acquired two companies –
SnapX and SWADS – that add to
our capacity and expertise in courier
and logistics services.
“They are responsible for the
most precious cargo of all –
the hopes and wishes of
thousands of Australian children.”
– Daily Telegraph, 4 December 2004
(Over 120,000 letters to Santa are received by Australia Post each year – and kids who included a name and
address on the back of their envelope received a reply from Santa, with Post’s compliments. See p. 46.)
° We worked closely with postal partners
° We conducted 1.03 million
° We designed, printed and distributed
° Labour productivity improved by
° We maintained our basic postage rate
in the Asia–Pacific region to develop
enhanced international parcels and
logistics services.
passport interviews.
stamps within 48 hours to celebrate
each Australian gold medal victory at
the Athens Olympic Games.
2.6 per cent, bringing cumulative
improvement over the past five
years to 17.0 per cent.
at 50 cents, one of the lowest in the
developed world. (See table on p. 20.)
Australia Post Annual Report 2004/05 Report of Operations Performance, highlights and more
| 3 |
| 3 |

| 4 |
ABOUT
OUR BUSINESS
With our long history and nationwide
presence, we are quite literally a part
of the Australian landscape. Nearly all
Australians come into contact with us
at their letterbox or over the counter of
their local Post outlet. But our business
is about much more than that …
OUR BUSINESS
Australia Post is a government
business enterprise (GBE)
operating under the Australian
Postal Corporation Act 1989.
We are a self-funding business
that uses its assets and resources
in order to earn profits, which
can be reinvested in the business
or returned as dividends to our
shareholder, the Commonwealth
Government.
Our people at Northgate Mail Centre, Queensland.
Under our community service
obligations, we are also
committed to providing an
accessible, affordable and reliable
letter service for all Australians,
wherever they reside.
We have 34,804 full-time and
part-time staff; we operate
4,474 post offices; we serve
1.1 million customers in our
Post outlets every business
day; and we deliver mail to 9.87
million Australian addresses.
OUR VALUES
Our corporate values provide the
foundation for the Code of Ethics
and guide the thinking, decisions
and actions of staff.
Our values are:
° being committed
to customers
° recognising and developing
the capability of our people
° sharing business
understanding
° ensuring participation
and involvement
° maintaining a safe and
healthy work environment
° being open and fair
° setting high standards
° being accountable
° acknowledging achievement
° encouraging flexibility
and adaptiveness.
For a copy of our Code of Ethics,
see our website: auspost.com.au

OUR HISTORY
Our origins can be traced back
to 1809, when former convict
Isaac Nichols was appointed
as the nation’s first postmaster
and opened a post office in his
home in George Street, Sydney.
Our formal commercial origins
lie in the first postal act of 1825,
which enabled the New South
Wales governor to fix postage
rates and appoint postmasters
outside of Sydney.
With the Federation of Australian
colonies in 1901, a national
Postmaster General’s Department
(the PMG) was established, with
responsibility for the nation’s mail
and telephone services.
In 1975, the Federal Government
separated responsibility for
telephone and mail services
by dividing the PMG into the
Australian Postal Commission
(Australia Post) and the Australian
Telecommunications Commission
(formerly Telecom, now Telstra).
Under the Australian Postal
Corporation Act 1989, we
became a GBE with a board
of directors and a charter
to operate commercially
while meeting a number of
community service obligations.
Over the past 15 years, we have
transformed our customer service
culture and introduced a series
of major change programs that
have resulted in the overhaul
of our retail network and the
mechanisation of mail processing.
OUR PRODUCTS
AND SERVICES
We operate in three core
business areas:
1 Letters
2 Retail and agency services
3 Parcels and logistics.
In letters, we offer a range
of collection, processing and
distribution services for the
whole Australian community,
and between Australia and
overseas. We also offer bulk
mail services for businesses and
organisations, including PreSort
Letters, Print Post (publications),
Unaddressed Mail, Impact Mail,
Reply Paid, Clean Mail and
Charity Mail. Our letters-related
services include mail marketing
support; mailroom and document
workflow management (through
our subsidiary company Decipha);
and mail printing and preparation
(EDI Post and Easy Mail).
Our retail outlets are primarily
a destination for mail services,
packaging and philatelic
products, and a range of agencybased
services. We also sell
complementary products through
the retail network, including
communications products (prepaid
mobile telephony), stationery,
greeting cards and gifts. The
nationwide spread of our network
and public trust in our brand have
enabled us to develop a range of
third-party agency services that
connect customers, businesses
and government bodies. These
agency services include bill
payment, banking, travellers’
cheques, money transfers and
personal identification services.
We collect, process and deliver
parcels to the whole Australian
community and between Australia
and overseas. Our parcel services
include Parcel Post, Express
Post, Post eParcel and Express
Courier International. We also
offer a national courier service,
Messenger Post Couriers, which
operates in all state capitals and
Canberra. We are leveraging our
core competencies in parcels
by offering business customers
integrated logistics and fulfilment
services. Over recent years,
we have developed our logistics
and distribution capacity through
joint ventures and acquisitions.
We are a joint-venture partner
(with Qantas) in Star Track Express
and Australian air Express; and we
own Post Fulfilment Online and
State Warehouse and Distribution
Services as subsidiary businesses.
OUR STRATEGY
Our overarching business strategy
is to defend and extend the three
core business areas (letters, retail
and agency services, and parcels
and logistics). The strategy
encourages us to capitalise
on our existing strengths and
establish leadership positions
in substitute markets or activities
with growth potential.
For each of the three core
businesses, there is an underlying
strategy guiding our operations
and activities. The three strategies
are:
1 Make the most of letters:
Position cost-effective, paperbased
products and services
as a vital part of contemporary
communication.
2 Keep Post accessible:
Use our retail products and
services to support outlet
viability by strengthening our
position as a destination for
agency services, philatelic
products and packaging.
3 Ensure parcels are our future:
Be the essential partner for
domestic parcels and logistics
services and a regional
facilitator for Australian
businesses.
Australia Post Annual Report 2004/05 Report of Operations
About our business
| | 5 5 | |

REPORT
| 6 |
Australia Post Annual Report 2004/05 Report of Operations CHAIRMAN’S
Our major corporate challenge is to balance our
twin objectives of delivering a quality community
service for all Australians while earning a profit
that can be reinvested in the business. This year’s
results again prove that these two objectives can
be achieved simultaneously.
At Australia Post, we have a
distinguished history of serving
the Australian community in
three core business activities:
° delivering letters
° operating retail
postal outlets
° handling parcels.
Our overarching strategy is to
defend our position in these
core business activities while
seizing on new opportunities to
extend into complementary or
substitute areas. This strategy
requires continual adaptation
of our traditional services
so that they remain fresh,
relevant and highly valued by
contemporary consumers.
Letters
The effect of electronic
substitution on the letters
business is being felt globally,
with many of the world’s leading
postal enterprises reporting
declining letter volumes over
recent years. In comparison,
Australian letter volumes are
not declining, but they are also
not growing at the same pace
as the wider economy (as had
been the trend until five years
ago). Since 2000, our domestic
letter volumes have increased
only marginally, averaging about
0.4 per cent per year.
With our letter prices currently
frozen and our costs rising
with the addition of around
200,000 new addresses each
year, growth in letter volumes
is going to be the crucial
element determining our future

profitability in the letters business.
This presents a real challenge for
our business. The good news is
that research continues to show
that consumers prefer to receive
information from businesses in
writing – and on paper. Whether
it be transactional information
or promotional messages, this
consumer preference for paper
gives us confidence that letters
will be a highly valued form of
messaging well into the future.
Our strategy in letters involves
repositioning mail as the most
effective way for businesses
to communicate with (and sell
to) their customers. We have
been actively doing this for
several years now by engaging
the advertising industry and
developing new products,
services and tools to suit the
needs of business. A significant
initiative this year was the launch
of our Impact Mail service,
which gives advertisers almost
complete freedom and flexibility
in the design of their promotional
mail campaigns (see p. 22).
Our challenge is to demonstrate
that promotional mail is highly
effective and easy to use, so that
businesses consistently include
letters in their advertising and
customer relationship campaigns.
Retail and agency services
As the nation’s largest physical
retail network, our 4,474
Post outlets are an essential
commercial and social hub for
communities across Australia.
Our research shows that our
customers are satisfied with
their experience in Post outlets
because they get helpful, efficient
service, in a convenient location,
from a real person.
The geographic spread of our
outlets combined with consumer
trust in our brand are terrific
assets that have enabled us
to position the network as
a community-based agency
where Australians can transact
with banks, business and
government. While we are known
as a destination for agency-based
banking and bill-payment services,
we also enhanced our reputation
this year as a destination for 100point
identity checks, international
money transfers and travellers’
cheques (see p. 27). Over the
coming year, we will re-brand
giroPost as Bank@Post, and offer
people living in rural and remote
areas of Australia even greater
access to banking services. We
will also broaden the range of
agency services we offer and
build recognition of these services
by marketing our retail network as
the nation’s trusted intermediary.
We know that 90 per cent of our
retail customers come to our
outlets because they want to do
one of four things: lodge mail,
buy packaging, buy philatelic
products or use our agency
services. Our ongoing challenge
in retail is to refine the mix of
products and agency services
in our outlets to ensure that
they complement our core offer,
reflect local customer demand
and maximise our return.
Parcels and logistics
Our most significant aspiration is
to develop Australia Post into a
major parcels distribution provider
for Australian business. In
particular, we see strong growth
opportunities as a provider of
reliable, competitively priced
parcel services between big
business and small business.
This year, many of our initiatives
in parcels and logistics were
aimed at improving our systems,
expertise and flexibility so that
more business customers will
entrust a greater share of their
supply chain to us. For example,
we developed more sophisticated
tracking and reporting systems
to improve our handling of parcel
consignments. We know that our
business customers prefer to deal
with one distribution provider,
which is why we now offer a suite
of parcel handling and distribution
services, including express,
logistics, fulfilment and courier
services (see p. 30–35).
We also recognise that many
of our business customers are
increasingly trading in the Asia–
Pacific region, so this year we
laid the foundation for a logistics
presence in the region (through
our alliance with China Post).
We also launched an exciting
new international express service,
Express Courier International,
which is founded on guaranteed
end-to-end international delivery
standards with our long-standing
postal partners in the region
(see p. 32).
Thank you
This year’s results show what
can be achieved with a wellarticulated
business strategy,
strong leadership and staff
who are committed to the
success of our business. I would
particularly like to acknowledge
the outstanding leadership of
Managing Director Graeme John,
who in 12 years at the helm of
our business has brought a sharp
focus to improving our customer
service standards and financial
returns. I would also like to thank
my fellow board members, as
well as the management team
and staff, for their contribution
to this year’s great results.
Linda B Nicholls
Chairman
Australia Post Annual Report 2004/05 Report of Operations Chairman’s report
| 7 |

DIRECTOR’S
REPORT
| 8 |
Australia Post Annual Report 2004/05 Report of Operations MANAGING
Financial results
I am enormously pleased that
we managed to increase our
profit again this year while
also meeting (or exceeding)
all of our community service
obligations. Our pre-tax profit
increased marginally by 0.7
per cent to a new record
of $524.5 million. The total
revenue we earned also
reached a new record,
increasing by 3.9 per cent
to $4.32 billion.
Close analysis of the results in
the three core business areas
shows why we are so actively
expanding our presence in the
parcels and logistics market.
Our profit from the letters
business declined (by $56.9
million) this year as a result of
rising costs, stability in price
and only marginal letter volume
growth. However, the lower
profit in letters was partly offset
by a $41.4 million increase in
the profit earned by our parcels
and logistics business. Retail
and agency services also
made a welcome contribution
to this year’s record profit
result, improving their return
by $3.4 million on last year’s
result. In other business
areas, including property, we
earned $15.5 million more
than last year.
Adding value to letters
Our letters business is about
much more than sorting
letters and delivering them
to Australia’s 9.87 million
addresses. Under our
community service obligations,

we are committed to providing
an accessible, reliable and
nationwide letters service,
including the delivery of a letter
from anywhere, to anywhere,
in Australia for just 50 cents.
I’m proud to say that this year
we met all of the regulated
performance standards relating
to our community service
obligations and we exceeded our
main service performance target
by delivering 94.9 per cent of
domestic letters on time or early.
I can confidently report that
Australians still enjoy one of
the most efficient, reliable and
lowest cost letters services in
the world. While many of the
world’s leading postal businesses
have reported declining letter
volumes over recent years,
we recorded domestic letter
volume growth of 1.2 per cent
in 2004–05. Significantly, nearly
all of this growth is coming from
the promotional letters category
(or direct mail). This is a pleasing
result, given all the work we are
doing to develop new services
and resources for the advertising
and direct marketing industries
(see p. 22). This year, we made
direct mail more flexible by
launching Impact Mail and we
also developed an innovative
letters offering that will be
launched in early 2006 that is
specifically designed to help
companies acquire customers.
Beyond our mail marketing
initiatives, we are adding value
to letters in a number of other
ways. In August, we launched
the Bulk Mail Partner program
to improve the efficiency of
bulk mail processing for major
customers (see p. 21). Our
subsidiary company Decipha is
providing outsourced mailroom
management and document data
capture services for some of
Australia’s largest corporations
(see p. 22).
And on the day after the end of
the financial year, we acquired
PrintSoft, a developer of specialist
software products, including
a comprehensive hybrid mail
capability that can be directed
from a desktop PC. These
products enable everything from
large-scale document preparation
through to mail production.
PrintSoft’s products are used by
companies worldwide to reduce
the cost and time involved in bulk
letter production.
Delivering for business
An important focus this year was
developing new and better ways
of serving Australian businesses.
In letters, the benefits of our
new mail-sorting technology
are clearly evident in the fact
that we delivered a record high
98.2 per cent of bulk-lodged,
barcoded letters on time or
early. In the retail network, we
expanded our range of agencybased
services and continued to
connect Australian businesses
and government bodies with
customers by processing over
200 million agency-based banking
and bill-payment transactions.
Many of our initiatives in parcels
and logistics are also aimed at
developing a more complete
distribution service for our
business customers. In February
we announced the formation of
our joint-venture international
logistics business, Sai Cheng
Logistics, in partnership with
China Post. In March we acquired
two companies – SnapX Couriers
and State Warehouse and
Distribution Services (SWADS)
– which add significant capacity
to our national courier and
logistics operations.
Also in March, we launched
Express Courier International (ECI)
– a global delivery service that is
similar to our Express Post service
but for the international express
market. ECI is proving to be very
popular with small and mediumsized
businesses because it
offers reliable delivery (usually
within four business days) to 190
countries and territories – at a very
competitive price (see p. 32).
Engaging our employees
Staff support for our major
change programs has been the
critical factor in the transformation
of our business over the past
decade. That’s why I regard
the October vote in favour of
our sixth enterprise bargaining
agreement (EBA6) as a landmark
achievement of this year. The
agreement provides a framework
for further business change, as
well as clear guidelines for staff
consultation through the change
management process. More than
19,000 staff participated in the
ballot, and 78 per cent of them
voted “Yes” to EBA6. For staff, the
agreement delivers pay rises that
are higher than projected inflation,
as well as performance-related
bonus payments that are linked
to meeting our on-time delivery
performance target.
Thank you
Every business day, we are
delivering mail to almost 10
million addresses and we are
serving over a million customers
in our retail outlets. Managing
this enormous load requires hard
work, persistence and teamwork
on the part of all of our staff. I’d
again like to thank our employees
for their loyalty and commitment
to Australia Post. I also want to
thank our licensees, contractors,
customers, suppliers and business
partners for their ongoing support
of our great business.
Graeme T John AO
Managing Director
Australia Post Annual Report 2004/05 Report of Operations
Managing director’s report
| 9 |

| 10 |
FINANCIAL
RESULTS
Five-year trends
2001 2002 2003 2004 2005
Revenue ($m) 3,766.4 3,806.6 3,971.9 4,161.1 4,323.5
Profit before tax ($m) 402.1 407.2 462.0 521.1 524.5
Profit after income tax ($m) 274.5 297.0 330.8 371.1 374.9
Return on revenue (%) 10.7 10.7 11.6 12.5 12.1
Return on average operating assets (%) 15.7 15.7 17.7 18.7 17.1
Debt to debt plus equity 32.2 31.7 28.7 25.4 22.6
Dividends payable ($m) 163.9 175.1 200.2 220.9 286.2
Interest cover 13.1 15.3 16.7 17.2 17.2
Cumulative labour productivity improvement (%) 4.0 6.3 10.3 14.1 17.0
Mail volumes (million) 5,258.4 5,281.2 5,261.7 5,307.5 5,363.1

Performance
Australia Post delivered another
year of record profits in 2004–05.
This result highlights the excellent
performance of the corporation
over recent years as we have
consolidated revenue growth and
continued to focus on reducing
costs through efficiency and
process improvements. The three
core business areas – letters,
retail and agency services,
and parcels and logistics – all
contributed to the corporation’s
revenue growth of $162.4 million.
Revenue growth in the letters
portfolio was 1.2 per cent, a good
result given the modest growth in
domestic letters volume and the
price cap that currently applies to
the basic postage rate. Our focus
on enhancing the value of the
mail supply chain and promoting
the value of paper-based products
has assisted the positive result
within this portfolio.
Increased revenue from parcels
and logistics (of 9.7 per cent) was
again the result of strong growth
from our traditional customers
(deliveries from consumer to
consumer and from business to
consumer) as well as encouraging
growth in the business to
business (B2B) logistics and
distribution segment.
The increase in revenue from the
retail and agency services portfolio
(of 5.1 per cent) can be attributed
to the continued alignment of
retail products to meet customer
demand, combined with a
more targeted marketing and
promotional strategy.
Return on revenue declined
slightly (to 12.1 per cent) from
last year’s record high (of 12.5
per cent) but still remains strong.
This reflects the continuing
productivity improvements
being generated throughout
the network, as well as our
continued focus on reducing
costs. Productivity improvement
of 2.6 per cent this year maintains
the solid gains of recent years
with the five-year cumulative
improvement being four times
the national average. Trading
expenditure increased by 4.2 per
cent, a good result given that
enterprise bargaining agreement
pay increases amounted to
4.7 per cent during the year.
Post’s record before-tax profit
of $524.5 million ensures that
the corporation will continue its
high level of dividend returns
to the Commonwealth. Based
on a revised target dividend
distribution of 75 per cent of
the corporation’s after-tax profit,
dividends payable from the
2004–05 result are expected
to total $286.2 million.
Strategic acquisitions
In 2004–05, Post continued its
growth in the parcels and logistics
market by acquiring third-party
logistics company JR Haulage
Pty Ltd (trading as State
Warehouse and Distribution
Services (SWADS)), as well as
the national courier company
SnapX. SWADS was acquired
to complement our logistics
and warehousing offering to
the B2B market, while SnapX was
acquired to enhance Messenger
Post Couriers’ presence in the
Canberra and Sydney markets.
Capital expenditure
Capital expenditure for the year
(not including the acquisition
of SWADS or SnapX) was
$159.4 million. Investment
focussed on sustaining our
existing core operations with
a significant amount spent to
replace plant and equipment,
including vehicles, unit loading
devices and retail peripherals.
Expenditure on the restructuring
of the large-letter and parcels
networks was also finalised
during the year.
Cash management
Post was able to fund the
acquisition of SWADS and SnapX
from available cash reserves,
resulting in minimal impact on
the corporation’s key balance
sheet and cash flow indicators.
Debt to debt plus equity again
improved during the year (gearing
dropped to 22.6) and interest
cover remains constant at 17.2.
The corporation’s $530 million
long-term debt is now at floating
interest rates as the remaining
$100 million floating to fixed
swaps matured on 25 June 2005.
Financial reporting standards
The corporation is in the process
of transferring its accounting
policies and financial reporting
from a combination of the Finance
Ministers Orders (FMOs) and
Australian Accounting Standards
(AGAAP) to a combination of
FMOs and Australian equivalents
of International Financial
Reporting Standards (A-IFRS).
Included in the notes to the
accounts are the known impacts
of the implementation of
A-IFRS on the opening balance
sheet at 1 July 2004. We are in
the process of completing the
detailed A-IFRS impacts for the
year ended 30 June 2005.
Outlook
The immediate outlook for
Australia Post remains positive.
Domestic letter volume growth
remains modest but is higher than
for most other postal authorities.
Our strategy to position costeffective,
paper-based products
and services as a vital part of
contemporary communication
will be important to future growth
in letters. We have strategies in
place that will encourage stronger
growth from retail and agency
services as well as parcels and
logistics. We will also pursue
further productivity improvements
and build our capability to support
future growth opportunities.
Australia Post Annual Report 2004/05 Report of Operations
Financial results
| 11 |

| 12 |
OUR YEAR
IN SUMMARY
This year’s numbers tell the story of a massive,
daily logistical task. Here is a summary of our
workload and the resources required to do the job.
Key business results
Revenue
Results and highlights
Outlook
° Total revenue from letters
° Revenue from mailroom
° Domestic letter volumes
° Promotional letter volumes
° 94.9 per cent on-time delivery
° A record 98.2 per cent
° EDI Post, Geospend and
° Letter volumes are expected
° The return on letters is
° We will launch new letters
Letters
(pages 18–23)
increased by 1.2 per cent.
services increased by
23.2 per cent.
increased 1.2 per cent.
increased by 5 per cent.
of domestic letters.
of barcoded, bulk-lodged
letters delivered on time
or early.
Decipha all had record results.
to increase marginally, mainly
as a result of growth in the
promotional segment.
expected to decrease
as rising costs outstrip
revenue growth.
services designed to
help companies acquire
customers.
° Total revenue from retail
° Retail product revenue
° Agency services revenue
° Maintained Australia’s
° Served an average of
° Processed 170 million
° Printed and distributed
° Overall retail revenue is
° We will optimise our supply
° We will broaden and
Retail &
agency
services
(pages 24–29)
and agency services
increased by 5.1 per cent.
increased 8.0 per cent.
increased 3.5 per cent.
largest retail network
with 4,474 Post outlets
(including 2,574 in rural
and remote areas).
1.1 million customers
every business day.
Postbillpay transactions
and 31 million giroPost
banking transactions.
stamps within 48 hours
to celebrate Australian
gold medallists at the
Athens Olympics.
forecast to increase.
chain and improve the
stock levels in retail outlets.
deepen the range of
agency services and look
for new opportunities in
personal identification
services.
° Total parcels and logistics
° Post Logistics revenue
° Messenger Post Couriers
° Domestic parcel volumes
° Launched Express Courier
° Our international parcel
° Acquired two companies
° Forecast growth in
° Improved parcel tracking,
° New international gateway
° We will focus on the closer
Parcels &
logistics
(pages 30–35)
revenue up 9.7 per cent.
increased 24.8 per cent.
revenue up by 40.1 per cent.
increased 3.4 per cent.
International (ECI), a reliable,
cost-effective international
courier service.
volumes and delivery
performance improved.
– SnapX and SWADS – that
add capacity and expertise
to our courier and logistics
businesses.
domestic and international
parcel volumes.
proof of delivery and
consignment services will
be offered to customers.
facilities will become
operational in Melbourne
and Sydney.
integration of our suite of
logistics and distribution
services.

Handling the workload
People
(pages 40–43)
° Total employees 34,804
(comprising 25,851 full-time and 8,953 part-time)
° Mail contracts 5,421
° Licensees 2,979
Mail network
(pages 18–23, 30–35)
° Handled 5.36 billion mail articles
(letters, parcels and international items) this year, at
an average of 21.5 million items per business day
° Reached 9.87 million Australian addresses
(delivery points)
° Maintained 15,425 street posting boxes
Retail network
(pages 24–29)
° Total Post outlets 4,474
° Average customers per day 1.1 million
° Handled 201 million agency-based banking
and bill-payment transactions
“Since Eye on Australia began asking
Australians which company they trust the
most, Australia Post has consistently
scored highly. Consumers see Australia Post
as a company that puts people before profits.”
– The Age, 26 July 2004
(Eye on Australia is an annual survey of consumer attitudes about life and
corporate Australia, conducted by Grey Worldwide and Sweeney Research.)
Australia Post Annual Report 2004/05 Report of of Operations Our year in summary
| 13 |

| 14 |
1
2
3
Post is an essential point of
contact for keeping in touch with
the RACV’s 1.3 million members.

5
4
MORE THAN
A BUSINESS
PARTNERSHIP
For the Royal Automobile Club of
Victoria (RACV), our business is an
important part of keeping in touch
with its 1.3 million members. The club’s
statewide retail network consists of
22 RACV shops and 140 third-party
agents boosted by 1,050 Post outlets.
RACV, a leading Australian automobile club, has been
meeting the needs of its members for more than 100 years.
Today, the organisation offers a range of products and
services, including roadside assistance, member advocacy,
insurance, hospitality, travel and tourism, home security and
financial services. And for all of these services, Post offers
an essential point of connection with the RACV’s members
and customers.
1
2
3
4
5
We offer a range of agency-based services for the
RACV via our network of Post outlets. In 2004–05,
our Postbillpay (p. 26) service was used to accept
membership, insurance policy and finance payments
on behalf of the RACV.
With such a huge membership, the RACV knows
(from experience) that customer relationship
management is a terrific opportunity to promote its
services. That’s why the RACV sends out thousands
of direct mail items to its members and customers
each year.
RACV also uses the Address Notification Service,
offered by Post’s Geospend Division (p. 22), to stay
in touch with members who have moved.
Messenger Post Couriers (p. 32) provides daily
scheduled and express courier services for RACV’s
urgent deliveries between its Melbourne head office
and its shops and suppliers. For the RACV, one of the
main benefits of using Messenger Post is knowing
that our drivers have all undergone security clearance.
And, of course, our Print Post service (p. 21) is used to
deliver 1.1 million copies of RACV’s monthly magazine,
RoyalAuto, to members throughout the state.
Additionally, RACV uses our letters service to send
statements; our parcels and logistics services to
manage the fulfilment of its centenary merchandise;
and our information logistics business, Decipha, to
handle inbound and outbound mail at multiple sites.
And this year, on a trial basis, we stocked RACV maps
and travel guides in 50 PostShops.
Australia Post Annual Report 2004/05 Report of Operations
Core business case study
| 15 |

5
The agreement offers the
benefits of a single invoice,
detailed performance reporting
and reduced distribution costs.
| 16 |
1
2

3
4
MORE THAN
DELIVERING
BANK
STATEMENTS
Our business relationship with
Westpac Banking Corporation involves
a whole lot more than delivering its
banking information and statements
to letterboxes across Australia.
Under an agreement signed with the bank in 2003, we
have become its primary provider of distribution services
– including some 30,000 courier and parcel deliveries
each month. For Westpac, the agreement offers the
administrative benefits of a single invoice, detailed
performance reporting and reduced distribution costs.
1
2
3
4
5
Our subsidiary company Decipha (p. 22) manages
Westpac’s distribution hubs in all state capitals,
except Sydney.
Westpac uses our Parcel Post service (p. 31) to
distribute stationery, forms and marketing material
from the bank’s Sydney-based warehouse to its
812 branches and 24 corporate offices nationally.
Messenger Post Couriers (p. 32) carries
urgent deliveries of cheques and vouchers
from Westpac’s metropolitan branches to its
processing centres in Sydney, Melbourne,
Brisbane, Adelaide and Perth. These are timecritical
deliveries for the bank, as overnight
processing is required to meet settlement
deadlines. Messenger Post Couriers also
performs on-demand courier services for
Westpac, delivering urgent documents and
contracts to branches and direct to customers.
For interstate and regional services, Australian air
Express (AaE) steps in to make sure we continue
to meet Westpac’s crucial delivery requirements.
AaE (p. 32) delivers urgent articles between
capital cities as well as cheques and vouchers
from Westpac’s branches as far as the Northern
Territory and outback areas of Western Australia.
This integrated service is brought together by a
dedicated project team in our Sydney call centre,
which acts as a single point of contact to manage
all enquiries and requests from Westpac staff.
Australia Post Annual Report 2004/05 Report of Operations
Core business case study
| 17 |

| 18 |
CORE
BUSINESS
LETTERS
In a rapidly changing messaging
market, letters remain an enduring
medium because consumers prefer to
receive paper-based communications.
This year we added value to the
Australian letters service through a mix
of efficiency improvements, delivery
reliability and commercial ingenuity.
Highlights
° We delivered 98.2 per cent of bulk
letters for Australian businesses
on time or early. (See p. 20.)
° The volume of promotional mail grew
by 5 per cent. (See p. 19.)
° We helped businesses reach their
customers more effectively through direct
mail, with the introduction of new services,
such as Impact Mail. (See p. 22.)
° We met or exceeded all of our regulated
performance standards, including
delivering 94.9 per cent of domestic
letters on time. (See p. 19–20.)
° We continued to operate one of the
lowest cost and most reliable letters
services in the world. (See p. 20.)

LETTERS
The letters market
In the world’s rapidly changing
messaging market, the letter is
competing with new forms of
electronic messaging media, such
as the Internet, e-mail and SMS.
In Australia, the letter’s share of
the total messaging market has
declined from 49 per cent in 1960
to 14 per cent in 2004. However,
this decline must be viewed in
the context of massive growth
in the overall messaging market,
especially with the proliferation
of electronic messaging over the
past decade.
Many of the world’s leading
postal businesses have reported
declining letter volumes over
recent years. By comparison,
Australian domestic letter
volumes have continued to
increase marginally since 2000,
averaging about 0.4 per cent
per year.
The letters market can be broadly
segmented into three types of
communication.
1 Transactional letters
(comprising 80 per cent
of all letters) involve some
form of transaction between
businesses and their
customers, such as the
mailing of accounts, bills,
statements and cheques.
2 Promotional letters
(comprising 15 per cent
of all letters) involve
marketing communications
(e.g. direct mail).
3 Social letters (comprising
5 per cent of all letters)
involve letters, postcards
and greeting cards sent
between private individuals.
The major competitive advantage
of the letter in the messaging
market is that consumers have a
strong preference for receiving
transactional and promotional
information on paper. As a result,
our letters business is now
about much more than getting
mail into letterboxes. It is about
continually making paper-based
communications more valuable,
more cost-effective and easier
to use – for all of our customers
– through:
° delivery reliability
° price restraint
° improved efficiency
° bulk mail services
° direct marketing services
° mailroom services.
Letter volumes and revenue
Domestic letter volumes continue
to grow – albeit at a slower rate
than the average annual growth
rates of 5 per cent recorded in
the 1990s. Since 2000, Australian
domestic letter volume growth has
averaged 0.4 per cent, per year.
In 2004–05, the volume of
domestic letters we handled
increased by 1.2 per cent to 4.97
billion items. This year’s growth
is due mainly to the continuing
strength of the promotional mail
segment, which increased by
approximately 5 per cent. Growth
in promotional mail volumes can
be attributed to our strategic
decision to promote mail as
a highly effective marketing
communications medium, as well
as to market factors.
The 1.2 per cent increase in
domestic letter volumes delivered
revenue growth of 0.9 per cent.
Revenue from addressed letters
grew by 0.8 per cent (on volume
growth of 0.9 per cent), while
revenue from unaddressed letters
increased by 5.8 per cent (on
volume growth of 3.7 per cent).
Post office boxes
By the end of the financial year,
there were 1.30 million post
office boxes (PO boxes) leased
to Australian consumers and
businesses – up from 1.26
million previously. We launched
an important customer service
enhancement for PO box
customers in February 2005, with
the introduction of Mail2Day.
This electronic notification
service has been implemented
nationally, following a successful
trial in Queensland last year. The
Mail2Day service involves sending
an SMS or e-mail message to
PO box holders advising them
that they have mail in their
PO box. This convenient and
time-saving service means that
customers will know when to
collect their mail.
International letters
Total international letter volumes
declined by 11.5 per cent this
year (including a 15.3 per cent
decline in outward international
letter volumes). The large
decline in outward volumes
is due mainly to a decline in
bulk mailings as some global
businesses moved their mail
production to destination
countries. Electronic substitution
also contributed to the decline
as consumers increasingly used
e-mail, telephony and SMS for
international messaging.
This year, the Universal Postal
Union introduced a new
payment system between postal
administrations for the delivery
of inward mail. Under the new
system, payment for the delivery
of international mail between
industrialised countries is linked
to each postal administration
meeting a standard for inward
international letters of 85 per
cent on-time delivery. At Australia
Post, we exceeded the on-time
delivery target and, as a result,
we received a 5 per cent bonus
payment.
DELIVERY RELIABILITY
Reliable, on-time delivery is not
only the key factor determining
our customers’ satisfaction with
our letters service; it is also one
of our regulated performance
standards. This year we delivered
94.9 per cent of domestic letters
on time or early – against the
regulated 94 per cent target.
Of the letters that didn’t meet our
delivery timetable standard, nearly
all were delivered by the following
day. Our independently monitored
results show that 98.3 per cent of
domestic letters were delivered
on time or within one extra day.
Australia Post Annual Report 2004/05 Report of Operations
Letters
| 19 |

| 20 |
Our delivery performance for
bulk mail reached a new record
this year, with 98.2 per cent of
barcoded, bulk-lodged letters
delivered on time or early. All of
our delivery performance figures
are measured against timetables
outlined in the regulated standards
(e.g. one business day within
the same metropolitan area).
The performance figures are
independently audited by KPMG
and certified by ACNielsen.
Delivering a
community service
Of our three core business
areas, letters is the only one that
is protected in any way. Domestic
letters weighing 250 grams or
less, or priced at less than two
dollars, are reserved to Post under
the Australian Postal Corporation
Act 1989. In return for this
reserved service, we are required
to meet a set of community
service obligations (CSOs).
This year, we met or exceeded
all of the regulated standards
relating to delivery performance
and the public’s access to the
letter service. An independent
audit is conducted to assess
our performance against these
regulated standards. For full
details of how we performed
with reference to the standards,
see page 104.
Our CSOs ensure that all
Australians – regardless of where
they live – have reasonable access
to postal services, including
the delivery of standard letters
within Australia at a uniform price
(currently 50 cents). In effect,
this means that we deliver to
some sparsely populated areas of
Australia where it is not possible
to recoup the cost of delivery.
This year, for example, the cost of
meeting our CSOs was estimated
to be $79.4 million.
PRICE RESTRAINT
We have developed a strong
record over the past decade
of implementing major change
programs that have reduced our
costs and improved the efficiency
of our letter sorting processes.
For our customers, these
improvements have resulted in
more reliable letter delivery, while
enabling us to keep the price of
our letters service well below
increases in inflation.
Our efficiency improvements
mean that Australian consumers
and businesses now enjoy one
of the lowest cost letters services
in the world. Since 1992, the
Australian basic postage rate has
increased only once – from 45 to
50 cents.
The price of a basic postage stamp
(a comparison between 15 developed countries)
Country $AUS price
Switzerland $1.05
Portugal $0.90
Finland $0.90
Japan $0.84
France $0.81
Germany $0.78
Italy $0.72
United Kingdom $0.61
Canada $0.57
Netherlands $0.56
United States $0.51
Australia $0.50
Spain $0.48
New Zealand $0.43
Korea $0.35
Sources: OECD and Australia Post.
Note: Rates calculated using Purchasing Power Parity.
For business customers, the
cost of bulk transactional mail
has actually decreased by about
55 per cent since 1992, when
you account for inflation, the
absorption of GST and discounts
offered with the introduction of
letter barcoding.
Throughout the 1990s, letter price
restraint was possible because
we were able to earn a profit
from the letters business through
productivity gains and letter
volume growth (averaging 5 per
cent per year). With letter volume
growth declining to marginal
levels since 2000, the January
2003 increase in the basic postage
rate was necessary to ensure a
profitable return from the letters
business in the short-term.
In 2004–05, our profit from letters
declined by $56.9 million due to
a combination of the price freeze,
marginal letter volume growth
and rising costs (with inflation,
wage increases and the addition
of 186,000 new addresses).
IMPROVED EFFICIENCY
The Mail & Networks Division
(M&ND) continued to introduce
programs that are improving our
letter-processing efficiency and
reducing the cost of letter sorting.
Projects undertaken by M&ND
during 2004–05 include:
° the development of
pre-emptive technical
maintenance programs for
mail-processing equipment
° closer alignment of resources
in the facilities with workload
requirements
° improving the presentation
of letters into mail-sorting
facilities from retail outlets and
transport hubs
° extending the benchmarking
of mail facility processes
° systems consolidation,
including decommissioning
105 redundant IT applications
° improving the performance
of our mail-processing
equipment.
With the completion in November
2003 of a program to upgrade
our letter sorting equipment,
our focus shifted during the
year to improving the operating
performance of these machines.
During 2004–05, some 420
million articles were processed
by the new large-letter machines.
This represents around 80 per
cent of the total large letters
sorted at major letter facilities
in each state. Approximately
87 per cent of small letters are
handled by our mail processing
equipment – and 69 per cent
of small letters are now sorted
by machines directly to delivery
rounds (previously 67 per cent).
Consolidation of the delivery
network in metropolitan Sydney
continued with the opening of
the Waterloo Delivery Facility
(in July 2004), the Seven Hills
Delivery Facility (December 2004)
and the Leightonfield Delivery
Facility (June 2005). In regional
New South Wales, the south

coast delivery network was
consolidated at Wollongong
in August 2004; expansion
of the Tweed Heads Delivery
Facility was completed in May
2005; and occupation of a new
delivery facility at Forster began
in June 2005. In Queensland,
two machines for small letter
processing were relocated to the
Gold Coast Mail Centre during
May and June 2005 to enable
automated sorting directly to
delivery rounds in this rapidly
growing region.
BULK MAIL SERVICES
PreSort Letters
Barcoding of bulk mail
lodgements has delivered a
number of customer benefits,
including access to lower bulk
postage prices, improved
addressing accuracy and higher
levels of on-time delivery.
We continue to offer technical
support to large-volume mailing
customers. Our customer
barcoding program includes a
diverse range of quality assurance
products and services, such as
the Address Matching Approval
System, the Barcoding Quality
Program, Customer Barcode
Quality Assurance software, the
Mail Piece Testing consultation
service and the PreSort Accuracy
Testing program.
Bulk Mail Partner program
Approximately 85 per cent of all
letters in Australia are prepared
and lodged by mail houses
on behalf of companies and
organisations. The presentation
of these large-volume mailings
from industry partners such as
mail houses has a major impact
on our ability to process and
deliver business mail efficiently
and accurately.
To recognise those mail houses
that have invested in quality
systems and processes, we
implemented a certification
program in August 2004 called the
Bulk Mail Partner (BMP) program.
Developed in partnership with
Major Mail Users of Australia and
the mail houses, BMP requires
eligible mail houses to maintain
defined quality standards. As part
of BMP, a Lodgement Quality
System was developed to record
mail preparation problems and to
identify opportunities for ongoing
improvement. By the end of the
financial year, 32 mail house sites
had achieved BMP status.
EDI Post
EDI Post offers a mail printing
and preparation service for
medium- to high-volume mailers.
The business accepts data
electronically from its clients and
uses this data to prepare, print
and lodge the clients’ invoices,
statements, accounts, cheques
or direct mail. EDI Post achieved
record results in 2004–05, with
revenue increasing by 17.2 per
cent and volumes growing by
30.1 per cent.
Post eLetter, EDI Post’s desktop
mail service, increased its
volumes by 34.2 per cent, mainly
as a result of existing clients
expanding their use of this
economical, time-saving service.
We anticipate continued growth
in Post eLetter as enhancements
to the service are implemented
during the coming financial year.
During the year, EDI Post worked
on developing technologybased
solutions to improve the
production of tickets and fully
personalised direct mail. Both
innovations will be launched in
2005–06.
Print Post
Our publications delivery
service, Print Post, increased its
volumes by 4.1 per cent during
2004–05, mainly because of an
increase in the distribution of
magazines produced to support
customer loyalty programs run
by corporations.
Unaddressed Mail
A new set of national standards
for the booking, lodgement and
delivery of unaddressed mail
was introduced on 1 July 2004.
The Unaddressed Mail Service
achieved 3.7 per cent volume
growth during the year.
DIRECT MARKETING
SERVICES
Mail Marketing
We continued to implement our
strategy of building and promoting
the value of mail marketing by
working with research companies,
advertising agencies, businesses
and community organisations. Our
focus is on providing products,
services and information that
“Mail is still the best, most preferred way to
communicate with customers. It is universal,
descriptive and perceived as secure.
These unique attributes are factors in the
across the board preference for mail and
make it an essential tool for communicating
with customers on a regular basis.”
– Australian Printer Magazine, February 2005
(For more on Post’s direct marketing services see p. 22.)
Australia Post Annual Report 2004/05 Report of Operations
Letters
| 21 |

Letters Australia Post Annual Report 2004/05 Report of Operations
| 22 |
help our business customers
successfully reach their
customers.
This year we also helped
community groups to make
the most of direct mail through
a major sponsorship of the
“Our Community” website
(ourcommunity.com.au). The
website is a valuable information
resource for Australia’s 700,000
not-for-profit and community
organisations, as well as a vital
link to Australian businesses,
governments and the general
public. Our sponsorship
involved the development of the
Marketing, Media and Post Centre
on the website. Launched in
February 2005, the website offers
community groups free access
to practical mail marketing and
media tools to help them reach
potential donors or supporters.
The value of mail as a media
channel was also recognised this
year when it was introduced as a
category in an advertising media
measurement survey conducted
by Roy Morgan. The study,
called Single Source, surveys
over 55,000 Australians annually
about their media consumption
habits and the data is used by
advertising and media planning
agencies when making media
planning decisions. This was the
first time anywhere in the world
that mail had been included in
such a survey in this manner.
Nielsen Media Research (NMR)
launched a subscriptionbased,
on-line service called
MailPix in March 2005. The
service enables advertisers to
evaluate competitive strategies
and creative approaches by
providing images of all direct mail
campaigns received by over two
thousand Australian households.
In the 2005–06 financial year,
NMR will also include mail in
its AdEx survey, which tracks
advertising industry spending.
The AdEx data will help
advertisers and their clients
compare the level of mail usage
with other major media channels.
Impact Mail
Impact Mail, a service introduced
in October 2004, is helping to
boost the effectiveness of direct
mail campaigns by allowing
greater freedom and flexibility in
the design of direct mail items.
The new service means direct
mail items can be designed or
produced in virtually any shape
and do not require an envelope.
To access the Impact Mail service,
customers need to lodge a
minimum of 300 letters of the
same size.
Easy Mail
Easy Mail is a convenient service
used by small to medium-sized
businesses for the printing,
preparation and lodgement of
their promotional mail. Customers
can choose to use any or all
of Easy Mail’s services, which
include printing, collating, folding,
addressing, enveloping and
barcoding of mail. The service is
currently available at 12 locations.
Geospend
Our consumer data and media
products business, Geospend,
achieved revenue growth of
20 per cent this year. Geospend
maintains a lifestyle database
that is rentable for direct
marketing purposes and contains
the demographic, lifestyle and
product preferences of over
1.9 million Australians. In
2004–05, Geospend distributed
13.5 million records (up 17
per cent) for direct marketing
purposes, which generated
an estimated 42.7 million mail
articles (up 31 per cent).
Geospend also offers a range of
services to help households and
businesses changing address
– and assists businesses that are
affected by customer moves.
This year, Geospend supported
1.63 million Australian households
that changed address. Use of the
Mail Redirection Service declined
by 4 per cent, mainly as a result
of stabilisation in the property
market, while there was a 6.3
per cent increase in the number
of households using the Mail
Holding Service.
MAILROOM SERVICES
Decipha
Our subsidiary company Decipha
increased its revenue by 23.2 per
cent this year, largely as a result
of gaining major new clients in the
wealth management, insurance
and financial services industries.
Decipha offers mailroom and
document workflow services to
organisations that receive high
volumes of incoming documents.
The company is equipped to
meet current and emerging client
demands for secure preparation,
conversion and delivery of
correspondence – in physical
or electronic formats. Decipha
has clients in a range of sectors,
including financial services,
government, insurance, utilities,
travel, manufacturing, health,
transport and communications.
THE FUTURE
Consistent with international
trends, the letters market in
Australia is not expected to return
to robust volume growth. There
will be continued pressure on
letter volumes from electronic
media, but we do expect letter
volumes to increase marginally
over the coming year. Our aim
is to maintain volumes in the
transactional letters segment
while continuing to increase
volumes in the promotional
segment. We anticipate a lower
return on the letters business
in 2005–06 as revenue growth
remains modest and the cost
of running the letters business
continues to increase (with the
expected addition of another
200,000 addresses).
We will continue searching
for new revenue-generation
opportunities by working
even more closely with major
mailing customers, promoting
the effectiveness of mail as
a communications medium
and looking for new product
opportunities. In the coming
year, we will launch new letters
services that are designed to help
companies acquire customers.

For the people of Wadeye – a remote Aboriginal community
in the Northern Territory – the small aircraft carrying the mail
and other items every weekday provides an essential link
with the rest of the country and the world.
| 23 |

| 24 |
CORE
BUSINESS
RETAIL &
AGENCY
SERVICES
All across Australia, our Post outlets
are an important point of connection
for consumers, communities,
businesses and government
agencies. In 2004–05, we served
an average of 1.1 million customers
every business day and continued to
build on our reputation as a trusted,
convenient destination for retail
products and agency-based services.
Highlights
° We maintained Australia’s largest physical
retail network, with 4,474 outlets.
° We processed 201 million agency-based
banking and bill-payment transactions.
(See p. 26–27.)
° We designed, printed and distributed
stamps within 48 hours to celebrate
each Australian gold medal victory at
the Athens Olympics. (See p. 25.)
° 633 Australian businesses and
organisations now offer their customers
the opportunity to pay bills through Post.
(See p. 26–27.)
° We conducted over a million passport
interviews and extended into other
identification services. (See p. 27.)
° 575 Post outlets in rural and regional
areas now offer agency-based
business banking services. (See p. 27.)

RETAIL
The retail market
Since the early 1990s, we have
been transforming the post office
network into a conveniently
located, sales-oriented and
customer-focussed retail network.
While we have the largest
physical network of any retailer
in the country, we operate in a
defined area of the retail market
that is concentrated on offering
core mail services, packaging
products, philatelic products and
agency-based services. Beyond
this core offering, we also sell
complementary products, such as
communications (prepaid mobile
telephony), stationery, office and
computer-related products.
Unlike most corporations that
operate in the retail market, our
retail business serves a purpose
beyond making a commercial
return. Under the Australian
Postal Corporation Act 1989,
we are required to maintain a
letters service that is reasonably
accessible to all Australians
and meets the social, industrial
and commercial needs of the
community. More specifically,
the performance standards
regulated under the Act require us
to maintain a minimum of 4,000
retail outlets nationwide, including
2,500 outlets in rural and remote
areas. In 2004–05, we exceeded
these requirements, with a total
of 4,474 Post outlets, including
2,574 in rural and remote areas.
Retail revenue
Overall revenue from retail
business (the total revenue
earned in Post outlets) increased
by 5.1 per cent this year. This
is slightly lower than the 6.0
per cent growth we recorded
last year, but it does reflect
a slowdown in the broader
Australian retail industry. Revenue
growth can be attributed to
increased philatelic sales and
the strong performance of some
complementary product areas.
Serving our customers
We served a total of 281 million
customers in our retail outlets
this year. This means the average
number of customer visits
remained steady at 1.1 million per
business day.
Retail products
Revenue earned from retail
products (including all philatelic
merchandise, packaging,
communications products,
greeting cards, gifts, stationery
and office products) increased by
8.0 per cent this year.
Strong revenue from philatelic
business in 2004–05 (up 19.8 per
cent on last year) is attributable
mainly to the popular program of
philatelic collectables released
to commemorate the Athens
Olympic Games. A highlight of the
program was the release of 17
Australian Gold Medallist stamps.
All 17 stamps were designed
and printed within hours of each
Australian gold medal victory at
the Olympics and were available
in selected Post outlets within
48 hours. (For more information
about the year’s philatelic
highlights, see inside back cover.)
The communications category
(especially prepaid mobile
telephony) continued to be a
healthy source of revenue growth.
Virgin Mobile was connected to
our electronic recharge service
in October 2004, joining Optus,
Telstra and Vodafone as the fourth
telecommunications company to
offer customers the convenience
of instantly recharging their
prepaid mobile phones at 3,078
Post outlets.
We continue to be a convenient
destination for the purchase of
a range of office and stationery
products. Increased sales of
office machines and computer
consumables were the main
factor contributing to the 8.8
per cent revenue growth in the
stationery category.
Retail outlets
Australia Post retail facilities at 30 June 2005
Our national network of postal
outlets is the largest physical
retail network in Australia. At
30 June, our network of 4,474
outlets consisted of:
° 728 corporation-owned
PostShops
° 135 corporation-owned Post
business centres (larger
outlets that cater to the
needs of business customers)
° 2,979 licensed post offices
that are privately owned and
operated as small businesses
(including one Post Office
Agency and four franchised
PostShops)
° 632 community postal agents
(in remote locations) that
offer a basic range of postal
products and services.
During the year we began
implementing an inventory
management system in all
corporation-owned outlets that
will enable us to align the product
mix in outlets more closely with
local customer demand.
By the end of the financial year,
341 outlets had been connected
to this important new system and
the roll-out of the technology was
completed in August 2005.
NSW/ACT VIC/TAS QLD WA SA/NT AUST
Corporate offices 285 233 174 91 80 863
Licensed Post Offices* 922 979 462 296 320 2,979
Community Postal Agents 101 66 189 96 180 632
Total outlets 1,308 1,278 825 483 580 4,474
Note: This table uses Australia Post administrative states, not geographic states (which form
the basis of Table 4 on page 117).
*These figures also include one Post Office Agency and four franchised PostShops.
Australia Post Annual Report 2004/05 Report of Operations
Retail and agency services
| 25 |

| 26 |
In October 2004, we opened
a “new concept” PostShop in
the Westfield Bondi Junction
shopping centre in Sydney,
where we are trialling new
retailing approaches, including
clearer product presentation and
new merchandising techniques.
The standard designs for
PostShops and Post business
centres are currently under
review. Changes will be based
on data from our new inventory
management system, clarification
of our brand promise and closer
analysis of trials conducted at
various outlets. We are also
trialling a model for franchised
PostShops and plan to expand
the trial from four to 20 outlets
over the coming financial year.
Licensed post offices
Two-thirds of all retail postal
outlets in Australia are operated
under a licensing arrangement
as small businesses, known as
licensed post offices (LPOs).
At 30 June 2005, there were
2,979 privately run LPOs serving
local communities across the
nation. One factor contributing
to overall revenue growth in retail
has been the steadily improving
performance of the LPO network,
which achieved an 8.9 per cent
increase in retail product sales
this year.
The central role that the LPO
network plays in the social and
commercial fabric of communities
throughout Australia has a
major impact on our corporate
reputation and commercial return.
This year, by introducing elections
for the Licensee Advisory Council
(LAC), we continued to focus
on improving co-operation and
consultation with licensees.
Established in 2003, the LAC
provides an important forum
for the licensees and Post to
discuss retailing issues and
business development ideas
and initiatives. The board of the
national LAC is comprised of nine
elected licensee representatives
and four senior managers from
Post’s Retail business.
Following the council’s inaugural
elections in July 2004, the first
meeting of the national council
was held in October 2004.
Through the LAC, licensees
have been involved in a number
of product-related initiatives
this year, including changes to
product supply, communication,
merchandising and the
development of licensee-specific
product offers.
Customer service programs
We have established a very
successful program for analysing
and improving our sales and
customer service performance.
Our mystery shopper program,
priorityCustomer, enables us to
assess selling skills and customer
service performance at point of
sale and identify any opportunities
for improvement. In 2004–05, our
customer service rating under
the priorityCustomer program
improved to 95.2 per cent
(previously 93.4 per cent).
This is the second year in which
we have run a national reward
and recognition program for
retail staff. Called Retail Star
Performance, the program
offers cash rewards to staff
working in corporation-owned
outlets that achieve a range of
financial and customer service
performance targets.
AGENCY SERVICES
The scale of our nationwide
retail network, combined with
community trust in our brand,
has enabled us to position the
network as a convenient, local
agency where government
bodies and businesses can
connect with their customers.
Our retail outlets conduct a broad
range of agency transactions, face
to face with customers, on behalf
of Australian businesses and
government bodies. We now have
3,078 outlets that are equipped
with the point-of-sale information
technology to conduct these
agency transactions, and this
technology is connected in
real time to the systems of our
business partners.
We are well known for offering
agency-based banking services
on behalf of financial institutions
and a bill-payment service
on behalf of companies and
government bodies. Other agency
services that we offer include
travellers’ cheques, money
transfer services and personal
identification services.
Revenue from agency services
increased by 3.5 per cent this
year, mainly as a result of strong
growth in relatively new business
areas, such as Western Union
Money Transfers and 100-point
identity checks.
Bill payment
Transaction volumes for our
bill-payment service, Postbillpay,
remained steady at 170 million
transactions. The gross value of
bill-payment collections handled
by Postbillpay increased to $78
billion ($75.5 billion previously).
The number of bill-payment
partners increased significantly
to 633 (from 564 last year),
mainly because a number of local
councils signed on to use the
service. Out of this total, all 633
billers offer their customers the
over-the-counter payment option,
413 offer payment by telephone
(336 last year), and 416 offer the
Internet-based payment channel
(335 last year).
While overall transaction volumes
were maintained, an increasing
proportion of Postbillpay
transactions are now being
processed via our telephone and
Internet-based channels, rather
than over the counter in Post
outlets. In 2004–05, there was
a 43 per cent increase in the
volume of Postbillpay transactions
processed by telephone and a 19
per cent increase in transactions
processed via the Internet.
In the face of increasing
electronic substitution, we are
defending our position by working
with bill-payment partners to offer
an Internet payment service that
operates on their own website
and under their brand but uses
the Postbillpay infrastructure.
This year we developed a
customised Internet-based

ill-payment service for Western
QBE Insurance, a division of QBE
Insurance (Australia) Limited
group, and we will offer a similar
service for more companies over
the coming year.
We are also defending our
position in bill payment by
encouraging our bill-payment
partners to adopt Billmanager,
our household bill management
service. Seventy bill-payment
partners currently offer
Billmanager and we expect
the service’s popularity and
reach to grow in 2005–06.
Banking
Our agency banking service,
giroPost, enables customers
of 77 financial institutions to
conduct their day-to-day banking
transactions at 3,078 Post outlets
around Australia. Depending on
the financial institution, customers
can make deposits, withdrawals
and credit card payments, and
check their account balances.
Customers can also complete the
100-point identification checks
required to support the opening
of new bank or credit card
accounts.
Transaction volumes decreased
by 1.6 per cent this year to 31
million, reflecting the impact of
electronic substitution on overthe-counter
banking.
We expanded access to our
business banking services, with
882 Post outlets now offering this
service (compared with 612 last
year). Of these, 575 are in rural
and regional areas. Transaction
volumes for business banking
increased by 7.8 per cent during
the year. There are currently
five banks and one credit union
offering business banking via
Post and we expect more banks
to begin offering the service
in 2005–06.
In September 2004, the Federal
Government committed to
funding the connection of
266 smaller rural and remote
outlets to our on-line banking
network. Under phase one of
the Bank@Post program, the
first 20 outlets were connected
by 30 June 2005. The remaining
outlets will be connected by the
end of 2006. When this project
is complete, more than 3,300
Post outlets will be electronically
connected in real time via Post’s
point-of-sale counter system.
Money transfer services
We are increasingly recognised as
a convenient destination for the
Western Union Money Transfer ®
service, with transaction volumes
for the service increasing by over
50 per cent this year. Growth in
Western Union Money Transfers
more than compensated for
the 2.7 per cent decline in the
volume of traditional domestic
money order transactions that
we handled.
Travellers’ cheques
The introduction of a commissionfree
policy for the sale of
American Express ® Travellers
Cheques in June 2004 was the
main factor contributing to the
doubling of transaction volumes
this year. Improved promotion
of the availability of the service
at Post outlets also contributed
to this phenomenal growth
in volumes.
Personal identification
services
Our reputation as a convenient
and trusted third party has been
vital in positioning our business
to handle an increasing range of
personal identification services.
The number of passport
interviews we conducted on
behalf of the Department
of Foreign Affairs and Trade
increased by 15.3 per cent this
year – to a total of 1.03 million.
We also trebled the number of
100-point identification checks
we conducted on behalf of
credit card issuers and financial
institutions, mainly as a result of
signing more financial institutions
to offer this agency service via our
retail network.
In South Australia, we
implemented a photocard service
which enables the acceptance
and renewal of licence
applications at selected Post
outlets. The development work
for this initiative has strengthened
our capability in the production
of personal identity cards, so we
are now in a position to offer this
service more broadly.
“The effort to get the gold medallists
stamps into post offices around Australia
within 48 hours of the presentation
ceremony requires an effort almost as
magical as that of the athletes themselves.”
– 7.30 Report, ABC Television, 25 August 2004
(Reporter: Mick Bunworth)
(For more information on Gold Medallists stamps, see p. 25.)
Australia Post Annual Report 2004/05 Report of Operations
Retail and agency services
| 27 |

Australia Post Annual Report 2004/05 Report of Operations
Retail and agency services
| 28 |
Business support services
Our Shared Services Division
(SSD) provides a comprehensive
range of financial, accounting,
human resources and business
support services to Post as well
as external companies. This year,
SSD paid more than 210,000
invoices, settled 170 million
Postbillpay transactions and
processed pay fortnightly for
34,804 Post staff.
SSD also expanded its payroll
services to Post Logistics,
Post Fulfilment Online and
Decipha. The division continued
to partner Post Logistics to
provide customer care services
as part of its integrated
fulfilment contracts with Dell
and Microsoft. In March 2005,
SSD was named runner-up for
the title of “best mature shared
services” in the Shared Services
Asia–Pacific Excellence Awards.
THE FUTURE
Over the coming year, we will
adjust the product mix in our
outlets to ensure that the range
complements our core offer,
reflects local customer demand
and maximises the return we earn
from the retail businesses.
The installation of our new
inventory management system
for corporate outlets will give us
a valuable tool to assess product
viability, improve stock levels
and reduce warehousing costs.
The system will also enable
us to segment our network of
PostShops and Post business
centres into consumer-dominant
and business-dominant categories
and vary the product and service
mix to suit these segments.
We will enhance the marketing
and packaging of our agencybased
services to give a clearer
depiction of the many ways
in which we are connecting
customers with businesses and
government bodies.
We also plan to broaden and
deepen the range of agencybased
services that we offer.
We will work to increase the
number of small to medium-sized
businesses that use Postbillpay
for the acceptance of customer
payments. We will look for new
business opportunities in personal
identification services, particularly
in relation to the issuing of
drivers’ licences and student
identity cards. And we will trial
new services, including a qualified
lead-referral model for insurance
and loans.
“[The Derby Post Office is] a facility that
everyone in town uses, and we’re well
aware that we have a responsibility to
the community to offer the best
service possible.”
– Kimberley Times, Western Australia, 7 April 2005
(Licensed post offices (like the one in Derby WA, run by Glenn and
Heather Albert, quoted) comprise 67 per cent of Post’s retail network
and often provide essential products and services to rural communities.)

Australia Post Annual Report 2004/05 Report of Operations
| 29 |

| 30 |
CORE
BUSINESS
PARCELS &
LOGISTICS
With leading parcel-processing
technology now at our disposal,
we are equipped to offer customers
a highly efficient and reliable parcels
service. In 2004–05, we extended
the capacity and capability of our
parcels and logistics network through
product innovation, acquisitions
and closer co-operation with our
business partners.
Highlights
° Domestic parcel volumes increased by
° Express Post volumes increased by
° International parcel volumes increased by
° We launched Express Courier International
° We acquired two companies – SnapX
° We worked closely with postal partners
° Our parcel-processing capacity,
3.4 per cent.
5.1 per cent.
4.9 per cent.
– a reliable, cost-effective international
courier service. (See p. 32.)
and SWADS – enlarging our capacity and
expertise in courier and logistics services.
(See p. 32 and 34.)
in the Asia–Pacific region to develop
enhanced international parcels and
logistics services. (See p. 32 and 33.)
handling and efficiency all improved
with the installation of new automated
parcel-sorting equipment. (See p. 31.)

PARCELS
The parcels market
The parcels market is a highly
competitive, global market.
The market can be divided into
two main segments: low-volume
users (such as consumers and
most small businesses) and
high-volume users (such as
large businesses that send to
consumers and other businesses).
During the year, we retained our
position as the market leader for
the low-volume domestic parcels
segment by offering a truly
national network, high levels of
delivery reliability and competitive
prices. At the same time, we
continued to build our share of
the high-volume domestic parcels
market. In recent years, we have
focussed on developing more
flexible and sophisticated parcels
services that will enable us to
win parcels contracts in specific
industries within the high-volume
segment of the market.
DOMESTIC PARCELS
Parcel Post
We are committed to providing
a reliable, low-cost, nationwide
parcel delivery service for all
Australian consumers and
businesses. During the year,
Parcel Post maintained a strong
market position in its traditional
segments – parcel despatches
from business to consumer and
from consumer to consumer.
Our focus this year was on
developing new management,
reporting and tracking systems
that will add flexibility and
capability to the Parcel Post
network. These new systems
will position Parcel Post to
capture a greater share of
the high-volume segment of
the market by improving our
ability to handle (and track)
multi-parcel consignments.
Due to be implemented during
2005–06, the systems will give
our customers access to timely
and accurate information about
the delivery status of their
parcel consignments.
A program to improve the job
performance, presentation and
national consistency of parcel
delivery contractors continued
during the year. In June 2005,
we released a revised induction
and training manual for parcel
contractors as well as a portable
reference guide, called The
Contractor’s Glovebox Guide.
Parcel volumes
We achieved good growth in
domestic parcel volumes for
the third consecutive year, with
volumes up 3.4 per cent this year
(following a 5.2 per cent increase
last year and 3.2 per cent growth
in 2002–03).
The growth in our parcel volumes
is coming from several different
sources. An increase in on-line
selling by small to mediumsized
businesses was the major
factor contributing to record high
sales of prepaid satchels. In the
business-to-consumer parcels
market, our share of the wine
distribution market continued
to grow strongly.
In the high-volume segment,
we increased the amount of
business-to-business parcels
we handle by 8.7 per cent,
mainly by targeting our sales
endeavours in several industryspecific
segments.
Our parcels network
The final elements of the
$129 million program to
modernise our parcel handling
Total delivery points (millions)
network were completed in
July 2004 with the relocation
of small-parcel sorting machines
to the expanded facility at
Underwood (in Brisbane) and new
facilities at Ardeer (in Melbourne)
and Chullora (in Sydney).
During the previous financial year,
new parcel-processing equipment
was installed at all three facilities
to automate the handling and
sorting of large parcels. The
performance of these machines
improved considerably during
the year, with their throughput
increasing by 20 per cent.
In April 2005, the Mail & Networks
Division launched a program
to optimise the operations
of the restructured parcels
network. The program has
improved workplace efficiency
and productivity by refining
processing steps, benchmarking
performance and improving
transport fleet utilisation.
EXPRESS AND
COURIER SERVICES
Express Post
Express Post volumes increased
by 5.1 per cent during the year.
The growth was fuelled by good
economic conditions; recent
expansions to the product range
and the guaranteed delivery
network; and a successful
advertising campaign that
promoted the potential of
Express Post to consumers
and businesses.
Year
Australia Post Annual Report 2004/05 Report of Operations
Parcels and logistics
| 31 |

| 32 |
Growth was particularly strong
in Express Post satchels (with
volumes up 12.7 per cent) and
Express Post parcels (up 14.5 per
cent). An important focus in the
coming year will be to expand
the guaranteed next-day national
delivery network to outer areas
of metropolitan Melbourne and
possibly to Cairns and Townsville.
Delivering exceptional service
performance is vital to maintaining
customers’ confidence in Express
Post. Our benchmark is to
achieve better than 99 per cent
on-time delivery. Independently
conducted research showed that
we consistently exceeded the 99
per cent on-time delivery target
for Express Post this year.
Messenger Post Couriers
Our courier service, Messenger
Post Couriers, expanded its
customer base of large and
medium-sized businesses this
year, resulting in a 40.1 per cent
increase in revenue. Messenger
Post Couriers offers clients a
nationally consistent service with
consolidated billing, transparent
reporting and proof of delivery.
During the year, we implemented
a new technology-based system
that allows large-volume clients
to electronically transfer multiple
consignments directly into
the Messenger Post Couriers
despatching system.
In March 2005, we acquired
SnapX Couriers, a Sydney-based
company specialising in timecritical
deliveries. SnapX was
merged with Messenger Post
Couriers to increase the size of
our nationwide courier fleet to
more than 550 vehicles.
Joint-venture partners
We are a joint-venture partner
with Qantas in two express freight
delivery businesses – Star Track
Express and Australian air Express
(AaE). Star Track Express is one
of Australia’s leading businessto-business
express road freight
companies, while AaE offers
complementary express air and
linehaul delivery services.
Together, these two businesses
generate the majority of profits
derived from our joint-venture
companies.
INTERNATIONAL
PARCELS
International parcel volumes
International parcel volumes grew
this year after a disappointing
decline last year. Total volume
growth was 4.9 per cent, which
includes 3.2 per cent growth in
outward international parcels.
Improvements in our international
delivery efficiency and parcel
tracking capability have played
an important role in winning new
international parcel customers
and increasing volumes.
New international
gateway facilities
Construction of two new gateway
facilities, which began in June
2004 to handle the screening and
processing of inward international
mail items, continued during
the year and is scheduled for
completion by mid-2006.
In Sydney, we are completely
refurbishing the former Sydney
Parcel Centre at Clyde. The
Melbourne Gateway Facility, at
Tullamarine, is a new purpose-built
building that will also be used for
processing Express Post items.
The new facilities will enable
100 per cent mail screening
using a combination of X-ray
equipment, detection dogs
and physical inspection.
As part of a commitment to
the Federal Government, we
provide facilities and equipment
to ensure 100 per cent screening
of inward international mail by
the Australian Customs Service
and the Australian Quarantine &
Inspection Service.
Express Courier International
Express Courier International (ECI)
was launched in March 2005. ECI
is an enhanced and rebranded
version of EMS International
Courier. The market response
to ECI, especially among small
to medium-sized businesses,
exceeded expectations. Three
months after launch, outward
volumes for ECI were more
than 30 per cent higher than the
superseded EMS service.
ECI offers reliable door-to-door
delivery to over 190 countries and
territories, with delivery between
most major cities taking two to
four business days. The extended
product range includes prepaid
envelopes, satchels and boxes
and a new activation method has
increased the number of outlets
selling ECI.
Items can be lodged at Post
outlets, by courier pick-up or
via the Express Post gold box
network. The service includes
on-line tracking and signed
delivery for most destinations.
A dedicated national call centre,
with extended hours of operation,
has also been established to
support the ECI service.
In the lead-up to the ECI
launch, we achieved significant
improvements in delivery
performance for express
international deliveries
by analysing and refining
international mail paths and
working closely with overseas
postal authorities.
Regional co-operation
Over the past three years a more
reliable international delivery
network has been developed in
alliance with five leading Asia–
Pacific postal administrations.
This alliance was publicly
announced at a press conference
in Hong Kong after the end of the
financial year (in July 2005).
The CEOs of the participating
postal administrations – Australia
Post, China Post, Hongkong Post,
Japan Post, Korea Post and the
United States Postal Service –
attended the announcement and
committed to offering guaranteed
international delivery services.

LOGISTICS SERVICES
The logistics market
Logistics is a highly competitive,
global, service-based industry.
To achieve competitive advantage
in logistics requires technological
savvy, flawless systems and
processes and an outstanding
customer service ethic.
The outsourced Australian
logistics market is worth an
estimated $6.5 billion annually
and it is growing at more
than 5 per cent per year. This
growth has been encouraged
by the worldwide trend towards
outsourcing of supply chain
management as businesses
focus on their core strategic
and operational issues. The
globalisation of industry is
another factor that has boosted
international growth in logistics,
with companies increasingly
manufacturing products far
from their domestic markets.
Our corporate strategy focuses
on defending our position in
our three core markets while
extending into complementary
areas where there is the potential
for growth and profit. Consistent
with that strategy, over the past
five years we have been building
our capability and capacity in
logistics services.
Our strategy aims to add volumes
to the existing parcels network
and expand our capability in
business-to-business delivery by
becoming a leading supplier of
logistics and distribution services.
In 2004–05, we expanded our
domestic logistics businesses,
while also establishing a logistics
foothold in the Asia–Pacific region.
Post Logistics
Our main logistics business,
Post Logistics, offers business
customers a range of integrated
logistics and fulfilment services
that can be bundled together
according to the client’s
requirements. This suite of
services includes electronic order
processing, automated reporting,
credit management, warehousing,
inventory management, kitting,
pick-and-pack, distribution and
returns management.
Post Logistics revenue increased
by 24.8 per cent this year.
Post Logistics consolidated its
Sydney operations at the hightech
Wetherill Park warehouse
facility, which utilises automated
cranes and robotic picking
devices. The construction of a
6,500-square-metre, purposebuilt
facility near the Brisbane
airport began in April 2005 and
is scheduled for completion in
December 2005.
Logistics joint venture
with China Post
In response to the increasing
demand among Australian
businesses for logistics and
supply chain support in China,
this year we established a jointventure
logistics company with
China Post. Called Sai Cheng
Logistics International, the new
business began operating in
February 2005, with the official
opening of a Shanghai-based
hub occurring after the close of
the financial year, in July 2005.
Other Sai Cheng Logistics hubs
are planned for China’s key
commercial and manufacturing
centres and will link to similar
facilities in Australia.
Products traded by Australia
and China include consumer
electronics, textiles, clothing
and automotive parts. Until now,
supply chains between the two
countries have required multiple
service providers, making it
complex for businesses to get
goods from point of manufacture
in China to point of consumption
in Australia, or vice versa.
Sai Cheng will be able to manage
the whole supply chain or parts
of it, including collecting goods
from the factory, assembling
orders, packing and consolidation,
international sea and air
freight, customs clearances,
time-sensitive delivery and
credit management.
“Australia Post is going to China, and not
by slow boat ... The Shanghai-based joint
venture, to be known as Sai Cheng Logistics
International, plans to create a state-of-theart
logistics hub through which Australia
Post can offer companies whole-of-supplychain
services ‘from point of manufacture
to point of consumption’.”
– The Australian, 18 November 2004
(Australia Post announces a new Shanghai-based joint venture with
China Post to be known as Sai Cheng Logistics International. See above.)
Australia Post Annual Report 2004/05 Report of Operations
Parcels and logistics
| 33 |

Australia Post Annual Report 2004/05 Report of Operations
Parcels and logistics
| 34 |
Post Fulfilment Online
Post’s subsidiary company Post
Fulfilment Online provides facilities
for inventory management,
fulfilment, pick-and-pack, and
delivery of groceries (including
frozen, chilled and produce
items). The installation of
inventory management systems
at facilities in Melbourne and
Sydney has improved warehouse
efficiency and the facilities’
ability to manage increasing
volumes of customer orders.
The new systems, combined
with significant process
improvements, have enhanced
order accuracy and inventory
management.
Logistics acquisition
We acquired a leading thirdparty
logistics company, State
Warehouse and Distribution
Services (SWADS), in March 2005.
The SWADS acquisition adds
another 12 warehouses to our
logistics capacity and increases
our presence in the business-tobusiness
logistics market.
OTHER SERVICES
iPrint
iPrint Corporate, our joint-venture
print management company
(co-owned with wellcom),
increased its revenue by 13 per
cent this year. iPrint manages
the vast majority of our internal
printing requirements, including
stamps, philatelic-related
products, retail catalogues and
publications. iPrint also provides
print management services to a
wide range of clients.
corProcure
In June 2005, we stopped
offering e-procurement services
to external clients via our
subsidiary company corProcure.
While corProcure has been
withdrawn from the external
marketplace, its technology
platform will continue to be
used internally to support
our e-procurement and
e-commerce activities.
THE FUTURE
The completion of the parcels
network restructure has added
significantly to the processing
capacity of our parcels network
while enabling greater processing
efficiency and improved delivery
performance. In effect, the new
network positions us to handle
increased volumes efficiently.
A major focus of the coming
year will be strengthening our
competitiveness in the parcels
market by launching technologyenabled
services, such as multiparcel
consignment services
and enhanced parcel tracking
and proof of delivery. With these
improved network capabilities,
we will pursue more contracts
in the high-volume segment of
the parcels market by targeting
specific industry segments.
We are expecting healthy growth
in international parcels as a result
of improved tracking capability
for air parcels and growing
market awareness of the Express
Courier International service. We
have also introduced electronic
consignment note software
that will enhance our ability to
meet the needs of high-volume
international parcel customers.
A newly formed solutions
group will develop systems and
protocols to provide complete
supply chain support for our
business customers – from
point of manufacture to point
of consumption.
“Australia Post has become one of the
smartest players in the supply and logistics
business, moving beyond its traditional
role as a government owned postal
carrier to become a major third-party
logistics provider.”
– Australian Financial Review, 10 March 2005
(See p. 33 and above for more information on Post’s logistics services.)

Post Logistics’ high-tech warehouse
at Wetherill Park in Sydney uses
automated cranes and robotic picking
devices. (See p. 33.)
| | 35 35 | |

2
1
| 36 |
In recognition of their efforts – and to
support the causes that are important
to them – we created the Australia Post
Community Champion Award.

3
4
5
MORE THAN
A CHAMPION
WORKER
Every day, our workforce makes a
valuable contribution to communities
throughout Australia. Over and above
their paid employment, many of
our staff, licensees and contractors
selflessly give their time to volunteer with
local community groups and charities.
In recognition of their efforts – and to support the causes
that are important to them – this year we created the
Australia Post Community Champion Award. Winners of
the award are presented with a $100 gift voucher as well as
a $1,000 cheque to donate to their nominated community
group. Thirteen people have been recognised since the
award was introduced in January 2005, among them:
1
2
3
4
5
Maxine Bowden, a postie in Port Pirie, South
Australia, has been helping the intellectually
disabled as a Special Olympics 10-pin bowling
coach and league co-ordinator for the past decade.
Shane Morse is a mail contractor in northern NSW
who gives about 10 hours a week to two local
emergency organisations – the Tweed Coast Rural
Fire Service and the Tweed District Rescue Squad.
Canberra postie Gladie Milne has been volunteering
with the ACT State Emergency Service for 17 years.
During the Canberra fires of 2003, she volunteered
for 23 consecutive days.
Shirley Freeman, the licensee at Avoca in Tasmania,
is a pillar of her community. Over the past 30 years,
Shirley has volunteered for her local church, the
district committee, Neighbourhood Watch, Camp
Quality and the Country Women’s Association.
Husband and wife team Jim and Sharryn Caratti
both work for Australia Post in Perth. The couple
has made an enormous contribution to the
Mirrabooka Swimming Club over 22 years – in
various roles from timekeeping and fundraising
to club president.
Other winners of the award include Peter Basra, Sue
Beutel, Shyh Jieh Chung, Tracey Gierke, Ann Gorringe,
David Stevenson and Rosanna White.
Australia Post Annual Report 2004/05 Report of Operations
Corporate sustainability case study
| 37 |

1
Australia Post Annual Report 2004/05 Report of Operations
We developed an innovative recycling
solution that had benefits for our
business, for the community and for
the environment.
2
2
3

4
5
MORE THAN AN
ENVIRONMENTAL
SOLUTION
Faced with a growing operational
and environmental problem, this year
our Mail & Networks Division (M&ND)
developed an innovative recycling
solution that is delivering benefits for
the environment, for the community
and for our business.
1
2
3
4
5
Each year about a million disposable plastic
bags arrive at our international gateway facilities
carrying important mail from all over the world.
(The disposable bags were introduced several
years ago by overseas postal administrations
to eliminate the expense and time involved in
returning reusable bags to their country of origin.)
With such a vast quantity of disposable bags
entering our network, their storage was beginning
to absorb valuable time, space and equipment.
This operational concern meant that we faced the
need to find an environmentally responsible, and
sustainable, way to dispose of the bags.
After 18 months of consultation and hard
work, the Network Optimisation Unit in M&ND
implemented an innovative solution to the
problem this year. The first step in the solution
involves transporting the mail bags to Brunswick
Industries Association Inc. (BIA), a Victorian
workshop that provides employment for people
with disabilities.
Post assisted BIA in purchasing a baling machine,
so the company’s employees can bale up the
plastic bags ready for recycling. The bales are
then sold on to a plastics company that arranges
their recycling. (In recognition of the great work
done by BIA, Post is donating all money earned
from the sale of the material to charity.)
Through this process, the disposable plastic
bags are being recycled into a range of products,
including buckets, pot plant holders and the
ubiquitous red, white and blue shopping bags
that are sold around the world. It’s a solution that
(on top of the operational and community benefits)
is saving 45 tonnes of waste per year from going
into landfill.
Australia Post Annual Report 2004/05 Report of Operations
Corporate sustainability case study
| 39 |

| 40 |
CORPORATE
SUSTAINABILITY
The implementation and
application of ecologically
sustainable development
(ESD) within Australia Post
is a continuing program. In
addition to being required by
law, sustainability is necessary
to protect our brand and
business reputation, to maintain
the wellbeing of staff and
stakeholders and to respond to
the commercial requirements
of major customers.
Post has always practised most
elements of sustainability,
through a range of separate,
isolated initiatives. However,
PEOPLE
MANAGEMENT
Our people management
strategies have been the
foundation for sustained
productivity gains and have
made a significant contribution to
Post’s growing profitability. Over
the past 15 years, our people
have played a significant role
in transforming our culture and
since 2002, these programs
have been formally arranged
into a sustainability program
that involves monitoring all of
the corporation’s economic,
social, environmental and
human impacts.
Our sustainability steering
committee sets overall directions
for the corporation’s ESD
program and is comprised of
executives at group manager
level or above. A permanent
working party, comprised of
senior managers from across the
business, is responsible for the
planning and implementation of
CORPORATE
SUSTAINABILITY
PEOPLE
co-operating in major change
programs that have made our
operations more efficient and
our business more customer
focussed.
Our corporate transformation has
been balanced throughout with
progressive industrial relations
policies, proactive management
of occupational health and safety
issues, a strong commitment to
diversity and equal employment
the ESD program. This working
party has developed a set of ESD
principles, based on the Global
Reporting Initiative model, which
are supported by action plans
aimed at integrating ESD into
Post’s operations and culture.
“[Australia Post] is regarded as a company
that comes up with fresh ideas. It is seen
as giving back to the community, and has
maintained high levels of trust among most
of its employees because it has not engaged
in recent years in swingeing retrenchments
or branch closures.”
– Business Review Weekly, 22 April 2004
opportunities, integrated
succession planning and effective
grievance procedures.
The total number of full-time
and part-time staff we employed
at 30 June 2005 fell slightly
to 34,804 (35,049 last year).
The number of full-time staff
decreased to 25,851 (26,019
last year) and the number of parttime
staff also declined, to 8,953
(9,030 last year).

In 2004–05, we achieved
productivity gains of 2.6 per cent,
bringing cumulative productivity
improvement over the past five
years to 17.0 per cent. This is four
times the national average.
WORKPLACE
PARTICIPATION
The major workforce participation
event of this year was the
overwhelming vote in favour of
our sixth enterprise bargaining
agreement (EBA6), which covers
90 per cent of employees.
Effective until 31 December 2006,
the agreement delivers a 10 per
cent salary increase to eligible
staff, paid in four increments, as
well as a $400 bonus payment
based on achieving our delivery
performance targets (see right).
The main objective of EBA6
was to achieve commitment
to ongoing change within Post
while recognising the need for
job security for our employees.
Over 19,000 staff participated
in the voluntary EBA6 ballot.
Of those who participated, 78 per
cent voted in favour of the new
enterprise agreement. (A separate
EBA covering Post Logistics staff
was also successfully negotiated
during the year and became
effective in February 2005.)
The enterprise agreement was
the outcome of negotiation
with relevant unions (principally
the Communications, Electrical
and Plumbing Union and
the Community and Public
Sector Union).
The conclusion of EBA6
negotiations and the success
of the subsequent staff ballot
contributed to a reduction in the
incidence of industrial disputes
in 2004–05. Industrial disputation
was almost non-existent this year,
falling to three days lost for every
thousand employees.
Under EBA6, there are clear
guidelines for consulting with
employees and unions on our
workplace change initiatives, as
well as a commitment that there
will be no industrial action during
the life of the agreement.
Our Human Resources Support
Plan for 2005–08 identifies
employee engagement as critical
to our future business success.
In May 2005, we conducted a
staff survey to seek a deeper
understanding of our employees’
opinions. Nearly 70 per cent
of staff (23,819 employees)
responded to this voluntary
survey. The results are being
communicated to management
and staff, and are being
addressed in action plans at all
levels of the business.
PAY AND CONDITIONS
Because of the protracted nature
of EBA6 negotiations during 2004,
the first of the salary increases
(of 4 per cent) outlined in the
agreement was paid to eligible
employees in August 2004.
A further 2 per cent pay rise
(representing the second EBA6
salary increase) came into effect
on the last day of the financial
year, 30 June 2005. Eligible
staff will receive two further pay
increases (of 2 per cent each)
during the term of EBA6, and a
bonus payment in March 2006
if our main service performance
targets are met.
Through EBA6, we also
committed to providing:
° an extra week’s paid
maternity leave for staff
(effectively increasing paid
maternity leave for eligible
full-time employees from
12 to 13 weeks)
° greater access to carer’s leave
° the opportunity to salary
sacrifice for laptop computers
° a $50 subsidy to obtain
independent financial advice
about superannuation
“choice of fund” issues.
Superannuation is an important
part of our employee benefits
package. We offer permanent
employees in the Australia Post
Superannuation Scheme (APSS)
a defined benefit of 14.3 per cent
of their final average salary for
each year of full-time service.
We ran a targeted communication
campaign from April to August
2005 to help employees
understand the superannuation
“choice of fund” legislation that
was introduced on 1 July 2005.
Our employees have been able
to choose their own fund for
nearly five years, but virtually all
staff have chosen to remain in
the APSS.
RECOGNISING
PERFORMANCE
Recognising and rewarding
outstanding performance is
a quality that we value at all
levels of our business. At senior
management level, executives
and managers are eligible for
bonuses based on meeting
individual performance targets
that are set at the start of each
financial year.
Under EBA6, all staff covered
by the agreement are eligible
for a $400 bonus payment if
we achieve our major service
performance target of delivering
94 per cent of letters on time
(in all states) for the period
from 24 November 2004 to
31 December 2005.
Additionally, the Managing
Director sent a $96 Coles Myer
gift voucher to every staff
member, licensee and contractor
in December 2004 as a Christmas
“thank you” for outstanding
corporate results achieved
in 2003–04.
Our annual National Excellence
Awards again highlighted
the daily contribution and
commitment of our staff to
exceeding our customers’
expectations. The awards also
recognise the many innovative
ideas that allow continuous
improvement in our business
performance and customer
service. Staff at 19 facilities
received the major $200 award
this year, while staff at another
15 facilities received a $100
special commendation award.
For information about how
we are recognising our Retail
staff, see the Customer Service
Programs section on p. 26.
Australia Post Annual Report 2004/05 Report of Operations
People
| 41 |

| 42 |
LTIFR
WORKPLACE HEALTH
AND SAFETY
The incidence of work-related
lost-time injuries fell by 5 per cent
this year. The consistent, longterm
improvement in our losttime
injury frequency rate (LTIFR)
continued, reaching a record low
of 9.6 lost-time injuries per million
work hours.
This improvement in our safety
record is the result of our
continued focus on a range of
injury prevention and workplace
safety initiatives, including
defensive driver training for
motorcycle posties, observational
safety training for supervisors,
OH&S auditing, safe equipment
design and workplace-based
safety improvements. During the
year, we introduced upgraded
procedures for the safe operation
of load shifting equipment,
including forklifts, and new
procedures for the safe isolation
of faulty equipment. We also
continued our rehabilitation and
return-to-work programs.
In July 2004, Post was a joint
winner in the “workplace safety
innovative solutions” category at
the annual Safety, Rehabilitation
and Compensation Commission
Safety Awards. The award
recognised a New South Wales
initiative to control the risk of
injury associated with the use of
motorcycles for mail delivery.
Financial year
EMPLOYEE HEALTH
AND WELLBEING
Our employee health and
wellbeing program, Get a
Balanced Life, is designed to offer
tangible quality-of-life benefits for
employees while also delivering
productivity benefits for the
business. This year, the program
focussed on nutrition, physical
activity, sun safety and improving
interpersonal relationship
skills. The program includes a
mail-order lending library and
offers health information in 44
languages. A telephone-based
Health Resource Centre supports
the program with information for
employees and referrals to local
community services and activities.
In recent years, Get a Balanced
Life has evolved to include
partnerships with government
and public health bodies. Since
July 2003, the program has
offered a dedicated telephone
counselling service, in partnership
with Mensline Australia, for
male employees with family
and relationship concerns.
We continued to partner with the
Commonwealth Government’s
Child Support Agency (CSA) in
the Staying Connected program.
The program is designed to help
separated fathers improve their
relationship with their former
partner and stay connected
with their children. Post’s role
in the pilot of the program was
acknowledged when the CSA
won the Prime Minister’s Gold
Award for Excellence in Public
Sector Management for this
program in November 2004.
In an independent evaluation,
program participants reported
improvements in their family life
and their physical and emotional
wellbeing, with 88 per cent of
participants also saying their work
performance had improved.
EQUAL OPPORTUNITY
AND DIVERSITY
With over 120 nationalities
represented in our workforce,
we recognise that business
performance and productivity
are enhanced when equal
employment opportunity
(EEO) is promoted, diversity is
well managed and individual
differences are valued.
Our new workforce diversity
strategy for 2005–08 has three
key goals:
1 to meet all legislative
obligations under the EEO
(Commonwealth Authorities)
Act 1987
2 to entrench diversity
management as part of
normal business practice
3 to continue to employ diversity
strategies and initiatives
that make our business an
employer of choice and give
us a competitive advantage.
Efforts over the past year
have been directed towards
developing the Diversity @
Post kit (which was launched in
August 2005), which provides
our managers with tools to
integrate diversity into day-to-day
management practices.
We maintained our reputation as
a leader in the area of Indigenous
employment, with the number
of Aboriginal and Torres Strait
Islander people employed by
Post increasing to 631 this year
(573 last year). This represents
1.8 per cent of our workforce,
compared with 1.6 per cent last
year. The proportion of employees
with disabilities was stable at 9
per cent and the proportion of
employees from non–English
speaking backgrounds increased
to 20.8 per cent.
The representation of women in
our workforce increased slightly
to 38.7 per cent of the total
workforce, and the proportion of
women in senior management
roles increased, with females
now filling 28.0 per cent of all
senior management positions
(27.5 per cent last year). Detailed
information about our EEO
and diversity initiatives can be
found in the Equal Employment
Opportunity Report 2004–05,
available on the Internet at:
auspost.com.au.

Changes in workforce composition over the past five years
(all figures are percentages of total workforce)
Like all Australian companies,
we face an emerging challenge
with our workforce becoming
older and the decreasing supply
of young labour entering the
workforce. This issue constitutes
our major medium-term strategic
challenge in people management.
As part of our assessment of this
issue, we are planning to conduct
two comprehensive surveys in
late 2005 to discover the likely
extent of loss of Post people and
knowledge over the next 20 years.
Conducted in conjunction with
Swinburne University’s Centre for
Business Work and Ageing, the
first survey will involve recent Post
retirees while the second survey
will involve current staff aged
45 years and over. The findings
of these surveys will form the
basis of our workforce planning
activities relating to older workers,
including our retention, learning
and recruitment policies.
MUTUAL TRUST
AND RESPECT
We recognise that our business
success is dependent upon
fostering a working environment
2000/01 2001/02 2002/03 2003/04 2004/05
Women 37.1 37.6 38.0 38.5 38.7
Men 62.9 62.4 62.0 61.5 61.3
Indigenous Australians 1.4 1.6 1.7 1.6 1.8
People from non–English
speaking backgrounds
19.9 20.7 20.2 20.2 20.8
People with disabilities 8.8 9.7 9.4 9.0 9.0
built on mutual trust and respect
at all levels of the business.
For this reason, our senior
executives have to demonstrate
an ability to “build trust” as one
of 14 key behaviours required
in all tiers of our succession
management program.
During the year we continued
to promote the elimination of
workplace discrimination and
harassment by conducting a coordinated
information campaign
that involved facility-based
briefings, supported by workplace
posters and brochures distributed
in employees’ payslips.
PROFESSIONAL
DEVELOPMENT
Our structured succession
management program contributes
to business performance by
ensuring leadership continuity
and optimising the potential of
our managers. There are currently
690 participants in the program,
with females comprising 31 per
cent of this total. Participants
in the program are filling an
increasing proportion of senior
employment vacancies.
Major activities in 2004–05
included a review of the
succession management
program and strategy, a review
of all our leadership capabilities
to ensure alignment with future
business directions, and a
trial of emotional intelligence
development programs.
In 2004–05, we continued to roll
out the Development Pathways
project. While it is separate to
our succession management
program, Development Pathways
extends to all employees at Post
the opportunity for structured
development and assessment.
The initial focus of Pathways
has been on the development
of front-line managers across
the business. In the coming year,
the Pathways project will be
extended to middle managers.
We are also building an on-line
learning module for staff that
focuses on:
° corporate induction –
for new employees
° core business – which
requires learning about our
structure, ethics, values,
customers, competition
and innovation
° compliance – which includes
safety, wellbeing and
the prevention of injury,
discrimination, harassment
and bullying
° leadership and management
– which includes change
management, time
management, coaching and
performance management.
“For 52 years, Mr Cantlin has been
the Euroa postie, a feat recognised by
the Australia Day Honours, when he was
given a Medal of the Order of Australia
for services to the post.”
– Herald Sun, 14 February 2005
(Seventy-year-old Bill Cantlin has pedalled 35 kilometres every working
day for 52 years to deliver mail to the community of Euroa.)
Australia Post Annual Report 2004/05 Report of Operations
People
| 43 |

| 44 |
CORPORATE
SUSTAINABILITY
COMMUNITY
STAKEHOLDER
CONSULTATION
As a commercially focussed
government business enterprise
that delivers a community
service to all Australians, our
business requires a unique set
of procedures and monitoring
systems to ensure effective, timely
consultation with our stakeholders.
Various managers within Post are
responsible for ensuring timely
communication with employee
groups, unions, customers,
suppliers, community groups,
government representatives
and the media. We have four
main methods of receiving and
responding to customer and
community feedback. They are:
° customer contact centres
° customer research
° community consultation
procedures
° stakeholder engagement
bodies.
(For information on consultation
with our shareholder, see p. 50.)
Customer contact centres
Our state-based customer
contact centres (CCCs) undertake
a range of customer service roles,
including handling telephone
enquiries and complaints,
tracing mail items, responding
to advertised sales campaigns
and account management of
business customers. In 2004–05,
the number of inbound calls
handled by the CCCs increased
by 1.1 per cent to 4.8 million. This
year, the CCCs resolved customer
complaints within an average
of 5.2 days. A wide-ranging
operational and strategic review
of our CCCs was completed in
June 2005 and is expected to
lead to improvements in the
handling of customer enquiries
and complaints.
Customer research
We run an annual corporate
image monitor to measure
customer satisfaction with our
performance and to gain an
insight into customer perceptions
of our image and brand.
Conducted by research company
TNS Australia, this year‘s
Corporate Image Monitor involved
a survey of 1,491 randomly
selected residential customers
and a survey of 2,388 business
customers. The executive
summary of the report concludes:
“it will be difficult for Australia
Post to continuously improve on
such strong ‘net satisfied’ ratings
in both [residential and business]
markets”. The year-on-year
comparisons for key measures
in the Corporate Image Monitor
show a slight improvement in our
customers’ overall satisfaction
during the past year.
We also conduct annual research
interviews with our major
business customers to gain
insights into their perceptions
of our pricing, service delivery,
provision of information,
product and service range, and
relationships with their account
managers. Over 300 business
customers participate in this
survey, which is conducted both
in person and by telephone.
These interviews and surveys
have helped us identify issues
and rectify problems among
major business customers.
Community consultation
procedures
We remain mindful that the
closure or relocation of a Post
outlet has an immediate effect on
the local community. However,
changes to our retail network
are occasionally necessary
because of changing consumer
needs and trends. We have a
formal framework for handling
the community consultation
process relating to outlet closure
or relocation. The framework
involves communicating the
reasons for change, consulting
with local stakeholders,
and collating and analysing
community feedback.
We also have a community
consultation process for handling
the removal or relocation of
street posting boxes (SPBs). The
process is designed to make sure
Business customer satisfaction with Australia Post
2003/04 2004/05
Satisfaction with letter and postal services 96% 96%
Satisfaction with Post’s retail outlets 96% 97%
Satisfaction with customer contact centres 90% 98%
Overall satisfaction with Post 97% 97%
Residential customer satisfaction with Australia Post
2003/04 2004/05
Satisfaction with letter and postal services 97% 98%
Satisfaction with Post’s retail outlets 97% 97%
Satisfaction with customer contact centres 95% 95%
Overall satisfaction with Post 97% 98%
All results from the Corporate Image Monitor, conducted by TNS Australia.

community views are considered
before the relocation or removal
of an SPB. The process requires
notification of local citizens (via a
newspaper advertisement) and
consultation with local businesses
and the local Federal Member of
Parliament.
Stakeholder
engagement bodies
We engage with major customers
via a number of forums, but
our main point of consultation
for mail-related initiatives is
through the Major Mail Users
of Australia (MMUA). The
MMUA represents many of our
largest mailing customers, who
lodge bulk mail. This year, after
three years of development in
partnership with the MMUA and
the mailing houses, we launched
the Bulk Mail Partner program
(see p. 21). We also consult with
the Australian Direct Marketing
Association (ADMA) and
Australia Business and Specialist
Publishers (ABSP).
The Postal Services Consultative
Council (PSCC), which is chaired
by a member of the board
and represents private and
business customer interests,
advises Post on matters
relating to postal services and
improving communication with
its customers. The council met
three times in 2004–05. Council
members are: Peter McLaughlin,
Director, Australia Post (PSCC
Chairman); Brian Baulk, Divisional
Secretary, CEPU (Vic); Bill Blair,
former Group General Manager,
Queensland United Foods (NSW);
Colin Brideson, retired school
principal, board member of
Masonic Homes (SA); George
Etrelezis, Managing Director,
Small Business Development
Corporation (WA); Tom Greene,
Managing Director, Ortega
Publishing (NSW); Marie
McGrath-Kerr, Chairman, Post
Office Agents Association Ltd
(Tas); Margaret Smith AO, former
National President, Country
Women’s Association (NSW); and
Rob Tolmie, Managing Director,
Extrafilm (QLD).
For information on licensee
engagement, see p. 26.
HERITAGE
MANAGEMENT
As Australia’s oldest continuously
operating commercial
organisation, our business
has played a significant role in
the nation’s social and cultural
development. As a consequence,
we own a vast collection of
art, documents, photographs
and buildings with historical
merit or heritage value. Many
of our historic documents and
photographs have been lodged
with the National Archives of
Australia, the official repository
for Federal Government records,
under the Archives Act 1983.
We continue to maintain (and
exhibit items from) the National
Philatelic Collection, which is
Australia’s most significant
collection of philatelic-related
artwork. This year, Post and the
National Archives of Australia
officially agreed that Post would
continue to manage the collection
for the next 10 years, including
public access, conservation
and exhibition. During the year,
approximately 17,000 people
attended the three philatelic
exhibitions held at Melbourne’s
Post Master Gallery and an
estimated 130,000 people
attended touring exhibitions that
visited Perth, Murwillumbah,
Hobart, Swan Hill, Shepparton,
Launceston and Gymea (New
South Wales). Items from the
collection were also exhibited at
Pacific Explorer 2005 in Sydney.
During the year we addressed
all requirements related to the
preservation and conservation of
our heritage buildings, including
legislation set down in the
Environment Protection and
Biodiversity Conservation Act 1999
as well as state heritage registers
and local planning schemes. In
February 2005, we engaged the
services of one of Australia’s preeminent
conservation architecture
firms to prepare our heritage
strategy (which is due to be
completed by December 2005).
The same firm is also undertaking
a review of all of our buildings to
evaluate their architectural, social
and environmental merit. When
completed, the review will enable
the development of detailed
property-specific conservation
plans and provide a framework
for continuous monitoring
of our heritage conservation
responsibilities.
EMPLOYEES IN
THE COMMUNITY
We introduced the Australia Post
Community Champion Award
in January 2005 to recognise
the tireless work of staff,
contractors and licensees who
regularly volunteer for community
activities. Award winners are
profiled in our national staff
magazine Post Journal as well
as receiving monetary rewards
(see p. 37).
Many of our employees visited
local schools to talk about their
work during the year. These visits
promote reading and writing
skills, as well as awareness of the
dual commercial and community
role our business plays in
Australian society.
HUMAN RIGHTS
We observe all conventions
ratified by the Commonwealth
Government. Conventions and
covenants of particular relevance
to sustainability are those made
under the Universal Declaration
of Human Rights, including those
relating to:
° civil and political rights
° economic, social and
cultural rights
° elimination of all forms
of discrimination
° rights of the child.
Australia Post Annual Report 2004/05 Report of Operations
Community
| 45 |

| 46 |
COMMUNITY
INVESTMENT
We are committed to a multifaceted
program of community
investment that incorporates
sponsorships, donations, staff
fundraising campaigns and
the provision of resources and
logistical support to community
organisations. Our policy is
to invest in programs that are
congruent with our business
interests or that deliver tangible
benefits to the Australian
community. We also place an
emphasis on supporting events
and programs in rural and
regional Australia.
In 2004–05, we spent over
$3 million on sponsorship and
community investment programs.
The programs we supported fall
into six broad categories:
° education and literacy
° health
° the arts
° community groups
and events
° philanthropy
° environment
(for details, see p. 49).
“Dr Rhonda Galbally AO, chief executive
officer of ourcommunity.com.au, applauded
Australia Post for its vision in supporting
a project that could benefit all community
groups – regardless of their size or location.”
– Boorowa News, New South Wales, 3 March 2005
(For more on Post’s partnership with ourcommunity.com.au, see p. 22 and 47.)
Education and literacy
As a paper-based
communications business,
we have a natural interest in
the promotion of literacy and
education. Therefore, our efforts
in this area are many and varied.
We have been a major sponsor of
National Literacy and Numeracy
Week since 1999. We offer a
range of educational resource
material on the history and
operations of the postal service
for school students and teachers
via our website (at auspost.com.
au/education). We also promote
literacy by providing a Santa Mail
service, and helping Santa to reply
to over 120,000 letters written
by children each Christmas. This
year we released an educational
children’s book, called Postie Kate,
designed for use during school
visits by staff.
In regional areas, we have actively
supported a range of initiatives
with literacy and education as a
focus. These include the Books
in Homes Australia program in
regional New South Wales and
the “Phiggles the Flying Scientist”
program, which takes hands-on
scientific learning to children
living in some of Australia’s most
remote outback communities.
During the year we partnered
the University of South Australia
(one of our major customers)
to support a scholarship in
honor of Port Adelaide AFL
footballer Gavin Wanganeen.
The Gavin Wanganeen Indigenous
Scholarship is dedicated
to helping a promising but
disadvantaged Indigenous youth
gain a university degree.
Health
Our commitment to community
health starts with our own
employees. Our employee health
and wellbeing program, Get
a Balanced Life, is delivering
quality-of-life benefits to staff
through the provision of health
information, referral services and
support programs (see p. 42).
In the wider Australian
community, we remain a very
active supporter of the Breast
Cancer Network Australia
(BCNA). This year, we sponsored
BCNA’s “Field of Women”
event at the Melbourne Cricket
Ground in May and provided
delivery of over three thousand
BCNA resource kits to women
who were newly diagnosed
with breast cancer. Our strong
support of Queensland’s Mater
Foundation over the past eight
years was recognised in May with
the opening of the Australia Post
Allied Health Ward at Brisbane’s
Mater Children’s Hospital.
We sponsored research in a range
of medical fields, including cystic
fibrosis, melanoma and ovarian
cancer research. Our $25,000
national corporate sponsorship of
the Juvenile Diabetes Research
Foundation (JDRF) was supported
by hundreds of staff who raised
additional funds by participating
in the JDRF’s “Walk to Cure
Diabetes” in October 2004.

The arts
For the second year running,
we supported a major national
artistic project by way of our “gold
partner” sponsorship of Opera
Australia. Under this agreement,
we are also principal sponsor
of OzOpera, Opera Australia’s
touring and education arm,
which is responsible for regional,
community and school-based
projects and tours. OzOpera
toured to 18 venues in Western
Australia and the Northern
Territory this year; performed
before 80,000 primary school
students in New South Wales
and Victoria; and undertook
three special performances for
our staff and their families at the
Melbourne Parcel Facility, the
Sydney Parcel Facility and the
Sydney West Letters Facility.
We are a founding member of
the Australian Business Arts
Foundation and a supporter of
many artistic companies and
festivals, including the Bell
Shakespeare Company, the
Melbourne Theatre Company
and the Noosa Long Weekend.
Community groups
and events
We helped develop an Internetbased
resource, the Marketing
Media and Post Centre on
the Our Community website
(ourcommunity.com.au).
The centre will help community
groups build their media profile,
expand their supporter base
and increase the effectiveness
of their direct mail campaigns.
(Details of the sponsorship are
included in the Mail Marketing
section on p. 22.)
We also support community
organisations through the
provision of the Charity Mail
category of the letters service,
which offers charities a reduction
in the cost of their mailings.
As part of the annual release of
the Australian Legends stamp
issue, we are the principal
sponsor of Australia Day
luncheons held across the nation.
In 2005, the Legends award
recognised six of Australia’s
leading fashion designers.
We again sponsored the Stawell
Gift athletic carnival, a major
national event held in rural
Victoria. We also supported
a wide range of youth sport
programs, including a number
in rural and regional areas,
involving rugby league, Australian
Rules football, cricket, golf,
tennis and softball.
Philanthropy
Our major philanthropic
endeavour this year involved a
multi-faceted response to the
devastating Indian Ocean tsunami
that struck on Boxing Day 2004.
We made a corporate donation
of $250,000 to CARE Australia
and also accepted (via our retail
network) $1.46 million in public
donations to CARE Australia’s
tsunami appeal. In the immediate
aftermath of the disaster we,
together with Qantas, donated
the services of an Australian air
Express Boeing 727 plane to
fly urgently required aid to the
neediest areas of Indonesia. We
also offered technical support and
advice to postal administrations
affected by the disaster. On top
of these corporate initiatives, our
employees organised a range of
local facility-based fundraising
activities on behalf of tsunami
victims.
We continued to support a
number of Australian charities,
through a combination of staff
fundraising and corporate
donations. In particular, staff in
Queensland and in Melbourne’s
Headquarters raised $60,000 as
part of our Be Seen in Red and
Green charity day. The money
raised was donated to the Royal
Flying Doctor Service, The
Smith Family and the Starlight
Foundation. For the sixth year in
a row, we sponsored The Alannah
and Madeline Foundation, a
charity devoted to supporting
child victims of violent crime and
sudden family loss.
COMMERCIAL
SPONSORSHIP
Our sponsorship of the Australian
Olympic and Paralympic teams
at the Athens Games provided
commercial opportunities,
especially through issuing
17 Australian Gold Medallist
stamps, which became popular
mementos of the Athens
Olympics.
During the year, we also became
an official sponsor of the
Melbourne 2006 Commonwealth
Games, where we will be
a partner of the organising
committee in handling ticketing,
logistics, courier and postal
services, as well as sponsoring
the Australian team.
We continued our sponsorship
of the Australian Open tennis
tournament.
All commercial sponsorships
are required to deliver positive
return on
investment and are
not considered as community
investments.
Australia Post Annual Report 2004/05 Report of Operations
Community
| 47 |

| 48 |
CORPORATE
SUSTAINABILITY
ENVIRONMENT
LEGISLATIVE
COMPLIANCE
Because our business operates
in all Australian states and
territories, we keep a watching
brief over environmental
legislation and regulations in all
state and Federal jurisdictions.
We elect to take the most
stringent of legislation as our
minimum standard, to ensure
that we go beyond compliance.
Environmental audits of our larger
facilities are undertaken every two
years. This year we audited 31
facilities, including all of our major
facilities, and no material issues
were identified. In 2004–05, there
were no environmental penalties
applied to our business in any
jurisdiction.
Following an external
environmental review conducted
in November 2003, we have been
redeveloping our Environment
Management System (EMS)
to take a more risk-based
approach to the management
of environmental issues.
While most of our environmental
programs are still centrally
managed, the new EMS will
enable each facility to participate
in monitoring and managing its
own risks.
Our major environmental risk
arises from refuelling centres
and underground storage tanks
located at our major mail facilities.
A review of our fuel management
and storage equipment was
conducted in 2003–04 and
recommended the removal
of refuelling equipment at
11 out of 19 sites.
This year we hired an engineering
company, ARUP Pty Ltd, to
manage the decommissioning of
fuel storage tanks and refuelling
facilities at these 11 sites as well
as the upgrading of refuelling
facilities and generator tanks
at the eight sites that are being
retained. ARUP conducted
detailed site inspections during
the year and the works are
scheduled to be complete by
July 2007. A minor fuel leak
was detected at one facility
during the site inspections,
so the tanks were immediately
decommissioned and emptied
and the adjacent pipes and
pits were cleaned.
THE SUSTAINABLE
USE OF RESOURCES
Our major corporate
environmental impacts derive
from the large amount of energy
required to power our 1,273
facilities (and the equipment
contained in them) and the fuel
required to sustain our fleet of
10,561 vehicles.
In the 2004 calendar year*, our
business consumed 208,973,387
kilowatt hours of electricity,
110,798,270 megajoules of
natural gas, 24,463,580 litres
of diesel, and 5,952,080 litres
of petrol. Our operations also
created 203,739 cubic metres
of waste, of which 39,790 cubic
metres were recycled.
We developed a national energy
management program this year
that will introduce energy-efficient
changes to building infrastructure
and reduce our energy usage over
the next three years. Initiatives
will include the introduction of
motion detectors, light sensors,
timers, power factor correction
equipment, voltage reduction
systems and triphosphor
lamps. With this program now
established, we expect to
reduce our corporation’s energy
consumption by 10 per cent
over the next three years.
(* Reporting for Greenhouse
Challenge is based on calendar
year, not financial year.)
REDUCING EMISSIONS
Over the last eight years, we have
been an active, voluntary member
of the Federal Government’s
Greenhouse Challenge program.
Our initiatives during that period
have reduced our greenhouse gas
emissions by 98,578 tonnes of
carbon dioxide (CO2) equivalent.
In the 2004 calendar year, our
Greenhouse Challenge initiatives
reduced our greenhouse gas
emissions by 17,150 tonnes of
CO2 equivalent. Our corporation’s
greenhouse gas emissions for
2004 totalled 339,050 tonnes of
CO2 equivalent.
Our energy management program
is our most important new
initiative in the area of emissions
reduction. But we are also actively
investigating other opportunities
to reduce our greenhouse
emissions, including the
introduction of energy-efficient,
Tonnes of CO2 per $million of revenue
Note: The reporting period for Greenhouse
Challenge data changed in 2003. As a result,
the 2003 and 2004 information in this graph
is based on data from the calendar year
(rather than the financial year).

flat-screen computer monitors
to replace existing LCD monitors.
The rollout of this program, which
is expected to be completed by
the end of 2005–06, involves
replacing 10,500 computers
across all administrative areas
of the business.
We are also undertaking a
program to remove all air
conditioning systems that use
ozone-depleting substances
and the last of these air
conditioners will be removed
in the coming year.
In conjunction with Shell Australia,
we conducted a trial at the
Dandenong Letters Centre in
Melbourne this year to chemically
assess the quality of engine oil at
various stages during the life of a
truck. The 12-month trial, involving
58 trucks, proved that the time
between oil changes could be
extended without reducing
engine performance.
By extending these oil changes,
we can potentially cut oil
usage in our entire truck fleet
by half, saving approximately
22,000 litres of oil per year. Trial
results have been given to the
vehicle manufacturers and we
are awaiting their approval to
implement the proposed new oil
change intervals, under existing
vehicle warranties.
BIOLOGICAL DIVERSITY
Using data from the Department
of Environment and Heritage, we
have reviewed all of our facilities
to determine whether they might
have an adverse impact on local
endangered species. Most of our
facilities are located in developed
shopping precincts, where
they pose little threat to listed
endangered species.
During the year, we conducted
site inspections at all facilities
located near waterways, parks
and protected areas. One minor
issue (relating to weed infestation
threatening a plant species) was
identified during the inspections
and actions were taken to
remove the threat.
ENVIRONMENTAL
STEWARDSHIP
We continued to offer the
Australian public convenient
access to recycling facilities
for Christmas cards and printer
cartridges as part of our
partnership with environmental
group Planet Ark.
Under the Cards 4 Planet Ark
campaign, our customers can
recycle their Christmas cards
by placing them in a specially
designed envelope and
depositing them at their local Post
outlet or in street posting boxes.
We collected 7.2 million cards
this year, which were recycled
for use as cardboard packaging
or tissue products.
Our customers also deposited
215,000 used printer cartridges
and toner bottles at Post outlets
as part of the Cartridges 4 Planet
Ark campaign. The majority
of toner cartridges collected
are returned to the original
manufacturers for their own
remanufacturing or component
recovery programs. Our
contribution to the Cartridges
4 Planet Ark program saved
86 tonnes of print consumable
waste from going into landfill
during the 2004 calendar year.
IMPACT OF PRODUCTS
AND SERVICES
As a member of the National
Packaging Covenant since 2002,
we have been actively decreasing
the weight of our packaging
products while increasing their
recyclability and recycled content.
Over 70 per cent of Post’s
packaging products can now
be reclaimed at the end of their
useful life.
This year we introduced 15 per
cent of recycled content into our
bubble wrap products and the
caps used on our mailing tubes
(the tube itself is made from 100
per cent recycled fibre). Padded
bags now contain a minimum of
60 per cent recycled fibre, and
there is 20 per cent recycled
plastic in the bubble lining of
those bags. Our mailing boxes
contain 66 per cent recycled fibre.
We introduced a new Winepak
product this year as an alternative
to the existing polystyrene
and polypropylene Winepaks.
The newly developed cardboard
Winepak is reusable, is made
from recycled content and can
itself be recycled at the end
of its useful life.
Express Post and Parcel
Post satchels are made of
polyethylene, a material that is
technically recyclable but can
not yet be placed in domestic
recycling streams. We are
investigating alternative materials
but, as yet, no suitable alternative
has met operational requirements.
The introduction of a new
process for recycling single-use
international mailbags resulted in
a reduction of some 45 tonnes of
waste going to landfill this year.
For more information, see the
case study on p. 38–39.
We are continually identifying
new ways of reducing the
environmental impact of our
services. Before purchasing a
new type of vehicle for our fleet,
we always trial different types
of vehicles to assess their fuel
efficiency. Any fleet purchases
in the coming year will have to
comply with the Euro 4 vehicle
emission standards (subject to
the availability of these vehicles
in Australia). Where Euro 4
vehicles are not available, Euro
3 vehicles, which are designed
to operate with the new lowsulphur
diesel fuels, are still more
environmentally advanced than
traditional vehicles. To support
this change, all of our remaining
refuelling facilities now store
the low-sulphur diesel fuel.
Australia Post Annual Report 2004/05 Report of Operations
Environment
| 49 |

| 50 |
CORPORATE
SUSTAINABILITY
ECONOMY
SHAREHOLDER
RELATIONS
AND VALUE
As a wholly owned government
business enterprise, our
relationship with our shareholder
is governed by the particular
requirements of the Australian
Postal Corporation and
Commonwealth Authorities
and Companies Acts. These
are detailed in the Corporate
Governance section of our
website (auspost.com.au).
The most significant element in
the relationship is the corporate
plan. Submitted in June each
year, the plan sets out the key
strategies and targets for the
following three-year period. The
shareholder has 60 days from
receipt of the plan to direct any
change to its financial targets or
its community service obligation
strategies and policies. Progress
against the plan is subject
to formal quarterly reporting
and subsequent review with
shareholder departments.
We also continuously disclose
to our shareholder any matters
relating to the proposed formation
of a company, trust or joint
venture, as well as any proposals
for significant acquisitions or
divestments.
Dividend recommendations are
made to shareholder ministers
twice each year, in February
(interim) and August (final). In
light of the corporation’s financial
position and consistent with
normal commercial practice,
the board decided this year to
increase the target dividend
ratio from 60 per cent to 75
per cent of after-tax profits. As
a result, dividends payable from
the 2004–05 result will be
$286.2 million (compared with
$220.9 million in 2003–04).
RETURN ON
INVESTMENT
All of our return-on-investment
outcomes were positive in
2004–05.
° Revenue per dollar of fixed
assets was maintained at
2.35 despite rises in property
asset valuations.
° Capital investment (including
business acquisitions) of
$225.1 million exceeded the
annual depreciation charge
of $185 million.
° Profit after tax increased by
1 per cent to $374.9 million
($371.1 million last year).
° Return on capital (pre-tax) was
26.6 per cent, well above the
comparable weighted average
cost of capital of 11 per cent.
INTEGRATION OF
SUSTAINABILITY
INTO COMMERCIAL
DECISIONS
All business cases involving
an outlay of over $250,000
must include an appraisal of
environmental, social, economic
and risk impacts (in addition to
the financial appraisal). All such
business cases also require
endorsement by representatives
from the ESD working party and
from the Risk Management Unit
prior to project approval.
CREDIT RATING
Every year, ratings agency
Standard & Poors conducts a
detailed review of our financials
to establish a credit rating.
We maintained our AAA rating
this year (which we have held
consistently since the initial rating
in 1994).
ASSET PROTECTION
Protection of assets – including
cash, long-term fixed assets,
intellectual property and the Post
brand – is crucial for sustainable
revenue generation and the
growth of our business.
Revenue protection in all three
business portfolios is supported
by a formal program overseen by
the Revenue Collection Steering
Committee and managed by the
Revenue Collection Group. We
introduced several key initiatives
this year to improve our revenue
collection processes, including
closer co-operation with industry
partners in the letters business,
implementing technology to
more effectively assess parcels
revenue and enhancing revenue
collection for mail lodged in street
posting boxes.
Fixed assets are protected by
an asset recording process at
each work centre as well as
an annual stocktake process.
Management of stock, cash and
related items in post outlets is the
responsibility of postal managers
and is carried out in accordance
with the Financial Integrity Control
system. In addition to normal
reconciliation processes, regular
stock checks are undertaken to
protect the business from highrisk
losses.
Intellectual property is protected
by a formal policy administered
by the Legal Services Unit and
the integrity of the Post brand is
protected by a brand management
system administered by Corporate
Public Affairs.

COMPETING FAIRLY
AND VIGOROUSLY
Under the Australian Postal
Corporation Act 1989, letters
under 250 grams are reserved
to Post unless they are carried
for a price more than four times
the basic postage rate. All of the
other goods and services we
offer are sold in fully competitive
markets, and they provide
the majority of our business’s
revenue and profit. The graph
below shows how an increasing
proportion of our profit is derived
from the sale of products and
services in competitive markets
(i.e. non-reserved services).
To ensure that costs are fairly
allocated to all products and
services, our costing system
is periodically subjected to
independent, expert scrutiny.
The last such review (by
Trowbridge Consulting in
2000) concluded that the
costing system “is an effective
methodology for regulatory and
compliance purposes”.
From 2004–05 onwards, our
financial results will be subject to
an additional audit by an external
auditor as part of the Australian
Competition and Consumer
Commission’s assessment of
whether any cross-subsidy exists
from the reserved service to
products and services sold in
fully competitive markets. (For
information on trade practices
compliance, see p. 55.)
Contribution to economic development
We manage our commercial operations to provide continuity, economic prosperity and
growth for the business and our stakeholders. The table below contains a summary of
our major economic outcomes.
2003/04 2004/05
Revenue $4,161.1m $4,323.5m
Australian $4,048.1m $4,206.6m
export $113.0m $116.9m
Direct employment 36,153 35,974
full-time employees 26,019 25,851
part-time employees 9,030 8,953
other employment 1,104 1,170
Labour productivity growth 3.4% 2.6%
Payments
to employees $1,631.7m $1,742.4m
for goods and services $1,584.8m $1,619.9m
for capital assets and business acquisitions $595.1m $225.1m
Taxes and rates paid $526.2m $527.4m
Commonwealth $414.9m $413.8m
state and local government $111.3m $113.6m
Cost of community service obligations $79.1m $79.4m
Small business relationships 9,095 9,032
Licensed post offices 2,982 2,979
metropolitan 1,275 1,274
rural and remote areas 1,707 1,705
Community postal agencies 633 632
metropolitan 36 34
rural and remote areas 597 598
Mail contracts 5,480 5,421
New services and products introduced
in last two years
$119.8m $263.2m
Outlets with electronic banking facilities 3,048 3,078
metropolitan 1,787 1,793
rural and remote areas 1,261 1,285
Basic postage rate (ranking in OECD) 4th lowest 4th lowest
Revenue foregone through letter price restraint
(compared with CPI)
Profit ($ million)
last 5 years $992m $1,337m
last 10 years $2,872m $3,113m
Delivery points (at 30 June) 9.68m 9.87m
Shareholder value
profit after tax $371.1m $374.9m
dividends declared $220.9m $286.2m
Year
Australia Post Annual Report 2004/05 Report of Operations
Economy
| 51 |

| 52 |
CORPORATE
GOVERNANCE
General
Australia Post has in place
a comprehensive system
of corporate governance
practices designed to provide
appropriate levels of disclosure
and accountability.
These practices derive
principally from the provisions
of the Australian Postal
Corporation (APC) Act 1989, the
Commonwealth Authorities and
Companies (CAC) Act 1997 and
the Governance Arrangements
for Commonwealth Government
Business Enterprises (1997).
They are also consistent with
the ASX Corporate Governance
Council’s best practice
recommendations, in so far
as they can be applied to a
government business enterprise
such as Post. A dedicated
corporate governance section
on the Australia Post website
(auspost.com.au) provides
a detailed description of the
corporation’s governance
framework and associated
practices, with hyperlinks to
key documents.
Shareholder ministers
The Minister for Communications,
Information Technology and
the Arts, Senator the Hon
Helen Coonan, has portfolio
responsibility for Australia
Post. Under a dual shareholder
model, overall responsibility
for the enterprise is exercised
jointly with Senator the Hon Nick
Minchin, Minister for Finance and
Administration.
The board
The board of Australia Post
comprises up to nine directors,
eight of whom serve in a nonexecutive
capacity. The managing
director is the sole executive
director. Non-executive directors
are appointed by the Governor-
General on the nomination of the
portfolio minister. Appointments
can be for up to five years and
reappointment is permissible.
Current practice is for terms of
appointment to be generally of
three years’ duration.
Before nominating a person for
appointment, the minister is
required to consider the balance
of expertise on the board and also
to consult with the chairman.
The managing director is
appointed by the board.
Board membership during
2004–05 was:
Linda Nicholls (Chairman)
David Mortimer (Deputy Chairman)
Graeme John (Managing Director)
Mark Birrell
Margaret Gibson
Peter McLaughlin
Sandra McPhee
Edward Tweddell
Ian Warner.
Profiles of each director and
details of their skills, experience
and expertise are provided on
p. 58–59.
Role of the board
The board is accountable
for Australia Post’s overall
performance and for ensuring
that the corporation performs its
functions in a manner consistent
with sound commercial practice.
Directors set the corporation’s key
objectives and strategies through
a rolling three-year corporate
plan, which is submitted annually
to shareholder ministers.
Progress against the plan is
reported quarterly. Ministers
and their departments are also
kept informed on an ongoing
basis about developments of
significance.
Board committees
Separate audit and human
resources committees assist
the board in the discharge
of its responsibilities.
Audit Committee
The Audit Committee provides a
forum for regular communication
between the board and the
corporation’s auditors, both
external and internal. Made
up entirely of non-executive
directors, its membership during
2004–05 was:
David Mortimer (Chairman)
Margaret Gibson
Sandra McPhee
Edward Tweddell.
The Audit Committee Charter,
which is reviewed annually by
the board, is accessible in the
corporate governance section
of the Australia Post website
(auspost.com.au). The committee
meets at least four times a
year, focussing in particular on
the areas of financial reporting,
risk management and internal
controls. Among other things, it
is responsible for reviewing:
° annual financial statements
before their consideration and
adoption by the board
° clarity and quality of the
corporation’s financial policies,
practices and disclosures
° internal and external
auditor plans, reports
and performance
° significant existing and
emerging risks and
mitigation activities
° the adequacy and effectiveness
of internal controls
° compliance with laws
and regulations
° related party transactions.
The external and internal auditors
attend all Audit Committee
meetings, as do the managing
director, chief finance officer
and group financial controller.
A key feature at the start of each
committee meeting is a private
session with the external auditors,
without management present.

The committee also meets
separately with both the
chief finance officer and the
internal auditor without other
management present.
All directors receive copies of
committee meeting papers and
minutes, and each director has
the right to attend meetings,
whether or not a member
of the committee. Meeting
attendance details for 2004–05
are provided in the chart on p. 55.
Human Resources Committee
Incorporating the functions of both
a nomination and remuneration
committee, the Human Resources
Committee addresses major
policy, structural and remuneration
issues including:
° recruitment, selection and
succession planning
° executive remuneration
° culture and ethics
° learning and development
° terms and conditions
of employment
° organisational structure.
Membership of the committee
during 2004–05 was:
Mark Birrell (Chairman from
January 2005)
Linda Nicholls (Chairman to
December 2004)
Graeme John
Peter McLaughlin.
The Human Resources Committee
Charter is accessible in the
corporate governance section
of the Australia Post website
(auspost.com.au). Meeting
attendance details for 2004–05
are provided in the chart on p. 55.
Board performance
A comprehensive board
performance appraisal process
was begun after the end of the
reporting period. Focussing on
both board and board committee
effectiveness, this is the first
such review to be conducted
with external facilitation. It was
scheduled to conclude by the end
of the September quarter.
Director induction/education
A comprehensive induction
program is in place to provide
newly appointed directors with
an understanding of their role and
responsibilities, and to expose
them to key features of the
business, including its operations,
policies and strategies. Additional
supplements are tailored to meet
an individual director’s particular
needs or interests. Ongoing
director education is provided
by way of periodic presentations
on matters of current interest.
Independent
professional advice
Directors have the right, with
the agreement of the chairman,
to obtain at the corporation’s
expense relevant independent
professional advice in connection
with the discharge of their
responsibilities.
Conflict of interest
Directors who may have a
material personal interest in a
matter to be considered by the
board or a board committee are
required to make the nature of
that interest known and must not
be present while the matter is
being considered. Details of such
disclosures are recorded in the
minutes of the meeting. Where
an issue to be considered by the
board or a board committee is
thought to present a director
with a potential conflict of interest,
that director will not be provided
with the related material in the
first instance.
Code of Ethics
Australia Post seeks to conduct its
business with integrity, honesty
and fairness and in compliance
with all relevant laws, regulations,
codes and corporate standards.
A board-approved Code of
Ethics sets out clearly the ethical
standards that are expected of
both directors and employees in
their dealings with customers,
suppliers, the corporation and
each other.
Any action or omission that
contravenes the Code of Ethics
constitutes misconduct and
is subject to counselling or
disciplinary action appropriate
to the circumstances and
seriousness of the behaviour.
Disciplinary action may
include dismissal.
Where “whistleblowing” is
involved, specific processes
are in place to ensure that
the employee (or employees)
concerned are protected from
discrimination or intimidation.
A senior management Ethics
Committee has been formed
to oversee the application
of the Code of Ethics across
the organisation.
Director remuneration
Remuneration for Australia
Post’s non-executive directors is
determined independently by the
Commonwealth Remuneration
Tribunal. For 2004–05 this was
as follows:
Chairman – $130,000
Deputy chairman – $72,500
Directors – $65,000
Audit Committee chairman
– $15,000
Audit Committee member
– $7,500.
Details of individual remuneration
amounts received in 2004–05
by each non-executive director
are provided in Note 25 to the
financial statements on page
81 of this report.
Remuneration levels for Holders
of Part-Time Public Offices
(including Australia Post nonexecutive
directors) were
increased by the Remuneration
Tribunal by 4.1 per cent, with
effect from 1 July 2005.
Executive remuneration
The board Human Resources
Committee is responsible for
reviewing and recommending
to the board the remuneration
arrangements for the managing
director. These arrangements
are then implemented in
accordance with remuneration
policy and procedural
arrangements approved by the
Remuneration Tribunal.
Australia Post Annual Report 2004/05 Report of Operations
Corporate governance
| 53 |

| 54 |
In undertaking this role the
committee has adopted a set
of principles approved by the
Remuneration Tribunal which
are designed to link the level of
remuneration with the financial
and operational performance of
the corporation.
Remuneration arrangements
for other senior executives are
reviewed and determined by the
managing director.
Advice is periodically sought
from independent specialised
remuneration consultants on:
° the structure of remuneration
packages
° the quantum of increases that
apply in other comparable
Australian corporations.
On the basis of this advice,
the managing director ensures
that payments to other senior
executives are in line with market
practice and are competitively
placed to attract and retain the
necessary talent for the work
required by these roles.
Incentive rewards for the
managing director and other
senior executives for meeting
or exceeding specific key annual
business objectives are linked
to the annual business plan
at a corporate and individual
level. Measures and targeted
achievement levels are reviewed
each year to reflect changes
in the business priorities for
the forthcoming year. The
measures include financial,
customer satisfaction, employee
engagement and other individual
measures that support the key
business objectives. Before a
reward is payable, a threshold
must be reached, according
to predefined measures.
Both the managing director
and other senior executives
are employed under individual
contracts of employment that are
not limited to a specific duration.
Continuation of employment is
subject to ongoing satisfactory
performance. Where Australia
Post terminates the managing
director’s or other senior
executive’s employment for
reasons other than performance or
misconduct, they are entitled to:
° in the case of the managing
director, 60 days’ payment
in lieu of notice and a
termination payment of 1.5
times annual base salary; and
° for other senior executives,
90 days’ payment in lieu of
notice and a termination
payment calculated on four
weeks for each of the first
five years of employment
and three weeks for every
year thereafter to a maximum
of 84 weeks, including the
payment in lieu of notice.
All of the above payments are
based on annual base salary.
Details of the managing director’s
remuneration for 2004–05 are
provided in Note 25 to the
financial statements on page
81 of this report. Remuneration
details for the other key
executives with the greatest
authority for the management of
Australia Post are provided in Note
26 to the financial statements on
pages 82–83 of this report.
External audit
Under section 8 of the CAC Act,
the Auditor-General inspects and
audits the accounts and records
of the corporation’s financial
transactions and assets, reporting
to parliament, the minister and
the board. The Auditor-General
also audits and reports on
compliance with the performance
standards prescribed for Australia
Post under section 28C of the
APC Act. Ernst & Young has been
retained by the Australian National
Audit Office to assist in both of
these assignments.
The board has adopted a
comprehensive set of audit
independence principles
in relation to the external
auditors. Among other things,
these principles exclude the
engagement of the external
auditors for the provision of
certain non-statutory audit-related
services such as internal auditing,
taxation planning, treasury policy
and operations, and business and
strategic planning. In addition,
the senior audit partner on the
corporation’s account is to be
rotated at least every five years.
Internal audit
Australia Post maintains an
independent internal audit
service to assist the corporation
meet its objectives by bringing a
systematic, disciplined approach
to evaluating and improving the
effectiveness of risk management,
control and governance processes.
The internal audit service is
authorised by the board to direct a
comprehensive program of internal
auditing within the corporation
with full and unrestricted access to
all functions, property, personnel
records, accounts, files and other
documentation.
The internal audit work program
is subject to annual endorsement
by the Audit Committee, with
the results, progress and
performance regularly reviewed
by both the committee and the
external auditors. The internal
auditor also meets privately
with the Audit Committee at
each meeting, without other
management present.
Risk management
The board oversees a
comprehensive risk management
policy framework covering all
significant business risks and
strategic considerations. The
underpinning processes, which
seek to identify, analyse, assess
and treat these risks, are consistent
with the principles of the relevant
Standard (AS/NZS 4360).
As part of the corporation’s risk
management framework all
business units report annually
to an internal Risk Management
Committee on their existing
and emerging risks, associated
mitigation strategies and progress
against their implementation.
Outcomes are reported to the
Audit Committee.
Risk identification, measurement
and mitigation strategies are
included in business-related
proposals considered by the
board. There are also a number
of programs in place to manage

isk in specific areas such as
fraud, the environment, injury
prevention and management,
legislative compliance, fire safety
and emergency procedures and
business continuity planning.
The potentially adverse financial
impacts associated with
catastrophic risk exposures
are limited by the purchase of
appropriate insurance cover.
The ongoing effectiveness of the
corporation’s risk management
framework is reviewed annually
by the board. Also, to ensure the
maintenance of best practice,
independent external reviews
of risk management across the
corporation are commissioned
periodically. The most recent such
review, completed in December
2004 by Deloittes, confirmed that
Australia Post’s risk management
processes compared favourably
with “better practice” in other
comparable organisations.
Internal control framework
The corporation’s internal control
framework covers multi-faceted
components that apply across
intersecting control categories,
control objectives, control
activities and business units
and processes.
The framework is consistent
with the model defined by
the Committee of Sponsoring
Organisations (COSO) of the
Treadway Commission, with
strategic, financial, operational
and compliance elements
established across the COSO
internal control layers. These
include financial planning and
reporting, capital expenditure
appraisal procedures, authority
delegation, due diligence
examination and procurement
contract tendering, senior
management review forums,
extensive polices and
procedures, expenditure gating,
external performance reporting
and corporation-wide risk
management practices. Financial
reporting and business system
integrity are assured through
the maintenance of detailed
information technology and
operating procedure manuals.
Consistent with the ASX
Corporate Governance Council’s
best practice recommendation
(Principle 7), before adopting the
2004–05 financial statements
the board received written
confirmation from the managing
director and the chief finance
officer that the integrity of
the statements was founded
on a sound system of risk
management and internal
compliance and control.
Treasury
A comprehensive and prudent
treasury policy has been
established to manage liquidity,
interest rate, foreign exchange
and fuel price risk. Reviewed by
the board at least annually, the
policy provides for the use of
hedging instruments to protect
the corporation against adverse
movements in interest rates and
minimise the impact of volatility
in foreign exchange rate and oil
price movements. The aim is
to ensure reasonable certainty
against budget estimates and
in the cost of imported capital
equipment and other supplies.
Established treasury procedures
incorporate risk control principles
of segregation of duties, dual
control access and independent
reconciliations. A Treasury
Risk Management Committee
determines appropriate hedging
strategies within the policy
parameters. Treasury activities
are reported regularly to the
board and are subject to annual
review by auditors.
Corporate security
The Corporate Security Group
has responsibility for ensuring
the integrity of the mail and the
safety of Post’s personnel and
other assets. This specialist
group maintains close internal
working relationships with the
legal, risk and audit areas, as well
as externally with international,
national, state and territory law
enforcement authorities.
Trade practices
To facilitate compliance with
the relevant legislation Post
has a dedicated trade practices
compliance officer responsible
for a national trade practices
compliance program. In addition
to undertaking comprehensive
biennial trade practices training,
the corporation has in place
a detailed formal clearance
process for all promotional
and advertising material.
Privacy
Directors’ attendance at meetings, 2004/05
The corporation also has a
full-time chief privacy officer
responsible for the maintenance
of a national privacy compliance
program. Detailed policies,
processes and procedures are in
place to safeguard customers’
personal information and to
foster a corporate culture that
values privacy.
BOARD
HUMAN
AUDIT
RESOURCES
COMMITTEE
COMMITTEE
(a) (b) (a) (b) (a) (b)
Linda Nicholls 11 11 6 5
David Mortimer 11 10 4 4
Graeme John 11 11 6 6
Mark Birrell 11 11 6 6
Margaret Gibson 9 9 3 3
Peter McLaughlin 11 11 6 5
Sandra McPhee 11 11 4 4
Edward Tweddell 11 11 4 4
Ian Warner 9 9
(a) Number of meetings held while a director/committee member
(b) Number of meetings attended
Australia Post Annual Report 2004/05 Report of Operations
Corporate governance
| 55 |

| 56 |
ORGANISATIONAL
STRUCTURE
Australia Post is comprised of the following
board and management structure.
The board sets the corporation’s objectives, strategies and policies. Led by a non-executive chairman,
the board comprises up to eight non-executive directors and one executive director (the managing director).
The managing director
is responsible for the day-to-day
management of the corporation
and is also a member of the board.
The senior management team (outlined below) is responsible for key business and support functions.
Mail &
Networks
Commercial
Products &
customised
services
Finance
Corporate
Infrastructure
Services
Business
Support
The executive committee (pictured right) is the peak body
of senior managers. It advises the managing director on operational
matters and is responsible for the formulation of strategies and
policies for consideration by the board.
General Manager Jim Marshall
Managers: National Logistics Terry Sinclair Major Change Peter McBride
Finance & Business Performance Les Pradd Human Resources Peter Rogan
Communications Ian Cropper Business Planning Mike Forster
State M&ND Managers: NSW/ACT Terry Taylor Vic/Tas Steve Ousley
Qld William Wilson SA/NT Gary Prior WA Mike Owen
General Manager Bill Mitchell
Group Managers: Retail Services Amber McDougall Retail Channels and Infrastructure Elizabeth Button
Financial Services Terry Stephens Commercial Services Elizabeth Grant Philatelic Noel Leahy Parcels Chris Koo
Managers: Commercial Development Karen Ryan-Cowell Human Resources Peter Godfrey
State Commercial Managers: NSW/ACT Mark Warren Vic/Tas Peter Lavis
Qld Helen Brodie SA/NT Bevan Adams WA David Eaton
Letters Group Manager Allan Robinson
International Group Manager Peter Morrison
Post Logistics General Manager Alec Ceselli
Courier and Mailroom Services General Manager Geoff Cook
Geospend General Manager Vicki Miller
EDI Post Manager (Acting) Frank Forgione
Chief Finance Officer Peter Meehan
Group Financial Controller Michael Tenace
Group Managers: Finance, Commercial Brian McCraith Superannuation Angus McKenzie
Financial Strategy and Sustainability Alan Marshall Taxation Peter Dimech
Product and Commercial Analysis Drew Downie
Shared Services General Manager (Acting) Arthur Skipitaris
Managers: Treasury Errol Dorfan Finance, Corporate Infrastructure Services Martin Lobb
General Manager Mark Howard
Group Managers: Technology Services Andrew Howlett Corporate Sourcing Rob Loats
Corporate Real Estate Adam Treffry
Managers: Refresh Project Jill Malyaris / Denise Dyer Human Resources Kim Maybery
Human Resources Group Manager Rod McDonald
Group Executive Officer David Barker
Corporate Secretary Michael McCloskey
Corporate Strategy Group Manager Shane Morris
Corporate Public Affairs Group Manager Stephen Walter
Corporate Audit Group Manager David Mallard
Corporate Security Group Manager John Sharp
International Treaty and Policy Group Manager Chris Grosser
General Counsel vacant

EXECUTIVE
COMMITTEE
Graeme John
Managing Director
Jim Marshall
General Manager,
Mail & Networks
Division
David Barker
Group Executive
Officer
Michael
McCloskey
Corporate Secretary
Bill Mitchell
General Manager,
Commercial Division
Elizabeth Grant
Secretary to
the Executive
Committee;
Manager, Board
and Shareholder
Liaison
Stephen Walter
Group Manager,
Corporate Public
Affairs
Mark Howard
General Manager,
Corporate
Infrastructure
Services Division
Rod McDonald
Group Manager,
Human Resources
Shane Morris
Group Manager,
Corporate Strategy
Peter Meehan
Chief Finance Officer
Suzanne Stewart
Manager,
Strategic Planning
Australia Post Annual Report 2004/05 Report of Operations
Organisational structure
| 57 |

| 58 |
BOARD OF
DIRECTORS
Linda B Nicholls BA (Econ) MBA (Harvard) Chairman (non-executive)
Linda Nicholls is a corporate adviser and director of a number of leading Australian
companies and organisations. She was appointed chairman of Australia Post in
September 1997 (current term expires in September 2006). Mrs Nicholls is deputy
chairman of Healthscope and a director of St George Bank, Perpetual Trustees
and the Sigma Pharmaceutical Group.
David A Mortimer AO BEcon (Hons), FCPA Deputy Chairman (non-executive)
David Mortimer has executive experience in the banking, finance and transport
industries. He was appointed deputy chairman of Australia Post in June 2001 (current
term expires in June 2008). Mr Mortimer was formerly managing director and chief
executive officer of TNT. He is chairman of Citect Corporation and Crescent Capital
Partners and a director of Virgin Blue Holdings, Petsec Energy, Adsteam Marine,
Macquarie Infrastructure Investment Management, Leighton Holdings and Arrow
Pharmaceuticals.
Graeme T John AO FCILT Managing Director
Graeme John joined Australia Post as Chief Manager National Operations in 1990 and
was appointed managing director of the corporation in 1993. Mr John is a director and
alternative chairman of Australian air Express and Star Track Express and a director of
Sai Cheng Logistics based in China. He is also a commissioner of the Australian Football
League, a fellow of the Chartered Institute of Logistics and Transport, and a member
of the Business Council of Australia, the Australian Institute of Company Directors and
the Committee for Melbourne.
Mark A Birrell LLB, BEc, FAIM Director (non-executive)
Mark Birrell has had a successful career in public policy and the law. He was
appointed to the Australia Post board in August 2003 (current term expires
in August 2006). Mr Birrell is a special counsel and consultant with the legal firm
Minter Ellison. He is a former cabinet minister in Victoria and government leader
in the Legislative Council.

Margaret M Gibson LLB (Hons) BCom Director (non-executive)
Margaret Gibson has played a senior role in the transformation of a number of
businesses in a range of industries over the past 20 years. She was appointed to the
Australia Post board in September 2004 (current term expires in September 2007).
Mrs Gibson was a member of the Board of Partners of PricewaterhouseCoopers and
is a director of the Institute of Magnetic Resonance Research.
Peter A McLaughlin BCom (Hons) Director (non-executive)
Peter McLaughlin has had a distinguished career as an economic adviser and human
resources consultant. He was appointed to the Australia Post board in November 1997
(current term expires in November 2006). Mr McLaughlin is a former executive vice
president Asia Pacific for the Empower Group and former executive director of the
Business Council of Australia. He was also first assistant secretary of the departments
of Prime Minister and Cabinet (1982–83) and Treasury (1983–86).
Sandra V McPhee DipEd, FAICD Director (non-executive)
Sandra McPhee has over 20 years’ experience in the management of consumer
facing organisations at a senior level. She was appointed to the Australia Post board in
October 2001 (current term expires in October 2007). Ms McPhee has held a variety of
senior executive positions in the international aviation and tourism industries, including
10 years with Qantas Airways Limited. She is a non-executive director of Coles Myer,
Perpetual Trustees Australia, the Art Gallery of New South Wales and St Vincents and
Mater Health.
Edward D Tweddell BSc, MBBS (Hons), FRACGP Director (non-executive)
Before his sudden death on 4 August 2005, Ed Tweddell had accumulated over
25 years of corporate leadership experience in the pharmaceutical and health care
industries. He was appointed to the Australia Post board in November 2001 (and his
term was due to expire in November 2007). Dr Tweddell was also chairman of Ansell
and the Nepenthe Group and a director of the Commonwealth Scientific and Industrial
Research Organisation (CSIRO).
Ian K Warner RFD, LLM Director (non-executive)
Ian Warner is a distinguished legal practitioner with extensive commercial experience.
He was appointed to the Australia Post board in June 2001 (current term expires
in September 2007). Mr Warner is a former senior partner, and currently a senior
consultant, at Jackson McDonald Barristers and Solicitors. He is chairman of Rivaknar
Properties (WA), deputy chairman of Amcom Telecommunications and a director of Cape
Bouvard Investments.
Australia Post Annual Report 2004/05 Report of Operations
Board of Directors
| 59 |

STAMP
GALLERY
04
05
Centenary of
Rotary International
World Heritage Australia – UK joint issue
Olympics Games Athens 2004
(featuring select stamps from select issues) 150th Anniversary of the First Australian Gold Coin
Christmas 2004
150th Anniversary of Railways Australia

STAMP
GALLERY
04 05
Australian Gold Medallists 2004
Sports Treasures
Australian Open 1905–2005
Australian Heroes of Grand Prix Racing Cats and Dogs
Australian Legends

Australian Parrots
Creatures of the Slime
PHILATELIC
HIGHLIGHTS
Key stamp issues
This year’s philatelic issue
program celebrated some
important national anniversaries,
including the Centenary of
the Australian Open tennis
championships, and the 150th
Anniversaries of the Eureka
Stockade, Australian Railways
and the First Australian Coin.
In January, the Australian Legends
Award stamp issue honoured
the achievements of six leading
Australian fashion designers –
Prue Acton OBE, Jenny Bannister,
Collette Dinnigan, Akira Isogawa,
Joe Saba and Carla Zampatti AM.
Olympic Games stamp issues
By far the most publicised
philatelic release of the year was
the stamp issue that celebrated
gold medal victories by Australian
athletes during the Athens
Olympic Games. Each of the
17 stamps was printed overnight
following each gold medal
victory and made available to the
Australian public within 48 hours
of the athlete appearing on the
winner’s dais.
On-line business
The number of visitors to the
Philatelic website increased
by 117 per cent this year. By
30 June 2005, the site was
receiving 87,000 hits per day. In
April, we launched Personalised
Stamps on-line, which means
domestic customers can purchase
Personalised Stamps via the
Internet for the first time.
New products
We introduced a range of new
products in the memorabilia
and collectables market this
year, including:
° SNAPSHOT! – the world’s
first personalised booklet
° a limited edition Centenary
of Rotary International
imperforate sheetlet
° special event sheets to
celebrate the AFL premiership
and Brownlow Medal
presentation
° a series of 12 zodiac booklets
representing each star sign
° a collectable coin to celebrate
the birth of a baby
° a booklet called Australia and
War – the Story in Stamps
° a vintage Mickey Mouse
print collection
° a prepaid Christmas card
boxed set
° a series of souvenir stamp
sheets celebrating the range
of Disney/Pixar films.
Pacific Explorer Stamp Expo
Thousands of visitors attended
the Pacific Explorer World
Stamp Expo in Sydney during
April 2005. Held over four days
under the auspices of the
Fédération Internationale de
Philatélie (FIP), Pacific Explorer
is the only international stamp
show of 2005. Some of the
world’s rarest and most valuable
stamps were on display at
the Expo, including the multimillion
dollar Tapling Collection,
which was on loan from the
British Library. Representatives
from 34 countries – including
stamp dealers, auctioneers and
postal administrations – were in
attendance at Pacific Explorer.
Awards
Australia Post was awarded the
bronze medal in the 2004 Olympia
Prize, which recognised the most
beautiful stamp issues released to
commemorate the Athens 2004
Olympic Games.
The future
The Philatelic Group will pursue
improved financial returns
through appropriate product
expansions, improved inventory
management and a reduction
in warehousing and distribution
costs. There will be an important
focus on learning more about
the needs of collectors through
the introduction of a relationship
management program. This
will involve analysing customer
behaviour and preferences
and using direct mail to deliver
relevant information and offers.

AUSTRALIA POST ANNUAL REPORT 2004/05
AUSTRALIA POST
HEADQUARTERS
321 Exhibition Street
MELBOURNE VIC 3000
GPO Box 1777
MELBOURNE VIC 3001
Phone 03 9204 7171
Facsimile 03 9663 1160
CUSTOMER CONTACT
CENTRES (ALL STATES/
TERRITORIES)
Phone 13 13 18
(general enquiries)
Phone 13 13 17
(postcode, post office
location, and hours of
operation enquiries)
Phone 13 11 18
(business enquiries)
COPIES OF
THIS REPORT
This report can be found on
the Internet via Australia Post’s
website at: auspost.com.au
To obtain a printed copy,
phone 03 9204 7564.
STATE/TERRITORY OFFICES
AUSTRALIAN
CAPITAL TERRITORY
7–9 Geelong Street
FYSHWICK ACT 2609
Locked Bag 7000
MANUKA ACT 2603
Phone 02 6209 8111
Facsimile 02 6209 8132
NEW SOUTH WALES
219–241 Cleveland Street
STRAWBERRY HILLS
NSW 1420
PO Box 1018
STRAWBERRY HILLS
NSW 1420
Phone 02 9202 6033
Facsimile 02 9202 6733
NORTHERN TERRITORY
GPO
48 Cavenagh Street
DARWIN NT 0800
GPO Box 3600
DARWIN NT 0801
Phone 08 8402 6019
Facsimile 08 8402 6218
QUEENSLAND
GPO
261 Queen Street
BRISBANE QLD 4000
GPO Box 6000
BRISBANE QLD 4001
Phone 07 3405 1202
Facsimile 07 3109 5222
SOUTH AUSTRALIA
GPO
141 King William Street
ADELAIDE SA 5000
GPO Box 4000
ADELAIDE SA 5001
Phone 08 8402 6019
Facsimile 08 8402 6218
TASMANIA
GPO
9 Elizabeth Street
HOBART TAS 7000
GPO Box 4000
HOBART TAS 7001
Phone 03 6236 3501
Facsimile 03 6236 3599
VICTORIA
321 Exhibition Street
MELBOURNE VIC 3000
GPO Box 1777
MELBOURNE VIC 3001
Phone 03 9204 7171
Facsimile 03 8626 1888
WESTERN AUSTRALIA
GPO
3 Forrest Place
PERTH WA 6000
GPO Box 9000
PERTH WA 6848
Phone 08 9237 5000
Facsimile 08 9322 7743
auspost.com.au

About this Annual Report
Project manager Maya Lerner
Writer Paul O’Farrell
Photo co-ordinator Caroline Parkinson
Design Magnetic Design
Photographer James Braund
Post publications manager Leonie Fleming
Consultant Robert Masters
Proofreaders Context Editorial, Michael Coulter
Print management iPrint
Pre-press wellcom
Printing Gunn & Taylor
Paper stocks used in this annual report are made from
material sourced from either plantation or sustainable
managed forests. All pulp suppliers practise sustainable
forest management in line with strict international
standards and operate under ISO 14001 or Forest
Stewardship Council accredited environmental systems
and practices. Both stocks are Elemental Chlorine Free and
manufactured at sites that are accredited to the highest
level in international environmental standards ISO 14001.

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Understanding our statements
| 60 |
FINANCIAL AND STATUTORY REPORTS
FOR THE YEAR ENDED 30 JUNE 2005
UNDERSTANDING OUR STATEMENTS
Australia Post’s 2004–05 financial statements enable
readers to assess the corporation’s results for the
year, its present financial position, its future outlook
and the value of its assets. Comparable measures are
provided for the previous year.
The Statements by Directors and the Auditor-General’s
Report are standard legal declarations which are
required in all annual financial reports.
The “Corporation” figures are for Post alone, while the
“Consolidated” figures include transactions between
Post or its subsidiary companies and third parties.
All figures in these statements are rounded to the
nearest $100,000.
The Statement of Financial Performance shows the
income and running costs of the corporation for the
financial year.
The Statement of Financial Position provides information
on Post’s assets and liabilities and indicates the amount
of the Commonwealth Government’s investment at the
end of the financial year.
Assets listed in the Statement of Financial Position as
“current” are likely to be converted to cash within the
next 12 months. Liabilities that are “current” are due
and payable within 12 months. “Non-current” assets
or liabilities are long-term. Equity is the corporation’s
total capital and reserves plus profits that have
been reinvested over the years.
The Statement of Cash Flows shows the derivation of
the corporation’s cash resources during the financial
year and its cash outlays.
To gain a complete understanding of Post’s 2004–05
results, the financial statements should be read in
conjunction with the accompanying explanatory notes.

60 Understanding our statements
62 Financial statements audit report
64 Statements by directors
65 Statement of financial performance
66 Statement of financial position
67 Statement of cash flows
68 Schedule of commitments
68 Schedule of contingencies
69 Notes to and forming part of the
financial statements
69 1 Summary of significant accounting policies
73 2 Revenues from ordinary activities
74 3 Expenses from ordinary activities
(excluding borrowing costs expense)
75 4 Borrowing costs expense
5 Income tax
76 6 Current assets – receivables
7 Current assets – inventories (held for sale)
8 Current assets – tax
9 Current assets – other
77 10 Non-current assets – receivables
11 Non-current assets – investments
(non-traded)
78 12 Non-current assets – property, plant
and equipment
13 Non-current assets – intangibles
14 Non-current assets – tax
79 15 Non-current assets – other
16 Current liabilities – provisions
17 Current liabilities – payables
18 Current liabilities – tax
19 Non-current liabilities – interest bearing
80 20 Non-current liabilities – provisions
21 Non-current liabilities – payables
22 Non-current liabilities – tax
23 Analysis of equity
24 Auditors’ remuneration
81 25 Directors’ remuneration and
retirement benefits
82 26 Executives’ remuneration
84 27 Dividends paid
28 Related parties
85 29 Superannuation
86 30 Investments accounted for under
the equity method
89 31 Analysis of property, plant & equipment
and intangibles (consolidated)
90 31 Analysis of property, plant & equipment
and intangibles (corporation)
91 32 Provisions – movement schedule
33 Financial instruments
96 34 Segment information
98 35 Leases
36 Notes to the statement of cash flows
101 37 Events after balance date
38 Adoption of Australian equivalents to
international financial reporting standards
103 39 Contingent liabilities – finance lease
104 Community service obligations
Performance standards
Organisational arrangements
CSO costs
105 Performance standards audit report
107 KPMG report on domestic letter
service performance
108 ACNielsen survey certification
109 Reserved / non-reserved services
110 Statutory reporting requirements index
112 Statutory reporting requirements
116 Australia Post – the statistics
1 Five-year statistical summary
2 Basic postage rate and the
Consumer Price Index
117 3 Australia Post outlets
4 Australia Post outlets by state and
geographic classification
118 5 Mail delivery network
6 Letter senders’ access to postal network
119 7 Letter recipients’ access to postal network
8 Frequency of service to delivery points
120 9 Overall letter service performance
10 Summary of Australia Post property portfolio
121 11 Total articles through Australia Post’s network
12 Persons engaged in providing postal services
122 Index
CONTENTS
FOR THE YEAR ENDED 30 JUNE 2005
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Contents
| | 61 61 | |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Financial statements audit report
| 62 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Financial statements audit report
| 63 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statements by directors
| 64 |
STATEMENTS BY DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2005
2004–05 FINANCIAL STATEMENTS
In the opinion of the directors:
(a) the accompanying financial statements for the year ended 30 June 2005:
(i) give a true and fair view of the matters required by the Finance Minister’s Orders made under the
Commonwealth Authorities and Companies Act 1997; and
(ii) have been prepared based on properly maintained financial records; and
(b) at the date of this statement, there are reasonable grounds to believe that the corporation will be
able to pay its debts as and when they fall due.
This statement is made in accordance with a resolution of the directors.
L B Nicholls G T John
Chairman Managing Director
Melbourne
25 August 2005
2004–05 FINANCIAL STATEMENTS CERTIFICATION
Prior to the adoption of the 2004–05 financial statements the board received and considered a written
statement from the managing director and chief finance officer to the effect:
– that the statements presented a true and fair view, in all material respects, of the corporation and
the consolidated entity’s financial position and performance and were in accordance with applicable
Accounting Standards and other mandatory professional reporting requirements in Australia as required
by the Finance Minister’s Orders under the Commonwealth Authorities and Companies Act 1997; and
– that the integrity of the financial statements and notes thereto are founded on a sound system of risk
management, internal compliance and control that operated effectively and efficiently in all material
respects, consistent with the Australian Standard on Risk Management (AS/NZS 4360:2004) and policies
adopted by the Board of Directors.
L B Nicholls
Chairman
Melbourne
25 August 2005
2004–05 REPORT OF OPERATIONS
In the opinion of the directors, the requirements under section 9 of the Commonwealth Authorities and
Companies Act 1997 for the preparation and content of the “Report of Operations” as specified in orders
issued by the Minister for Finance and Administration are met in the general body of this report (p. 1–59)
and in the Statutory Report (p. 110–115).
This statement is made in accordance with a resolution of the directors.
L B Nicholls
Chairman
Melbourne
25 August 2005

REVENUE
STATEMENT OF FINANCIAL PERFORMANCE
Note
Revenues from ordinary activities 2, 34
2005
$m
FOR THE YEAR ENDED 30 JUNE 2005
Consolidated Corporation
Goods and services 4,178.9 4,048.0 4,139.4 4,024.6
Interest 29.9 27.4 30.3 27.5
Dividends 0.0 0.0 25.2 7.8
Revenue from sale of assets 42.6 32.0 42.6 32.0
Net foreign exchange gains 2.0 0.0 2.0 0.0
Rents 20.8 20.2 20.8 20.2
Other revenues 32.4 20.0 31.2 28.4
Revenues from ordinary activities 4,306.6 4,147.6 4,291.5 4,140.5
EXPENSE
Expenses from ordinary activities
(excluding borrowing costs expense)
3
Employees 1,858.1 1,734.3 1,835.2 1,722.8
Suppliers 1,656.6 1,611.8 1,643.5 1,606.2
Depreciation and amortisation 184.9 204.1 181.5 202.5
Value of assets sold 30.7 23.6 29.8 23.6
Net foreign exchange losses 0.0 1.0 0.0 1.0
Write-down and impairment of assets 3.7 1.9 3.5 1.9
Other expenses 32.7 31.2 33.5 31.3
Expenses from ordinary activities
(excluding borrowing costs expense)
2004
$m
2005
$m
2004
$m
3,766.7 3,607.9 3,727.0 3,589.3
Borrowing costs expense 4 32.3 32.1 32.0 32.1
Share of net profits of joint-ventures
accounted for using the equity method
Profit from ordinary activities before
income tax
30 16.9 13.5 0.5 0.2
524.5 521.1 533.0 519.3
Income tax expense 5 149.6 150.0 151.4 151.1
Profit from ordinary activities after income tax 374.9 371.1 381.6 368.2
Net loss attributable to outside equity interests 0.0 – – –
Net profit attributable to members of the
parent entity
374.9 371.1 381.6 368.2
Net credit to asset revaluation reserve 23 121.6 88.5 121.6 88.5
Total revenues, expenses and valuation
adjustments recognised directly in equity
Total changes in equity other than those
resulting from transactions with owners
as owners
The accompanying notes form an integral part of these financial statements.
121.6 88.5 121.6 88.5
496.5 459.6 503.2 456.7
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statement of financial performance
| 65 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statement of financial position
| 66 |
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2005
ASSETS
Current assets
Note
2005
$m
Consolidated Corporation
Cash 36 568.7 455.9 565.8 452.8
Receivables 6 360.5 312.8 341.7 310.0
Inventories 7 67.6 59.4 67.6 59.4
Tax assets 8 104.0 110.6 104.0 110.6
Accrued revenues 68.2 63.4 68.2 63.3
Other current assets 9 48.8 57.0 47.3 56.2
Total current assets 1,217.8 1,059.1 1,194.6 1,052.3
Non-current assets
Receivables 10 226.1 226.1 238.8 232.8
Investments accounted for under
the equity method
2004
$m
2005
$m
2004
$m
11 273.9 275.0 263.6 263.1
Investments 11 0.0 0.0 72.3 4.3
Land and buildings 12, 31 1,259.8 1,146.3 1,259.1 1,146.3
Plant and equipment 12, 31 550.7 587.3 538.1 582.4
Intangibles 13, 31 122.6 72.0 69.9 70.7
Tax assets 14 106.5 94.6 106.5 94.6
Other non-current assets 15 5.0 11.4 5.0 11.4
Total non-current assets 2,544.6 2,412.7 2,553.3 2,405.6
Total assets 3,762.4 3,471.8 3,747.9 3,457.9
LIABILITIES
Current liabilities
Provisions 16 275.1 268.0 272.2 267.2
Payables 17 624.5 622.1 619.0 619.8
Tax liabilities 18 52.7 58.6 52.1 58.6
Total current liabilities 952.3 948.7 943.3 945.6
Non-current liabilities
Interest-bearing liabilities 19 531.8 530.0 530.0 530.0
Provisions 20 334.8 297.1 334.1 296.5
Payables 21 4.5 4.6 2.1 1.7
Tax liabilities 22 124.6 131.8 124.6 131.8
Total non-current liabilities 995.7 963.5 990.8 960.0
Total liabilities 1,948.0 1,912.2 1,934.1 1,905.6
Net assets 1,814.4 1,559.6 1,813.8 1,552.3
Equity
Contributed equity 23 400.0 400.0 400.0 400.0
Reserves 23 337.4 215.8 337.4 215.8
Retained profits 23 1,077.0 943.8 1,076.4 936.5
Total parent entity interest 1,814.4 1,559.6 1,813.8 1,552.3
Outside equity interest 0.0 – – –
Total equity 1,814.4 1,559.6 1,813.8 1,552.3
The accompanying notes form an integral part of these financial statements.

OPERATING ACTIVITIES
Cash received
Note
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2005
Consolidated Corporation
Goods and services 4,591.2 4,470.8 4,551.7 4,455.4
Interest 29.7 26.8 30.1 26.9
Dividends 26.5 7.9 25.7 7.9
Total cash received 4,647.4 4,505.5 4,607.5 4,490.2
Cash used
Employees 1,806.7 1,801.1 1,785.9 1,791.4
Suppliers 1,869.9 1,852.8 1,849.9 1,849.8
Borrowing costs 28.3 26.4 28.0 26.4
Income tax 167.7 179.4 167.7 179.4
GST paid 222.9 212.8 222.3 212.3
Total cash used 4,095.5 4,072.5 4,053.8 4,059.3
Net cash from operating activities 36 (b) 551.9 433.0 553.7 430.9
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant
and equipment
2005
$m
2004
$m
2005
$m
2004
$m
27.7 32.0 27.7 32.0
Total cash received 27.7 32.0 27.7 32.0
Cash used
Loans to related parties 8.1 129.0 9.5 131.1
Payments for investments in controlled
entities (net of cash acquired)
Payments for investments in joint-venture
entities
49.1 0.0 59.3 0.5
8.5 256.2 0.5 255.1
Purchase of property, plant and equipment 124.4 197.9 122.9 196.9
Purchase of intangibles 35.0 12.0 34.5 11.0
Total cash used 225.1 595.1 226.7 594.6
Net cash used by investing activities (197.4) (563.1) (199.0) (562.6)
FINANCING ACTIVITIES
Cash used
Dividends paid 241.7 218.5 241.7 218.5
Total cash used by financing activities (241.7) (218.5) (241.7) (218.5)
Net increase/(decrease) in cash held 112.8 (348.6) 113.0 (350.2)
Cash at beginning of reporting period 455.9 804.5 452.8 803.0
Cash at end of reporting period 36 (a) 568.7 455.9 565.8 452.8
The accompanying notes form an integral part of these financial statements.
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statement of cash flows
| 67 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Schedule of commitments and schedule of contingencies
| 68 |
SCHEDULE OF COMMITMENTS & SCHEDULE OF CONTINGENCIES
AS AT AND FOR THE YEAR ENDED 30 JUNE 2005
SCHEDULE OF COMMITMENTS
2005
$m
Consolidated Corporation
BY TYPE
Capital commitments:
Land and buildings 15.0 6.6 15.0 6.6
Plant and equipment 41.9 31.3 41.2 30.8
Total capital commitments 56.9 37.9 56.2 37.4
Other commitments:
Operating leases 347.6 297.8 208.7 225.4
Other commitments (1) 731.4 618.9 728.3 610.7
Total other commitments 1,079.0 916.7 937.0 836.1
BY MATURITY
Capital commitments due:
Within one year 54.1 37.9 53.4 37.4
From one to five years 2.8 0.0 2.8 0.0
Over five years 0.0 0.0 0.0 0.0
Total capital commitments 56.9 37.9 56.2 37.4
Operating lease commitments due: (2)
Within one year 95.4 79.4 62.1 65.3
From one to five years 193.3 158.5 124.8 114.5
Over five years 58.9 59.9 21.8 45.6
Total operating lease commitments 347.6 297.8 208.7 225.4
Other commitments due:
Within one year 306.6 276.1 303.9 271.0
From one to five years 419.8 337.5 419.4 334.4
Over five years 5.0 5.3 5.0 5.3
Total other commitments 731.4 618.9 728.3 610.7
Notes
1. The majority of these commitments relate to carriage and delivery of letters and parcels by contractors.
2. These commitments are net of sub-lease recoveries.
SCHEDULE OF CONTINGENCIES
Guarantees (1) Finance lease (2)
Claims for
damages or costs (3) Total
2005 2004 2005 2004 2005 2004 2005 2004
$m $m $m $m $m $m $m $m
Consolidated
Balance from previous period 186.2 131.7 222.1 247.8 4.8 7.1 413.1 386.6
New 4.1 25.9 1.6 0.0 6.2 1.4 11.9 27.3
Re-measurement 13.3 30.3 (10.9) (15.1) 0.1 0.1 2.5 15.3
Liabilities crystallised 0.0 0.0 0.0 0.0 (0.5) 0.0 (0.5) 0.0
Obligations expired (1.6) (1.7) (2.9) (10.6) (1.0) (3.8) (5.5) (16.1)
Total contingent liabilities 202.0 186.2 209.9 222.1 9.6 4.8 421.5 413.1
Corporation
Balance from previous period 148.7 119.2 222.1 247.8 4.8 7.1 375.6 374.1
New 0.0 0.0 1.6 0.0 6.2 1.4 7.8 1.4
Re-measurement 14.0 29.5 (10.9) (15.1) 0.1 0.1 3.2 14.5
Liabilities crystallised 0.0 0.0 0.0 0.0 (0.5) 0.0 (0.5) 0.0
Obligations expired 0.0 0.0 (2.9) (10.6) (1.0) (3.8) (3.9) (14.4)
Total contingent liabilities 162.7 148.7 209.9 222.1 9.6 4.8 382.2 375.6
Notes
1. Relate to outstanding workers’ compensation claims liabilities, and bank guarantees provided by joint-venture entities
and subsidiaries.
2. The corporation has guaranteed lease payments to be made by a third party, on the corporation’s behalf, over the 15 year and 17
year terms of finance leases entered into by the corporation during the year ended 30 June 2000 and 30 June 2001 respectively.
The discounted value of the future lease payments over the period of the leases amounts to $209.9 million (2004, $222.1 million).
3. Various legal liability claims have been lodged against the corporation, including motor vehicle accident and personal injury
claims. The directors have considered legal advice and are of the opinion that it is unlikely that the total of damages that may
become payable will exceed the amount shown.
The accompanying notes form an integral part of these financial statements.
2004
$m
2005
$m
2004
$m

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
01. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of accounting
The Australian Postal Corporation (the corporation)
is incorporated under the provisions of the Australian
Postal Corporation Act 1989 as amended. Financial
statements are required by clause 1(b) of Schedule
1 to the Commonwealth Authorities and Companies
Act 1997.
This is a general-purpose financial report prepared
in accordance with:
° Finance Minister’s Orders (being the
Commonwealth Authorities and Companies
(Financial Statement) Orders) for reporting periods
ending on or after 30 June 2005
° Australian Accounting Standards and Accounting
Interpretations issued by the Australian Accounting
Standards Board
° Consensus Views of the Urgent Issues Group.
The Corporation and Consolidated Statements of
Financial Performance and Financial Position are
prepared on an accrual basis and are in accordance
with the historical cost convention, except for certain
assets which, as noted, are at valuation. Except
where stated, no allowance is made for the effect of
changing prices on the results or the financial position.
Accounting policies adopted are consistent with those
applied in the prior year.
Assets and liabilities are recognised in the Corporation
and Consolidated Statements of Financial Position
when and only when it is probable that future
economic benefits will flow and the amounts of the
assets or liabilities can be reliably measured. Liabilities
and assets that are unrecognised are reported in
the Schedule of Commitments and the Schedule of
Contingencies (other than unquantifiable or remote
contingencies, which are reported at note 39).
Revenues and expenses are recognised in the
Corporation and Consolidated Statements of
Financial Performance when and only when the flow
or consumption or loss of economic benefits has
occurred and can be reliably measured.
Comparative information is reclassified where
appropriate to achieve consistency in disclosure
with current financial year amounts and other
disclosures. Amounts shown in the financial
statements have been rounded to the nearest
one hundred thousand dollars except in relation
to remuneration of directors, remuneration of
executives and remuneration of auditors.
(b) Principles of consolidation
The consolidated financial statements comprise the
corporation (parent entity) and its controlled entities.
The financial statements of the controlled entities are
prepared using accounting policies consistent with
those of the corporation. The effects of transactions
and balances between the entities are eliminated in
full. Results of controlled entities are consolidated
from the time control is obtained until it ceases.
(c) Revenue recognition
(i) Sales revenue
Sales revenue comprises revenue earned (net of
returns, discounts and allowances) from the major
FOR THE YEAR ENDED 30 JUNE 2005
business activities. Recognition is at point of sale in
the case of postage items and provision of agency
services, point of lodgement in the case of bulk mail
and when control of goods has passed to the buyer in
the case of retail products. Allowance is made for the
assessed amount of revenue from postage sales as at
balance date in respect of which service had not yet
been provided (refer note 17).
(ii) Interest revenue
Interest revenue is recognised when control of
the right to receive the interest payment has been
established.
(iii) Government funding
Funding from Government for specific activities is
recognised when control of the right to receive the
funding has been established.
(iv) Asset sales
Sales of property are generally recognised on
exchange of title. However, in certain circumstances
when there is a contractual obligation to complete a
property sale and settlement is assured, the sale is
recognised when the underlying contract becomes
unconditional. Revenue from the sale of non-property
assets is recognised when control of the asset has
passed to the buyer.
(v) Dividends
Dividends are recognised when control of the right to
receive a dividend has been established. Dividends
received from joint-ventures are accounted for in
accordance with the equity method of accounting.
(d) Depreciation and amortisation
Depreciable property, plant and equipment assets
are written-off to their estimated residual values over
their estimated useful lives to the corporation using
the straight-line method of depreciation.
Depreciation/amortisation rates (useful lives)
and methods are reviewed annually and necessary
adjustments are recognised in the current, or current
and future reporting periods, as appropriate. Residual
values are re-estimated for a change in prices only
when assets are revalued.
Depreciation and amortisation rates applying to items
in each class of depreciable asset are based on the
following useful lives:
2005 2004
Buildings – GPOs 70 years 70 years
Buildings –
other facilities
Leasehold
improvements
40–50 years 40–50 years
Lower of
lease term
and 10 years
Lower of
lease term
and 10 years
Motor vehicles 3–7 years 3–7 years
Specialised plant
and equipment
10–20 years 10–20 years
Other plant and equipment 3–10 years 3–10 years
The aggregate amount of depreciation and
amortisation allocated for each class of asset
during the reporting period is disclosed in note 3.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 69 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 70 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
(e) Dividends
A provision for dividend is not recognised as a liability
unless the dividend is declared, determined or publicly
recommended on or before the reporting date.
(f) Cash
Cash on hand and in financial institutions and on
short-term deposit are stated at nominal value. Cash
includes certain receipts relating to the corporation’s
agency arrangements. These amounts are payable to
the various principals (refer note 17).
(g) Receivables
Trade receivables are recognised and carried at original
invoice amount less a provision for any uncollectible
debts. Terms are 14 days. An estimate for doubtful
debts is made when collection of the full amount is no
longer probable. Bad debts are written off as incurred.
(h) Inventories
Raw materials, work in progress and finished goods
are stated at the lower of cost and net realisable
value. For products manufactured by the corporation,
cost comprises direct materials, direct labour and an
appropriate proportion of variable and fixed overhead
expenditure. Costs are assigned to inventory quantities
on hand at balance date on the basis of weighted
average costs. Inventory on hand at balance date is
held for resale.
(i) Investments
Interests in joint-venture entities, over which the
corporation exercises significant influence but not
control, are accounted for in the consolidated financial
statements using the equity method and at the lower
of cost and recoverable amount in the corporation’s
own statements. Under the equity method, the
corporation’s share of the post-acquisition profits or
losses of the joint-venture is recognised as revenue
or expense in the consolidated Statement of Financial
Performance and its share of movements in reserves
is recognised in consolidated reserves. The cumulative
post-acquisition movements are adjusted against the
cost of the investment.
Interests in joint-venture partnerships are equity
accounted on consolidation and in the corporation’s
statements. All other non-current investments are
carried at the lower of cost and recoverable amount.
(j) Leased assets
In the case of operational leases, where the risks and
benefits remain with the lessor, lease payments are
charged as expense to net profit or loss in the periods
in which they are incurred.
In the case of assets acquired under finance leases,
where substantially all the risks and benefits transfer to
the corporation, the non-current asset is capitalised at
the present value of minimum lease payments at the
inception of the lease and a liability recognised for the
same amount. Leased assets are amortised over the
term of the lease. Lease payments are allocated between
interest expense and reduction in the lease liability.
The corporation entered sale and leaseback
transactions for certain plant and equipment assets
during the years ended 30 June 2000 and 30 June
2001. The carrying amounts of these assets
were written down to fair value at the date of the
transactions and the consequent profit on sale is
being amortised over the lower of the remaining
useful life of the assets and the lease term. These
assets have been valued using the same methodology
as specialised plant and equipment that is owned.
(k) Property, plant and equipment (PP&E)
(i) Initial recognition
Purchases of property, plant and equipment are
recognised initially at cost, with the exception of
plant and equipment under one thousand dollars
(and not part of a major re-equipment program)
which is expensed in the year of acquisition.
(ii) Basis of revaluation
Land and buildings
Property revaluations undertaken are subject to
revaluation on a fair value basis in accordance
with Finance Minister’s Orders.
Land and buildings consists of:
° special-purpose buildings – facilities purpose built to
meet the mail processing and network requirements
of the corporation’s mail services
° general-purpose buildings – owned freehold
properties not included in the special purpose
class and improvements to properties on leased
land. This includes post offices, administrative and
operational support facilities.
Special-purpose properties are valued using a
market price assuming continued occupation by the
corporation. General-purpose properties are valued
using a market selling price.
Assets which are surplus to requirements are
measured at their expected net realisable value.
At 30 June 2005 the corporation held surplus property
assets estimated to realise $21.6 million (30 June
2004, $21.8 million).
Plant and equipment (P&E)
Plant and equipment assets are subject to revaluation
on a fair value basis in accordance with Finance
Minister’s Orders.
Plant and equipment consists of:
° specialised plant and equipment – items that are
specific to the mail handling, retail and agency
operations including letter, parcel, retail and agency
systems
° non-specialised plant and equipment – items that
have general usage in industrial and commercial
operations such as motor vehicles, stores handling
equipment, office furniture and retail fixtures and
fittings.
For specialised plant and equipment, where no active
market exists for assets of similar use, type and
condition, fair value is established for cash generating
units using the net present value (NPV) of future cash
flows that arise from the highest and best use of the
cash generating unit. Where the NPV of these cash
flows is greater than the written-down current cost
(WDCC), fair value is recorded as the WDCC. Where
the NPV of these cash flows is less than the WDCC,
fair value is recorded at the WDCC reduced pro-rata by
the excess of WDCC over the NPV of these cash flows.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For non-specialised plant and equipment, fair value
is established by reference to a market selling price
where an active liquid market exists. Where no active
liquid market exists but current evidence exists for
similar assets, then fair value is determined using
best available market evidence.
(iii) Frequency of revaluation
Freehold land and buildings have been revalued as at
30 June 2005. Plant and equipment assets, including
assets under finance leases, are recorded at fair value
and are subject to annual review.
(iv) Conduct of revaluations
Revaluations of property assets are conducted by
independent valuers.
Revaluations of plant and equipment and leasehold
improvements are at directors’ valuation and are subject
to independent valuation at least every five years.
(l) Intangibles
Intangible assets comprise goodwill, customer
contracts and computer software.
Goodwill represents the excess of the purchase
consideration over fair value of identifiable net assets
acquired at the time of acquisition of a business or shares
in an entity. Goodwill is amortised on a straight-line basis
over the period during which benefits are expected to be
received to a maximum of 20 years.
Customer contracts acquired through the acquisition
of a business are carried at allocated cost and amortised
over the period during which the benefits are expected
to be recovered to a maximum of 20 years.
Computer software is carried at cost and is amortised
on a straight-line basis over its anticipated useful life,
being four to eight years.
(m) Taxation
The corporation is subject to all Federal, State and local
government taxes and charges.
Income tax has been brought to account using the
liability method of tax effect accounting, whereby
the income tax expense in the Statement of Financial
Performance is matched with the accounting profit
after allowing for permanent differences. Income tax
on net cumulative timing differences is set aside to
the deferred income tax and future income tax benefit
accounts at the rates which are expected to apply
when those timing differences reverse.
Revenues, expenses and assets are recognised net of
Goods and Services Tax (GST), except:
° where the GST incurred on a purchase of goods
and services is not recoverable from the taxation
authority, in which case the GST is recognised
as part of the cost of acquisition of the asset or
as part of the expense item as applicable
° receivables and payables are stated with the
amount of GST included.
Cash flows are included in the Statement of Cash
Flows on a gross basis and the GST component of cash
flows arising from investing and financing activities,
which is recoverable from, or payable to, the taxation
authority, are classified as operating cash flows.
Tax consolidation
The company and all its wholly owned Australian
FOR THE YEAR ENDED 30 JUNE 2005
resident entities are part of a tax-consolidated group
under Australian taxation law. The corporation is the
head entity in the tax-consolidated group. Current
and deferred tax balances of the members of the tax
consolidated group are recognised in the financial
statements of the corporation (as head entity in the
tax consolidated group).
Due to the existence of tax funding arrangements
between the entities in the tax consolidated group,
amounts are recognised as payable to or receivable
by the corporation and each member of the group
in relation to the tax contribution amounts paid or
payable between the corporation and the other
members of the tax-consolidated group in accordance
with the arrangements.
(n) Employee benefits
(i) Benefits
Liabilities for services rendered by employees are
recognised at the reporting date to the extent that
they have not been settled.
Liabilities for wages and salaries (including non-monetary
benefits) and annual leave are measured at their nominal
amounts. Other employee benefits expected to be
settled within 12 months of their reporting date are also
measured at their nominal amounts.
The nominal amount is calculated with regard to the
rates expected to be paid on settlement of the liability.
All other employee benefits expected to be settled
beyond 12 months are measured as the present value of
the estimated future cash outflows to be made in respect
of services provided by employees up to the reporting
date. The 10-year Commonwealth Government bond rate
is used to discount these liabilities.
(ii) Superannuation
Generally the corporation meets its superannuation
obligations (including those imposed under the
Superannuation Guarantee (Administration) Act 1992)
through the Australia Post Superannuation Scheme (APSS)
and through the Superannuation Act 1976 (refer note 29).
Amounts paid or payable by the corporation are
charged to expense.
(iii) Leave
The liability for employee benefits includes provision
for annual leave and long service leave. The liability
for long service leave is established by reference to
the work of an actuary as at balance date, with the
estimate of present value taking into account attrition
rates and pay increases through promotion and
inflation. No liability for sick leave is recognised, as
benefits lapse with termination of employment and
experience indicates that the pattern of sick leave
taken is less than the entitlement accumulating.
(iv) Workers’ compensation
The corporation is a licence holder under the Safety,
Rehabilitation and Compensation Act 1988 (SRC Act).
The corporation mostly self-insures its liability for
workers’ compensation. Claims are recognised in the
financial statements and measured by the discounted
value of an annuity. The adequacy of the provision is
established by reference to the work of an actuary as at
balance date, with the estimate of present value taking
into account pay increases, attrition rates, interest rates
and the time over which settlement is made.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 71 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 72 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
In accordance with its SRC Act licensing conditions,
the corporation has a bank guarantee to cover its
outstanding actuarial established claims liability (refer
Schedule of Contingencies). The corporation also
complies with a requirement to maintain reinsurance
to limit its workers’ compensation liabilities.
The corporation has recognised a liability for workers’
compensation of $123.5 million at balance date (refer
notes 16 and 20) of which $30.9 million relates to
claims made in the 2004–05 financial year (2003–04,
$21.1 million).
(v) Separation and redundancy
A liability is recognised for separation and redundancy
benefit payments for ongoing major restructuring only
where the corporation is demonstrably committed to
the restructuring and the cost can be reliably measured
(refer note 16). Generally such assessments do not exceed
the certainty of initiatives planned for the following year.
(o) Trade and other creditors
Liabilities are recognised for goods or services received
by the economic entity prior to the end of the reporting
period and which are unpaid. The amounts are unsecured
and are usually paid within 30 days of recognition.
(p) Interest-bearing liabilities
Fixed rate unsecured bonds are carried in the
Statement of Financial Position at their principal
amount. Interest is charged as an expense at the
contracted rate as it accrues. Any discount or premium
on issue of the bonds is amortised over the life of the
borrowings and recognised as interest.
(q) Research and development expenditure
Included in intangibles are certain research and
development costs in relation to the planning and
design of a range of new information technology
projects with a view to providing significant
improvements and expansion in existing products
offered by the corporation. These costs are deferred
to the extent that the directors consider the future
benefits are expected to equal or exceed these costs.
Any deferred costs are amortised over the period in
which the benefits are expected to flow.
(r) Insurance
Generally, the corporation self-insures its own risks.
However, with respect to catastrophic losses appropriate
insurance coverage for both the corporation and its
controlled entities has been arranged with general
insurers. Payments on account of losses and insurance
premiums paid in any year are charged against revenue
for the year. Where appropriate, the controlled entities
insure their other risks with general insurers.
(s) Foreign currency
The corporation has transactions with overseas postal
administrations relating to the carriage of mail to and
from Australia and may purchase goods and services
from overseas suppliers. Routinely, currency hedging
arrangements are put in place for the overseas mail
services, for major equipment purchases and for sales
of products and services to ensure certainty at the
point of settlement and the management of exposures
associated with fuel purchases.
Transactions denominated in a foreign currency are
converted at the exchange rate current at the date
of the transaction. Foreign currency receivables
and payables and hedges associated with them are
translated at the exchange rates current at balance
date. Any foreign currency gains or losses are
recognised in the Statement of Financial Performance,
except if relating to purchases of plant and equipment,
in which case the variation is adjusted against the
capital cost.
(t) Derivative financial instruments
The corporation does not enter into derivative
transactions for speculative purposes. However,
hedging arrangements using derivative instruments are
established to limit risk as noted in note 1(s) above,
to fix interest earnings and expense expectations on
short-term investments and medium-term borrowings
and to fix future fuel costs.
Foreign exchange contracts
Forward exchange and option contracts are recognised
at the date the contract is entered into. Exchange
gains or losses on these contracts are recognised in
the Statement of Financial Performance except those
relating to hedges of specific commitments which are
deferred and included in the measurement of the sale
or purchase.
Interest rate swaps
The corporation enters into interest rate swap
agreements that are used to vary the exposure to floating
and medium-term fixed interest rates. The objective of
the swaps is to minimise debt servicing costs.
Interest rate swaps are not recognised in the financial
statements. Net receipts and payments are recognised
on an accrual basis as an adjustment to interest expense.
(u) Recoverable amount
Non-current assets carried at fair value at the reporting
date are not subject to impairment testing. Non-current
assets measured using the cost basis are not carried at an
amount above their recoverable amount. When a carrying
value exceeds this recoverable amount, the asset is
written down. In determining a recoverable amount,
the expected net cash flows have been discounted to
their present value using a market determined risk adjusted
discount rate of 9.0% (2003–04, 9.0%).
(v) Loans receivable
Loans are recognised at the amounts lent. Provision is
made for bad and doubtful debts when collection of
the loan or part thereof is judged to be less, rather than
more, likely. In rare circumstances, loan repayment may
be waived. Interest is credited to revenue as it accrues.
(w) Borrowing costs
All borrowing costs are expensed as incurred except
to the extent that they are directly attributable to
qualifying assets, in which case they are capitalised.
The amount capitalised in a reporting period does not
exceed the amounts of costs incurred in that period.
(x) Comparatives
Where necessary, comparatives have been reclassified
and repositioned for consistency with current year
disclosures.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
02. REVENUES FROM ORDINARY ACTIVITIES
Revenue from operating activities:
Rendering of services to:
2005
$m
FOR THE YEAR ENDED 30 JUNE 2005
Consolidated Corporation
Related entities (1) 248.2 243.2 248.2 243.2
External entities (2) 3,594.0 3,491.1 3,554.5 3,467.7
2004
$m
2005
$m
2004
$m
3,842.2 3,734.3 3,802.7 3,710.9
Sale of goods to external entities (2) 336.7 313.7 336.7 313.7
Total revenue from operating activities 4,178.9 4,048.0 4,139.4 4,024.6
Revenue from outside the operating activities:
Interest from:
Deposits and discount securities 19.5 22.3 19.9 22.3
Loans 10.4 5.1 10.4 5.2
29.9 27.4 30.3 27.5
Dividends received or receivable from joint ventures 0.0 0.0 25.2 7.8
Revenue from sale of assets:
Land and buildings (3) 34.7 26.5 34.7 26.5
Plant and equipment and intangibles (4) 7.9 5.5 7.9 5.5
42.6 32.0 42.6 32.0
Net foreign exchange gains – non-speculative 2.0 0.0 2.0 0.0
Rents from operating leases 20.8 20.2 20.8 20.2
Other services:
Related entities (government grants) (1) 15.0 8.7 15.0 8.7
External entities (2) 17.4 11.3 16.2 19.7
32.4 20.0 31.2 28.4
Total revenue from outside the operating activities 127.7 99.6 152.1 115.9
Total revenue from ordinary activities 4,306.6 4,147.6 4,291.5 4,140.5
Notes
1. Related entities – related to the Commonwealth Government
2. External entities – not related to the Commonwealth Government
3. Net gain on disposal of land and buildings 14.6 9.7 14.6 9.7
4. Net loss on disposal of plant and equipment and intangibles 2.7 1.3 1.8 1.3
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 73 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 74 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
2005
$m
Consolidated Corporation
03. EXPENSES FROM ORDINARY ACTIVITIES (EXCLUDING BORROWING COSTS EXPENSE)
Employees:
Wages and salaries 1,471.3 1,407.0 1,451.8 1,396.9
Superannuation 35.8 15.7 35.7 15.7
Payroll tax 93.8 91.5 92.7 91.0
Leave and other entitlements 189.7 163.4 188.7 162.6
Separation and redundancy 7.6 (5.4) 7.5 (5.4)
Workers’ compensation 38.2 40.7 38.1 40.7
Other employee expenses 21.7 21.4 20.7 21.3
Suppliers:
Purchase of services from:
2004
$m
2005
$m
2004
$m
1,858.1 1,734.3 1,835.2 1,722.8
Related entities (1) 35.2 40.8 35.2 40.8
External entities (2) 1,319.6 1,282.7 1,309.4 1,277.6
1,354.8 1,323.5 1,344.6 1,318.4
Cost of sales – goods purchased from external entities (2) 206.8 197.1 206.6 197.0
Operating lease rentals (refer note 35(i)) 95.0 91.2 92.3 90.8
Depreciation and amortisation:
Depreciation:
1,656.6 1,611.8 1,643.5 1,606.2
Buildings 45.4 46.9 45.4 46.9
Plant and equipment 90.6 99.6 88.3 98.2
Plant and equipment under finance lease 12.5 12.5 12.5 12.5
Amortisation:
Computer software 35.2 44.8 34.9 44.6
Other intangibles 1.2 0.3 0.4 0.3
Value of assets sold:
184.9 204.1 181.5 202.5
Land and buildings 20.1 16.8 20.1 16.8
Plant and equipment 10.3 6.8 9.7 6.8
Intangibles 0.3 0.0 0.0 0.0
30.7 23.6 29.8 23.6
Net foreign exchange losses – non-speculative 0.0 1.0 0.0 1.0
Write-down and impairment of assets:
Inventory 3.1 0.0 3.1 0.0
Financial:
Receivables 0.6 0.8 0.4 0.8
Investments 0.0 1.1 0.0 1.1
3.7 1.9 3.5 1.9
Other expenses 32.7 31.2 33.5 31.3
Total expenses from ordinary activities 3,766.7 3,607.9 3,727.0 3,589.3
Notes
1. Related entities – related to the Commonwealth Government.
2. External entities – not related to the Commonwealth Government.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
04. BORROWING COSTS EXPENSE
FOR THE YEAR ENDED 30 JUNE 2005
Consolidated Corporation
Interest expense – bonds 32.0 32.1 32.0 32.1
Interest expense – hire purchase 0.3 0.0 0.0 0.0
Total borrowing costs expense 32.3 32.1 32.0 32.1
05. INCOME TAX
The prima facie tax on operating profit from ordinary activities is reconciled to the income tax provided in the
financial statements as follows:
Profit from ordinary activities before income tax 524.5 521.1 533.0 519.3
Prima facie tax expense at 30% (2004, 30%) 157.4 156.3 159.9 155.8
Tax effect of permanent differences:
Increase tax payable:
Depreciation of buildings 5.8 5.6 5.8 5.6
Tax attributes retained by the corporation 0.0 0.0 0.0 2.3
Sundry items 2.6 6.1 1.5 0.0
Decrease tax payable:
2005
$m
2004
$m
2005
$m
2004
$m
8.4 11.7 7.3 7.9
Sale of non-current assets 5.5 3.7 5.5 3.7
Special buildings write-off 4.5 4.4 4.5 4.4
Research and development expenditure 0.0 0.2 0.0 0.2
Share of net profits of joint-venture entities 5.1 5.8 0.0 0.0
Sundry items 0.0 2.8 6.5 3.2
15.1 16.9 16.5 11.5
Prima facie tax adjusted for permanent differences 150.7 151.1 150.7 152.2
(Over)/under provision in prior year (1.1) (1.1) 0.7 (1.1)
Income tax expense attributable to operating profit
from ordinary activities
149.6 150.0 151.4 151.1
Total income tax expense 149.6 150.0 151.4 151.1
After allowing for:
(Increase)/decrease in deferred income tax provision 3.9 13.4 3.9 13.4
Increase/(decrease) in future income tax benefit 5.3 (12.0) 5.3 (13.1)
Over/(under) provision in prior year 1.1 1.1 (0.7) 1.1
Income tax paid/ payable on current year taxable income 159.9 152.5 159.9 152.5
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 75 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 76 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
06. CURRENT ASSETS – RECEIVABLES
2005
$m
Consolidated Corporation
Goods and services 309.7 289.8 289.5 285.1
Provision for doubtful debts (5.6) (6.9) (4.3) (6.9)
2004
$m
2005
$m
2004
$m
304.1 282.9 285.2 278.2
Proceeds receivable 14.9 0.0 14.9 0.0
Finance lease receivable (refer note 35(ii)) 6.5 6.5 6.5 6.5
Interest 1.3 1.1 1.3 1.1
Trade receivables from controlled and joint-venture
entities (refer note 28)
1.5 0.8 3.7 1.7
Other receivables 32.2 21.5 30.1 22.5
Total current receivables 360.5 312.8 341.7 310.0
Receivables (gross) are aged as follows:
Current 338.0 283.3 319.4 280.5
Overdue less than 30 days 14.7 13.6 13.9 13.6
Overdue 30–60 days 1.3 1.7 1.2 1.7
Overdue 61–90 days 0.4 1.0 0.4 1.0
Overdue more than 90 days 11.7 20.1 11.1 20.1
The provision for doubtful debts is aged as follows:
366.1 319.7 346.0 316.9
Current 0.6 0.7 0.5 0.7
Overdue less than 30 days 0.3 0.3 0.2 0.3
Overdue 30–60 days 0.3 0.1 0.2 0.1
Overdue 61–90 days 0.0 0.0 0.0 0.0
Overdue more than 90 days 4.4 5.8 3.4 5.8
07. CURRENT ASSETS – INVENTORIES (HELD FOR SALE)
5.6 6.9 4.3 6.9
Raw materials 0.9 1.0 0.9 1.0
Work in progress 0.6 0.7 0.6 0.7
Finished goods at cost 72.8 61.3 72.8 61.3
Provision for diminution of finished goods (6.7) (3.6) (6.7) (3.6)
Total current inventories 67.6 59.4 67.6 59.4
08. CURRENT ASSETS – TAX
Future income tax benefit 104.0 110.6 104.0 110.6
Total current tax assets 104.0 110.6 104.0 110.6
No part of the future income tax benefit is attributable to previous tax losses and the realisation of the benefit is considered
as being assured beyond any reasonable doubt.
09. CURRENT ASSETS – OTHER
Prepayments 48.8 55.3 47.3 54.5
Deferred interest 0.0 1.7 0.0 1.7
Total other current assets 48.8 57.0 47.3 56.2

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
10. NON-CURRENT ASSETS – RECEIVABLES
Loans to controlled and joint-venture entities
(refer note 28)
2005
$m
FOR THE YEAR ENDED 30 JUNE 2005
Consolidated Corporation
2004
$m
2005
$m
2004
$m
129.0 129.0 141.7 135.7
Finance lease receivable (refer note 35 (ii)) 97.1 97.1 97.1 97.1
Total non-current receivables 226.1 226.1 238.8 232.8
11. NON-CURRENT ASSETS – INVESTMENTS (NON-TRADED)
Investments in joint-venture entities accounted for under the equity method (refer note 30):
Australian air Express Pty Ltd 18.4 18.4 6.9 6.9
iPrint Corporate Pty Ltd 0.9 1.2 0.1 0.1
Star Track Express Holdings Pty Ltd 240.7 249.3 250.0 250.0
Sai Cheng Logistics International Company Ltd 3.9 0.0 0.0 0.0
Multi Media Logistics Pty Ltd 3.4 0.0 0.0 0.0
Wetherill Park Partnership 6.6 6.1 6.6 6.1
Investments accounted for under the equity method 273.9 275.0 263.6 263.1
Investments in controlled entities:
Sprintpak Pty Ltd (1) – – 1.0 1.0
Postcorp Developments Pty Ltd (1) – – 0.1 0.1
Geospend Pty Ltd (1) – – 1.2 1.2
corProcure Pty Ltd (1) – – 0.1 0.1
Post Fulfilment Online Pty Ltd (2) – – 0.0 0.0
Newco NZ Limited (3) – – 0.0 0.0
Decipha Pty Ltd (2) – – 1.9 1.9
AP International Holdings Pty Ltd (1) – – 4.0 –
SnapX Pty Ltd (1) – – 8.4 –
JR Haulage Pty Ltd (2) – – 46.9 –
Printsoft Holdings Pty Ltd (1) – – 8.7 –
Investments in controlled entities – – 72.3 4.3
Investments in controlled entities are carried at cost. The corporation owns 100% of the ordinary shares of these entities
(2004, 100% with the exception of JR Haulage Pty Ltd, SnapX Pty Ltd, Printsoft Holdings Pty Ltd and AP International
Holdings Pty Ltd). In addition to the entities in the table above, the corporation, through its 100% owned subsidiary
JR Haulage Pty Ltd, owns a 75% interest in Lakewood Logistics Pty Ltd and a 60% interest in Chainlink Computer
Systems Pty Ltd.
Notes
1. These entities are incorporated in Australia and are small proprietary companies that have not been audited
as they are not required to prepare and lodge audited financial statements with the Australian Securities and
Investments Commission (ASIC).
2. These entities are incorporated in Australia and are large proprietary companies required to lodge audited financial
statements with ASIC.
3. This entity is incorporated in New Zealand and is required to lodge audited financial statements in New Zealand.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 77 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 78 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
2005
$m
Consolidated Corporation
2004
$m
12. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
Land and buildings at fair value:
Special-purpose properties (refer note1(k)(ii))
At independent valuation – 2004 0.0 608.2 0.0 608.2
At independent valuation – 2005 636.7 0.0 636.7 0.0
Under construction 23.5 11.3 23.5 11.3
General-purpose properties (refer note1(k)(ii))
2005
$m
2004
$m
660.2 619.5 660.2 619.5
At independent valuation – 2004 0.0 481.6 0.0 481.6
At independent valuation – 2005 547.9 0.0 547.9 0.0
Under construction 4.5 3.9 4.5 3.9
552.4 485.5 552.4 485.5
Leasehold improvements 47.2 41.3 46.5 41.3
Total land and buildings 1,259.8 1,146.3 1,259.1 1,146.3
Refer to note 31 for a reconciliation of the carrying amounts of property assets.
Plant and equipment at fair value:
Specialised plant and equipment (refer note1(k)(ii)) 350.2 370.9 350.2 370.9
Non-specialised plant and equipment (refer note1(k)(ii)) 200.5 216.4 187.9 211.5
Total plant and equipment 550.7 587.3 538.1 582.4
Refer to note 31 for a reconciliation of the carrying amounts of plant and equipment assets.
13. NON-CURRENT ASSETS – INTANGIBLES
Computer software:
At cost 462.2 434.9 460.5 433.4
Accumulated amortisation (392.6) (364.8) (392.1) (364.6)
Goodwill:
69.6 70.1 68.4 68.8
At cost 48.1 2.8 2.8 2.8
Accumulated amortisation (1.8) (0.9) (1.3) (0.9)
Customer contracts:
46.3 1.9 1.5 1.9
At cost 7.0 0.0 0.0 0.0
Accumulated amortisation (0.3) 0.0 0.0 0.0
6.7 0.0 0.0 0.0
Intangibles at cost 517.3 437.7 463.3 436.2
Accumulated amortisation (394.7) (365.7) (393.4) (365.5)
Total intangibles 122.6 72.0 69.9 70.7
Refer to note 31 for a reconciliation of the carrying amounts of intangible assets.
14. NON-CURRENT ASSETS – TAX
Future income tax benefit 106.5 94.6 106.5 94.6
Total non-current tax assets 106.5 94.6 106.5 94.6
No part of the future income tax benefit is attributable to previous tax losses and the realisation of the benefit is
considered as being assured beyond any reasonable doubt.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
15. NON-CURRENT ASSETS – OTHER
FOR THE YEAR ENDED 30 JUNE 2005
Consolidated Corporation
Deferred interest 0.0 6.4 0.0 6.4
Other non-current assets 5.0 5.0 5.0 5.0
Total non-current other assets 5.0 11.4 5.0 11.4
16. CURRENT LIABILITIES – PROVISIONS
Employees:
Leave 206.9 201.7 204.3 201.0
Workers’ compensation 24.9 22.1 24.9 22.1
Separations and redundancies 18.5 27.5 18.4 27.4
Other employee provisions 24.8 16.7 24.6 16.7
Total current provisions 275.1 268.0 272.2 267.2
Refer to note 32 for a schedule showing movements in provisions.
17. CURRENT LIABILITIES – PAYABLES
Suppliers:
Trade creditors 249.2 286.8 242.3 286.5
Other:
Agency creditors 189.1 161.4 189.1 161.4
Salaries and wages 28.3 21.7 27.4 20.7
Borrowing costs 8.0 4.0 8.0 4.0
Unearned postage revenue 55.2 54.0 55.2 54.0
Other advance receipts 56.8 56.9 56.7 56.5
Finance lease and hire purchase liabilities payable 1.5 0.0 0.0 0.0
Payables to controlled entities (refer note 28) 0.0 0.0 10.7 0.0
Other payables 36.4 37.3 29.6 36.7
2005
$m
2004
$m
2005
$m
2004
$m
375.3 335.3 376.7 333.3
Total current payables 624.5 622.1 619.0 619.8
18. CURRENT LIABILITIES – TAX
Income tax 31.8 41.0 31.2 41.0
Deferred income tax 20.9 17.6 20.9 17.6
Total current tax liabilities 52.7 58.6 52.1 58.6
19. NON-CURRENT LIABILITIES – INTEREST BEARING
Fixed-rate unsecured bonds payable:
– in one to five years 530.0 530.0 530.0 530.0
Finance lease and hire purchase liabilities payable:
– in one to five years 1.8 0.0 0.0 0.0
Total non-current interest-bearing liabilities 531.8 530.0 530.0 530.0
Effective interest rate between 5.5% and 6.1% (2004, 6.1%).
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 79 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 80 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
20. NON-CURRENT LIABILITIES – PROVISIONS
Employees:
2005
$m
Consolidated Corporation
Leave 236.2 207.5 235.5 206.9
Workers’ compensation 98.6 89.6 98.6 89.6
Total non-current provisions 334.8 297.1 334.1 296.5
Refer to note 32 for a schedule showing movements in provisions.
21. NON-CURRENT LIABILITIES – PAYABLES
Deferred interest 0.4 0.0 0.4 0.0
Loans from controlled entities (refer note 28) 0.0 0.0 1.7 1.7
Other payables 4.1 4.6 0.0 0.0
Total non-current payables 4.5 4.6 2.1 1.7
22. NON-CURRENT LIABILITIES – TAX
Deferred income tax 124.6 131.8 124.6 131.8
Total non-current tax liabilities 124.6 131.8 124.6 131.8
23. ANALYSIS OF EQUITY
Consolidated
Retained
profits
$m
2004
$m
Asset
revaluation
reserve
$m
2005
$m
Contributed
equity
$m
2004
$m
Total
equity
$m
Balance at 1 July 2004 943.8 215.8 400.0 1,559.6
Operating profit 374.9 0.0 0.0 374.9
Net revaluation increase 0.0 121.6 0.0 121.6
Dividends (refer note 27) (241.7) 0.0 0.0 (241.7)
Balance at 30 June 2005 1,077.0 337.4 400.0 1,814.4
Share of retained earnings attributable to minority
interests
Balance at 30 June 2005 attributable to the
Commonwealth
Corporation
0.0 0.0 0.0 0.0
1,077.0 337.4 400.0 1,814.4
Balance at 1 July 2004 936.5 215.8 400.0 1,552.3
Operating profit 381.6 0.0 0.0 381.6
Net revaluation increase 0.0 121.6 0.0 121.6
Dividends (refer note 27) (241.7) 0.0 0.0 (241.7)
Balance at 30 June 2005 attributable to the
Commonwealth
1,076.4 337.4 400.0 1,813.8
The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets.
24. AUDITORS’ REMUNERATION
Consolidated ($) Corporation ($)
2005 2004 2005 2004
Audit related to financial statements (1) 1,103,500 858,000 992,000 839,000
Other audit services (performance standards and
acquittal of government grants)
143,300 124,000 143,300 124,000
Other services – contract auditors 85,000 546,000 85,000 546,000
Note 1. Includes amounts paid or payable for work relating to the transition to A-IFRS.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
25. DIRECTORS’ REMUNERATION AND RETIREMENT BENEFITS
FOR THE YEAR ENDED 30 JUNE 2005
The remuneration of the corporation’s non-executive directors is determined independently by the
Commonwealth Remuneration Tribunal. The Board Human Resources Committee is responsible for
reviewing and recommending to the board the remuneration arrangements for the managing director.
These arrangements are then implemented in accordance with remuneration policy and procedural arrangements
approved by the Remuneration Tribunal. Further information relating to the corporation’s remuneration policies is
contained in the corporation’s Corporate Governance Statement.
The remuneration received or due and receivable directly or indirectly by the corporation’s executive and
non-executive directors totalled $2,869,254 (2003–04, $2,552,104). No amounts were paid to directors of
controlled entities (2003–04, Nil) in their capacity as a director of those entities. The remuneration details of
the corporation’s directors is as follows:
Year ended
30 June 2005 Primary benefits ($)
Directors Cash salary
Short-term
incentive
Post employment
benefits ($)
Nonmonetary
benefits (1) Superannuation (2) Termination
Other
benefits ($) Total ($)
Linda Nicholls 130,000 – 81,228 18,590 – 229,818
David Mortimer 87,500 – – 12,513 – 100,013
Graeme John 1,053,300 739,000 43,833 256,299 – 2,092,432
Mark Birrell 65,000 – – 9,295 – 74,295
Margaret Gibson 59,986 – 2,629 8,578 – 71,193
Peter McLaughlin 65,000 – – 9,295 – 74,295
Sandra McPhee 72,500 – – 10,368 – 82,868
Edward Tweddell 72,500 – – 10,368 – 82,868
Ian Warner 53,781 – – 7,691 – 61,472
Year ended
30 June 2004 Primary benefits ($)
Directors Cash salary
Short-term
incentive
Post employment
benefits ($)
Nonmonetary
benefits (1) Superannuation (2) Termination
Other
benefits ($) Total ($)
Linda Nicholls 94,120 – 37,177 13,459 – 144,756
David Mortimer 59,800 – – 8,551 – 68,351
Graeme John 989,666 747,274 44,443 248,382 – 2,029,765
Mark Birrell 40,525 – – 5,795 – 46,320
Peter McLaughlin 46,080 – – 6,589 – 52,669
Sandra McPhee 46,080 – – 6,589 – 52,669
Helen Nugent 46,080 – – 6,589 – 52,669
Edward Tweddell 46,080 – – 6,589 – 52,669
Ian Warner 45,701 – – 6,535 – 52,236
Notes
1. Non-monetary benefits include spouse travel, motor vehicles and other expenses paid on behalf of the directors.
2. The above amounts for superannuation reflect the benefit to be received by the director (calculated at 14.3% of the
director’s salary for superannuation purposes). This amount differs to the cost to the corporation, which was $3,134
(2004, $1,011) for Linda Nicholls, $2,109 (2004, $642) for David Mortimer, $42,636 (2004, $14,937) for Graeme John,
$1,567 (2004, $435) for Mark Birrell, $1,567 (2004, $495) for Peter McLaughlin, $1,446 (2004, $Nil) for Margaret Gibson,
$1,748 (2004, $495) for Sandra McPhee and Edward Tweddell and $1,297 (2004, $491) for Ian Warner. The amount
provided in the prior year for Helen Nugent was $495.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 81 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 82 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
26. EXECUTIVES’ REMUNERATION
Executive officers are those who are concerned with, or take part in, the management of entities in the
consolidated group (excluding the managing director, incorporated into note 25). Remuneration arrangements
for senior executives are reviewed by the managing director. Advice is sought from independent specialised
remuneration consultants to ensure that payments to executives are in line with market practice and are
competitively placed to attract and retain necessary talent for the work required by these roles. Further
information relating to the corporation’s executive remuneration policies is contained in the corporation’s
Corporate Governance Statement.
Remuneration received and due and receivable from entities in the consolidated entity by executive officers
totalled $22,221,265 (2003–04, $19,761,041). The comparative has been adjusted to reflect actual amounts
paid in the current period relating to 2003–04.
The table below shows the remuneration details of the seven executives with the greatest authority within the
corporation:
Year ended
30 June 2005 Primary benefits ($)
Executives Cash salary
Short-term
incentive
Post employment
benefits ($)
Nonmonetary
benefits (1) Superannuation (2) Termination
Other
benefits ($) Total ($)
Robert Finch 128,562 – 97,746 16,913 440,621 683,842
Peter Meehan 416,775 165,569 30,027 78,021 – 690,392
James Marshall 442,923 188,658 12,129 85,062 – 728,772
Bill Mitchell 355,958 148,178 55,671 67,153 – 626,960
Mark Howard 351,165 148,274 14,855 66,596 – 580,890
Alec Ceselli 321,348 95,452 25,067 56,064 – 497,931
Rodney McDonald 295,273 123,117 19,902 55,791 – 494,083
Year ended
30 June 2004 Primary benefits ($)
Executives Cash salary
Short-term
incentive
Post employment
benefits ($)
Other
benefits ($) Total ($)
Nonmonetary
benefits (1) Superannuation (2) Termination
Robert Finch 412,392 138,575 87,327 73,721 – 712,015
Peter Meehan 398,625 118,505 27,367 70,969 – 615,466
James Marshall 398,625 133,105 12,089 70,969 – 614,788
Bill Mitchell 245,978 86,228 16,621 42,256 – 391,083
Mark Howard 325,359 105,682 13,902 56,566 – 501,509
Alec Ceselli 281,729 94,815 27,054 50,492 – 454,090
Rodney McDonald 242,534 85,698 22,833 42,956 – 394,021
Notes
1. Non-monetary benefits include spouse travel, motor vehicles and other expenses paid on behalf of the executives.
2. The above amounts for superannuation reflect the benefit to be received by the executive (calculated at 14.3% of the
executive’s salary for superannuation purposes). This amount differs to the cost to the corporation, which was $2,814
(2004, $4,434) for Robert Finch, $12,979 (2004, $4,268) for Peter Meehan, $14,150 (2004, $4,268) for James Marshall,
$11,171 (2004, $2,541) for Bill Mitchell, $11,079 (2004, $3,402) for Mark Howard, $9,326 (2004, $3,037) for Alec Ceselli
and $9,281 (2004, $2,583) for Rodney McDonald.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
26. EXECUTIVES’ REMUNERATION (CONT.)
2005
No.
FOR THE YEAR ENDED 30 JUNE 2005
Consolidated Corporation
2004
No.
2005
No.
The numbers of executive officers whose remuneration was at least $100,000 are as follows:
Remuneration between:
$100,001 and $110,000 2 1 – 1
$110,001 and $120,000 3 – – –
$130,001 and $140,000 1 – – –
$140,001 and $150,000 2 – – –
$150,001 and $160,000 – 1 – 1
$160,001 and $170,000 – 3 – 3
$170,001 and $180,000 1 1 1 1
$180,001 and $190,000 3 4 3 4
$190,001 and $200,000 2 2 2 2
$200,001 and $210,000 6 5 5 5
$210,001 and $220,000 4 7 4 7
$220,001 and $230,000 2 2 2 2
$230,001 and $240,000 2 3 2 3
$240,001 and $250,000 5 3 5 3
$250,001 and $260,000 3 2 3 2
$260,001 and $270,000 3 3 3 3
$270,001 and $280,000 5 7 5 7
$280,001 and $290,000 1 2 1 2
$290,001 and $300,000 1 2 1 2
$300,001 and $310,000 4 3 4 3
$310,001 and $320,000 1 2 1 2
$320,001 and $330,000 1 – 1 –
$330,001 and $340,000 3 – 3 –
$340,001 and $350,000 2 – 2 –
$350,001 and $360,000 1 2 1 2
$360,001 and $370,000 2 2 2 2
$370,001 and $380,000 – 1 – 1
$380,001 and $390,000 – 1 – 1
$400,001 and $410,000 1 1 1 1
$410,001 and $420,000 1 – 1 –
$420,001 and $430,000 2 – 2 –
$440,001 and $450,000 2 2 2 2
$450,001 and $460,000 – 1 – 1
$460,001 and $470,000 1 – 1 –
$500,001 and $510,000 1 – 1 –
$510,001 and $520,000 – 1 – 1
$520,001 and $530,000 1 – 1 –
$530,001 and $540,000 1 – 1 –
$540,001 and $550,000 – 2 – 2
$560,001 and $570,000 – 1 – 1
$570,001 and $580,000 1 – 1 –
$590,001 and $600,000 – 1 – 1
$600,001 and $610,000 1 – 1 –
$620,001 and $630,000 1 – 1 –
$640,001 and $650,000 – 1 – 1
$650,001 and $660,000 1 – 1 –
$660,001 and $670,000 1 – 1 –
2004
No.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 83 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 84 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
27. DIVIDENDS PAID
2005
$m
Consolidated Corporation
Final ordinary dividend (from prior year results) 111.5 109.1 111.5 109.1
Interim ordinary dividend 130.2 109.4 130.2 109.4
Total dividends paid 241.7 218.5 241.7 218.5
Dividend not recognised as a liability (refer note 1(e)) 156.0 111.5 156.0 111.5
28. RELATED PARTIES
Directors
The following persons were directors of the Australian Postal Corporation during all of the past two financial years
unless otherwise stated: LB Nicholls, DA Mortimer, GT John, MA Birrell (appointed 14 August 2003), MM Gibson
(appointed 2 September 2004), PA McLaughlin, SV McPhee, HM Nugent (retired 30 June 2004), ED Tweddell,
and IK Warner (resigned 27 June 2004 and re-appointed 2 September 2004).
Remuneration and retirement benefits
Information on remuneration of directors and amounts paid in connection with the retirement of directors is disclosed
in note 25.
Transactions with Directors
A number of directors of the Australian Postal Corporation are also directors of other entities that have transacted
with the Australian Postal Corporation group. One of these entities, PricewaterhouseCoopers, is considered to be
a director-related entity of Margaret Gibson. PricewaterhouseCoopers provided services totalling $1.9 million to the
group during the financial year. These transactions have occurred on terms and conditions no more favourable than
those which it is reasonable to expect the group would have adopted if dealing at arm’s length with any third party.
Other transactions with related parties Consolidated Corporation
Payments for collection and delivery services
Joint-venture entities 42.1 39.8 42.1 39.8
Controlled entities – – – –
Payments for management and administrative services
Joint-venture entities 39.1 39.8 39.1 39.8
Controlled entities – – 24.1 8.9
Payments for accommodation
Joint-venture entities 2.0 0.6 2.0 0.6
Revenue from collection and delivery services
Joint-venture entities 11.3 6.3 11.3 6.3
Controlled entities – – 3.4 10.4
Revenue from administrative services
Joint-venture entities 10.8 0.3 10.8 0.3
Controlled entities – – 0.2 0.6
Dividends received (note 30)
Joint-venture entities – – 25.2 7.8
Interest received
Joint-venture entities 10.3 5.1 10.3 5.1
Controlled entities – – 0.6 0.2
Aggregate amounts receivable from and payable to other related parties at balance date were as follows:
Current receivables
Joint-venture entities 1.5 0.8 1.5 0.8
Controlled entities – – 2.2 0.9
Current payables
Joint-venture entities 10.2 9.1 10.2 9.1
Controlled entities – – 10.7 1.8
Loans advanced to
Joint-venture entities 129.0 129.0 129.0 129.0
Controlled entities – – 12.7 8.4
Loans advanced from
Controlled entities – – 1.7 1.7
2005
$m
2004
$m
2004
$m
All transactions with other related parties are conducted on commercial terms and conditions.
2005
$m
2005
$m
2004
$m
2004
$m

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
29. SUPERANNUATION
FOR THE YEAR ENDED 30 JUNE 2005
The corporation is an employer sponsor of the Australia Post Superannuation Scheme (APSS), of which all its
employees are members. Some of the corporation’s current and past employees are also entitled to benefits
under the Superannuation Act 1976.
Australia Post Superannuation Scheme (APSS)
Benefit design Lump sum – employer-financed defined benefit plus
member-financed accumulation benefit.
Basis of employer contribution Under the trust deed contributions are determined by
the corporation on the advice of the scheme’s actuary after
consultation with the trustee, having regard to the assets
and liabilities of the scheme.
Amounts paid or payable by the corporation 2004–05, $35.0 million (2003–04, $15.0 million).
The actuary to the Australia Post Superannuation Scheme is Dr AJ Goddard (FIAA, FIA) of Russell Employee
Benefits Pty Ltd.
In accordance with standard practice and legislative requirements, actuarial reviews are scheduled every
three years. The actuarial review currently used to assess scheme affairs was carried out as at 30 June 2003.
The next review is scheduled as at 30 June 2006. However, to comply with Australian Equivalents to International
Financial Reporting Standards, annual actuarial updates will be required.
Actuarial updates for accrued benefits and vested benefits have been used to prepare the following information.
Net market value of assets held by the APSS to meet
future benefit payments
2005
$m
Consolidated Corporation
2004
$m
2005
$m
2004
$m
4,923.7 4,484.4 4,919.4 4,480.8
Present value of employees’ accrued benefits 3,952.5 3,612.9 3,948.2 3,609.3
Excess of assets held to meet future benefit
payments over the present value of employees’
accrued benefits
971.2 871.5 971.2 871.5
Employer contributions to the APSS 35.0 15.0 35.0 15.0
Vested benefits 3,948.8 3,608.3 3,944.5 3,604.7
Superannuation Act 1976
The superannuation liability under the Superannuation Act 1976 is recognised in the financial statements of the
Commonwealth and is settled by the Commonwealth in due course. The Commonwealth takes full responsibility
for the CSS liabilities for any Australia Post employees (past and present) remaining in the CSS.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 85 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 86 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
30. INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD
2005
$m
Consolidated Corporation
Investment in joint-venture entities 267.3 268.9 257.0 257.0
Interest in joint-venture partnership 6.6 6.1 6.6 6.1
Total investments accounted for
under the equity method
2004
$m
Name Principal activity Balance date
Australian air Express Pty Ltd – ordinary
shares
2005
$m
2004
$m
273.9 275.0 263.6 263.1
Ownership interest
2005 2004
% %
Express air freight 30 June 50.0 50.0
iPrint Corporate Pty Ltd – ordinary shares Printing services 30 June 50.0 50.0
Star Track Express Holdings Pty Ltd
– ordinary shares
Express freight 30 June 50.0 50.0
Wetherill Park Partnership Warehousing facilities 30 June 50.0 50.0
Sai Cheng Logistics International Company
Limited – ordinary shares (2)
International 4PL
logistics services
31 Dec 49.0 0.0
Multi Media Logistics Pty Ltd (1) Logistics services 30 June 50.0 0.0
Notes
1. This investment is held by the corporation’s 100% owned subsidiary JR Haulage Pty Ltd.
2. This investment is held by the corporation’s 100% owned subsidiary AP International Holdings Pty Ltd.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
30. INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD (CONT.)
Investments in joint-venture entities
Share of joint-venture entities’ profits
Share of joint-venture entities:
2005
$m
Consolidated
Revenues 516.4 350.4
Expenses (487.2) (328.1)
Net profits before income tax 29.2 22.3
Income tax expense (12.8) (9.0)
Net profits after income tax 16.4 13.3
Carrying amounts of investments in joint-venture entities
Balance at the beginning of the financial year 268.9 13.5
Acquisitions at cost 7.2 250.0
Transfer to controlled entities 0.0 (0.1)
Share of profits for the year 16.4 13.3
Dividends received/receivable (25.2) (7.8)
Balance at the end of the financial year 267.3 268.9
Share of joint-venture entities’ assets and liabilities
Current assets 78.4 71.6
Non-current assets 384.3 392.8
Current liabilities (58.0) (59.5)
Non-current liabilities (137.4) (136.0)
Net assets 267.3 268.9
Retained profits of the consolidated entity attributable to the joint-venture entities
Balance at the beginning of the financial year 11.9 5.5
Retained losses no longer recognised as attributable to joint-venture entities 0.0 0.9
Share of equity of joint-ventures acquired 3.2 0.0
Share of net profits 16.4 13.3
Dividends received (25.2) (7.8)
Balance at the end of the financial year 6.3 11.9
The consolidated entity’s share of the joint-venture entities’ commitments and contingent liabilities is included in the Schedule
of Commitments and the Schedule of Contingencies respectively.
2004
$m
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 87 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 88 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
30. INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD (CONT.)
Investment in joint-venture partnership
Share of joint-venture partnership profits
Share of joint-venture partnership:
2005
$m
Consolidated Corporation
Revenues 1.0 0.3 1.0 0.3
Expenses (0.5) (0.1) (0.5) (0.1)
Net profits before income tax 0.5 0.2 0.5 0.2
Income tax expense 0.0 0.0 0.0 0.0
Net profits after income tax 0.5 0.2 0.5 0.2
Carrying amounts of investments in joint-venture partnership
Balance at the beginning of the financial year 6.1 0.0 6.1 0.0
Acquisitions at cost 0.5 6.0 0.5 6.0
Share of profits for the year 0.5 0.2 0.5 0.2
Dividends received/receivable (0.5) (0.1) (0.5) (0.1)
Balance at the end of the financial year 6.6 6.1 6.6 6.1
Share of joint-venture partnership assets and liabilities
Current assets 0.3 0.1 0.3 0.1
Non-current assets 13.1 13.0 13.1 13.0
Current liabilities (0.3) 0.0 (0.3) 0.0
Non-current liabilities (9.4) (9.4) (9.4) (9.4)
Net assets 3.7 3.7 3.7 3.7
2004
$m
Retained profits of the consolidated entity attributable to the joint-venture partnership
Balance at the beginning of the financial year 0.1 0.0 0.1 0.0
Share of net profits 0.5 0.2 0.5 0.2
Dividends received (0.5) (0.1) (0.5) (0.1)
Balance at the end of the financial year 0.1 0.1 0.1 0.1
The consolidated entity’s share of the joint-venture partnership’s commitments and contingent liabilities is included in the
Schedule of Commitments and the Schedule of Contingencies respectively.
2005
$m
2004
$m

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
31. ANALYSIS OF PROPERTY, PLANT & EQUIPMENT AND INTANGIBLES
Consolidated Land
$m
Buildings
$m
Total
land &
buildings
$m
P&E
$m
Computer
software
$m
FOR THE YEAR ENDED 30 JUNE 2005
Other
intangibles
$m
Total
intangibles
$m
Reconciliation of the opening and closing balances of property, plant & equipment and intangibles
As at 30 June 2004
Gross book value 498.6 647.7 1,146.3 587.3 434.9 2.8 437.7 2,171.3
Accumulated
depreciation/
amortisation
Total
$m
0.0 0.0 0.0 0.0 (364.8) (0.9) (365.7) (365.7)
Net book value (1) 498.6 647.7 1,146.3 587.3 70.1 1.9 72.0 1,805.6
Additions by purchase 6.0 50.7 56.7 67.7 35.0 0.0 35.0 159.4
Additions through
acquisition of subsidiary
Net revaluation
increment/(decrement)
Depreciation/
amortisation expense
0.0 0.7 0.7 9.1 0.0 52.3 52.3 62.1
143.5 (21.9) 121.6 0.0 0.0 0.0 0.0 121.6
0.0 (45.4) (45.4) (103.1) (35.2) (1.2) (36.4) (184.9)
Disposals (16.7) (3.4) (20.1) (10.3) (0.3) 0.0 (0.3) (30.7)
As at 30 June 2005
Gross book value 631.4 628.4 1,259.8 550.7 462.2 55.1 517.3 2,327.8
Accumulated
depreciation/
amortisation
0.0 0.0 0.0 0.0 (392.6) (2.1) (394.7) (394.7)
Net book value (1) 631.4 628.4 1,259.8 550.7 69.6 53.0 122.6 1,933.1
From a fair value perspective, the group has followed the accounting policies set out in note 1.
The above table reflects the original cost and accumulated depreciation on these assets.
Property, plant & equipment and intangibles at fair value
As at 30 June 2005
Gross book value 631.4 628.4 1,259.8 550.7 0.0 0.0 0.0 1,810.5
Accumulated
depreciation/
amortisation
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fair value 631.4 628.4 1,259.8 550.7 0.0 0.0 0.0 1,810.5
As at 30 June 2004
Gross book value 498.6 647.7 1,146.3 587.3 0.0 0.0 0.0 1,733.6
Accumulated
depreciation/
amortisation
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fair value 498.6 647.7 1,146.3 587.3 0.0 0.0 0.0 1,733.6
Reconciliation of the opening and closing balances of plant and equipment assets held under finance lease at fair value
As at 30 June 2004 0.0 0.0 0.0 125.0 0.0 0.0 0.0 125.0
Acquisitions 0.0 0.0 0.0 3.3 0.0 0.0 0.0 3.3
Amortisation for the period 0.0 0.0 0.0 (12.7) 0.0 0.0 0.0 (12.7)
As at 30 June 2005 0.0 0.0 0.0 115.6 0.0 0.0 0.0 115.6
Property, plant & equipment and intangibles under construction
Gross value at
30 June 2005
Gross value at
30 June 2004
0.0 43.6 43.6 5.0 21.9 0.0 21.9 70.5
0.0 21.9 21.9 8.4 6.9 0.0 6.9 37.2
Note
1. Buildings includes leasehold improvements with a net book value of $47.2 million (2003–04, $41.3 million).
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 89 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 90 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
31. ANALYSIS OF PROPERTY, PLANT & EQUIPMENT AND INTANGIBLES (CONT.)
Corporation Land
$m
Buildings
$m
Total
land &
buildings
$m
P&E
$m
Computer
software
$m
Other
intangibles
$m
Total
intangibles
$m
Reconciliation of the opening and closing balances of property, plant & equipment and intangibles
As at 30 June 2004
Gross book value 498.6 647.7 1,146.3 582.4 433.4 2.8 436.2 2,164.9
Accumulated
depreciation/
amortisation
Total
$m
0.0 0.0 0.0 0.0 (364.6) (0.9) (365.5) (365.5)
Net book value (1) 498.6 647.7 1,146.3 582.4 68.8 1.9 70.7 1,799.4
Additions by purchase 6.0 50.7 56.7 66.2 34.5 0.0 34.5 157.4
Net revaluation
increment/(decrement)
Depreciation/
amortisation expense
143.5 (21.9) 121.6 0.0 0.0 0.0 0.0 121.6
0.0 (45.4) (45.4) (100.8) (34.9) (0.4) (35.3) (181.5)
Disposals (16.7) (3.4) (20.1) (9.7) 0.0 0.0 0.0 (29.8)
As at 30 June 2005
Gross book value 631.4 627.7 1,259.1 538.1 460.5 2.8 463.3 2,260.5
Accumulated
depreciation/
amortisation
0.0 0.0 0.0 0.0 (392.1) (1.3) (393.4) (393.4)
Net book value (1) 631.4 627.7 1,259.1 538.1 68.4 1.5 69.9 1,867.1
From a fair value perspective, the corporation has followed the accounting policies set out in note 1.
The above table reflects the original cost and accumulated depreciation on these assets.
Property, plant & equipment and intangibles at fair value
As at 30 June 2005
Gross book value 631.4 627.7 1,259.1 538.1 0.0 0.0 0.0 1,797.2
Accumulated
depreciation/
amortisation
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fair value 631.4 627.7 1,259.1 538.1 0.0 0.0 0.0 1,797.2
As at 30 June 2004
Gross book value 498.6 647.7 1,146.3 582.4 0.0 0.0 0.0 1,728.7
Accumulated
depreciation/
amortisation
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fair value 498.6 647.7 1,146.3 582.4 0.0 0.0 0.0 1,728.7
Reconciliation of the opening and closing balances of plant and equipment assets held under finance lease at fair value
As at 30 June 2004 0.0 0.0 0.0 125.0 0.0 0.0 0.0 125.0
Amortisation for the period 0.0 0.0 0.0 (12.5) 0.0 0.0 0.0 (12.5)
As at 30 June 2005 0.0 0.0 0.0 112.5 0.0 0.0 0.0 112.5
Property, plant & equipment and intangibles under construction
Gross value at
30 June 2005
Gross value at
30 June 2004
0.0 43.6 43.6 5.0 21.9 0.0 21.9 70.5
0.0 21.9 21.9 8.4 6.9 0.0 6.9 37.2
Note
1. Buildings includes leasehold improvements with a net book value of $46.5 million (2003–04, $41.3 million).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
32. PROVISIONS – MOVEMENT SCHEDULE
Consolidated
Leave
$m
Workers’
compensation
$m
FOR THE YEAR ENDED 30 JUNE 2005
Separations &
redundancies
$m
Other
employee
$m
Balance at 1 July 2004 409.2 111.7 27.5 16.7
Amount recognised / (derecognised) during
the year
189.7 38.2 7.6 26.1
Acquisition of subsidiary 1.3 0.0 0.0 0.0
Payments made during the year (157.1) (26.4) (16.6) (18.0)
Balance at 30 June 2005 443.1 123.5 18.5 24.8
Corporation
Balance at 1 July 2004 407.9 111.7 27.4 16.7
Amount recognised / (derecognised)
during the year
188.7 38.1 7.5 25.9
Payments made during the year (156.8) (26.3) (16.5) (18.0)
Balance at 30 June 2005 439.8 123.5 18.4 24.6
33. FINANCIAL INSTRUMENTS
(a) Derivative instruments
The corporation is a party to derivative financial instruments in the normal course of business in order to hedge
exposure to fluctuations in interest rates, foreign exchange rates and commodity prices. Reference should also
be made to note 1(t) relating to derivative financial instruments.
Forward exchange contracts and option contracts
With respect to capital equipment sourced internationally, the corporation has entered into forward exchange
contracts to purchase United States dollars (USD) and Euros (EUR). The contracts are timed to mature when
major shipments of equipment are scheduled for delivery and payment.
With respect to international trading transactions, the corporation has entered into forward exchange contracts
to sell New Zealand dollars (NZD). The contracts are timed to mature when accumulated receipts have reached
a predetermined level.
Exposure to commodity and currency prices arise through the corporation’s use of fuel. The corporation has
entered into option and commodity swap contracts to hedge commodity and foreign exchange exposures
arising from its consumption of fuel. The contracts are timed to mature on a monthly basis.
Trading exposures arise as a result of obligations with overseas postal administrations (refer note 1(t)) and are
invoiced in Special Drawing Rights (SDR) and settled in Euro and USD.
The SDR is a basket currency composed of fixed quantities of the four major traded currencies (USD, Yen,
Euro and Pound Sterling). The composition of the basket is set by the International Monetary Fund.
In the following table the “Buy” amounts represent the Australian dollar (AUD) equivalent of commitments
to purchase foreign currencies and the “Sell” amounts represent the AUD equivalent of commitments to sell
foreign currencies.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 91 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 92 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
33. FINANCIAL INSTRUMENTS (CONT.)
At balance date, the details of outstanding forward exchange, option and swap contracts are:
Currency
Buy USD
Average
exchange rate
2005 2004
AUD
$m
Average
exchange rate
0–6 months 0.7309 1.7 0.6984 10.2
7–24 months – – 0.7104 6.7
Buy EUR
0–6 months 0.5868 0.1 0.5727 29.2
7–24 months – – 0.5375 0.7
Buy CHF
0–6 months – – 0.8441 1.2
Sell USD
0–6 months – – 0.7009 10.4
Sell NZD
0–6 months 1.0841 5.5 1.1233 4.6
Commodity
Buy Oil
Swap contracts
Average
exchange
price (A$)
AUD
$m
Average
exchange
price (A$)
0–6 months 81.17 7.2 – –
7–24 months 84.33 8.6 – –
Option contracts
0–6 months – – 52.14 0.5
Swap and option contracts relating to Gas Oil (80%) and Kerosene (20%) are dealt in AUD.
All forward exchange, swap and option contracts are entered into on the basis of known or projected obligations.
As some of these contracts are to hedge anticipated future purchases of capital equipment, any gains and losses
on the contracts, together with the cost of the contracts, are deferred and will be recognised in the measurement
of the underlying transaction. The unrealised gains or losses on the remaining contracts are accounted for in
accordance with note 1(u).
The following gains, losses and costs arising from currency and commodity contracts have been deferred:
AUD equivalents
2005
1 year or less
$m
Maturing in
Over 1–5 years
$m
AUD
$m
AUD
$m
More than 5 years
$m
Unrealised gains 1.3 0.0 0.0
Unrealised losses (0.1) 0.0 0.0
Net gain/(loss) 1.2 0.0 0.0
2004
Unrealised gains 0.5 0.0 0.0
Unrealised losses (0.5) 0.0 0.0
Net gain/(loss) 0.0 0.0 0.0
Gains and losses relating to plant and equipment are included in the capitalised cost. Gains and losses relating to
future fuel purchases are treated as deferred income in the Statement of Financial Position.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
33. FINANCIAL INSTRUMENTS (CONT.)
Interest rate swaps/forward interest rate agreements
FOR THE YEAR ENDED 30 JUNE 2005
All interest swap contracts and forward interest rate agreements are entered into on the basis of known
borrowing obligations. As these contracts are utilised to hedge against the impact of movements in market
interest rates, any gains or losses on the contracts are accounted for on the same basis as the underlying
borrowing exposures being hedged. Accordingly, hedge gains and losses on these contracts are deferred and
brought to account when the offsetting gains and losses arising on related borrowings are recognised. The
following gains and losses arising from interest rate swaps and forward interest rate agreements were deferred:
2005
1 year or less
$m
Maturing in
Over 1–5 years
$m
More than 5 years
$m
Realised gains/(losses) deferred 0.2 0.4 0.0
Unrealised gains/(losses) deferred 0.0 3.8 0.0
Net gain/(loss) 0.2 4.2 0.0
2004
Realised gains/(losses) deferred (1.7) (6.5) 0.0
Unrealised gains/(losses) deferred (0.9) 7.6 0.0
Net gain/(loss) (2.6) 1.1 0.0
(b) Credit risk exposures
The credit risk on financial assets of the corporation which have been recognised in the Statement of Financial
Position is generally the carrying amount, net of any provisions for doubtful debts. The financial assets recognised
in the Statement of Financial Position exclude amounts receivable arising from unrealised gains on derivative
financial instruments.
For financial instruments, including derivatives, credit risk also arises from the potential failure of counterparties to
meet their obligations under the respective contracts at maturity. Counterparties are entities of at least “investment
grade” as rated by Standard & Poor’s (Australia). A material exposure may arise from financial instruments and the
corporation may become exposed to loss in the event that counterparties fail to deliver the contracted amount.
The corporation does not have a significant exposure to any individual counterparty. At balance date the following
amounts are receivable:
AUD equivalents
Foreign exchange contracts 0.4 3.8
Commodity swap contracts 3.0 0.5
Interest rate swap contracts 24.0 28.5
2005
$m
2004
$m
27.4 32.8
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 93 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 94 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
33. FINANCIAL INSTRUMENTS (CONT.)
(c) Interest rate risk exposures
The corporation’s exposure to interest rate risks and the effective interest rates of financial assets and financial
liabilities are set out below. All amounts reflect the consolidated position.
AUD equivalents Notes
2005 financial assets
Floating
interest
rate $m
1 year or
less $m
Fixed interest
rate maturing in
Over 1
to 5 years
$m
More than
5 years $m
Noninterest
bearing $m
Total $m
Average interest
rate
Cash 317.0 0.0 0.0 0.0 251.7 568.7 5.55 –
Receivables 6, 10 0.0 6.5 26.0 200.1 354.0 586.6 – 7.22
Accrued revenue 0.0 0.0 0.0 0.0 68.2 68.2 – –
Other 15 0.0 0.0 0.0 0.0 5.0 5.0 – –
Total financial assets 317.0 6.5 26.0 200.1 678.9 1,228.5
2005 financial liabilities
Suppliers – trade
creditors
17 0.0 0.0 0.0 0.0 249.2 249.2 – –
Agency creditors 17 0.0 0.0 0.0 0.0 189.1 189.1 – –
Debt 19 0.0 0.0 531.8 0.0 0.0 531.8 – 5.78
IRS/FRA’s 530.0 0.0 (530.0) 0.0 0.0 0.0 5.62 6.07
Total financial liabilities 530.0 0.0 1.8 0.0 438.3 970.1
2005 net financial assets (213.0) 6.5 24.2 200.1 240.6 258.4
2004 financial assets
Cash 226.7 0.0 0.0 0.0 229.2 455.9 5.37 –
Receivables 6, 10 0.0 6.5 26.0 200.1 306.3 538.9 – 7.22
Accrued revenue 0.0 0.0 0.0 0.0 63.4 63.4 – –
Other 15 0.0 0.0 0.0 0.0 5.0 5.0 – –
Total financial assets 226.7 6.5 26.0 200.1 603.9 1,063.2
2004 financial liabilities
Suppliers – trade creditors 17 0.0 0.0 0.0 0.0 286.8 286.8 – –
Agency creditors 17 0.0 0.0 0.0 0.0 161.4 161.4 – –
Debt 19 0.0 0.0 530.0 0.0 0.0 530.0 – 5.84
Interest rate swaps/forward
interest rate agreements
430.0 100.0 (530.0) 0.0 0.0 0.0 5.48 6.07
Total financial liabilities 430.0 100.0 0.0 0.0 448.2 978.2
2004 net financial assets (203.3) (93.5) 26.0 200.1 155.7 85.0
Reconciliation of net financial assets to net assets Note
Net financial assets as above 258.4 85.0
Non-financial assets and liabilities:
Inventories 7 67.6 59.4
Other current assets 9 48.8 55.3
Tax assets 8, 14 210.5 205.2
Investments (equity accounted) 11 273.9 275.0
Land and buildings 12, 31 1,259.8 1,146.3
Plant and equipment 12, 31 550.7 587.3
Intangibles 13, 31 122.6 72.0
Deferred interest cost 9, 15, 21 (0.4) 8.1
Provisions 16, 20 (609.9) (565.1)
Tax liabilities 18, 22 (177.3) (190.4)
Other liabilities 17, 21 (190.3) (178.5)
Net assets per Statement of Financial Position 1,814.4 1,559.6
Floating %
2005
$m
Fixed %
2004
$m

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
33. FINANCIAL INSTRUMENTS (CONT.)
(d) Net fair value of financial assets and liabilities
(i) Recognised in the Statement of Financial Position
FOR THE YEAR ENDED 30 JUNE 2005
The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial
liabilities approximates their carrying value. Where the individual carrying value of debt and interest rate swap
transactions has changed, the items have not been restated as the total approximates the total carrying value.
The net fair value of other monetary financial assets and financial liabilities is based on market prices (where a
market exists) or by discounting the expected future cash flows by the current interest rates for assets and
liabilities with similar risk profiles.
Financial assets and liabilities whose carrying values approximate net fair values are omitted. For forward
exchange and commodity contracts, the net fair value represents the unrealised gain or loss recognised at
balance date, calculated by reference to the current spot rates.
The carrying amounts and net fair values of financial assets and liabilities at balance date are as follows:
Financial assets
Carrying
amount
$m
2005 2004
Net fair
value
$m
Carrying
amount
$m
Net fair
value
$m
Floating rate notes and promissory notes 207.7 207.7 124.1 124.7
Loan to joint-venture entity 129.0 131.6 129.0 143.7
Financial liabilities
Debt 530.0 533.8 530.0 537.5
Derivatives
Financial assets
Interest rate swaps 0.0 3.8 3.5 10.2
Currency and commodity contracts 0.0 1.2 0.0 (0.1)
(ii) Not recognised in the Statement of Financial Position
The corporation has potential financial liabilities which may arise as described in the Schedule of
Contingencies. No material loss is anticipated in respect of any of those contingencies and the net fair value
disclosed below is the estimated amount which would be payable by the group as consideration for the
assumption of those contingencies by another party.
Contingencies – net fair value 421.5 413.1
2005
$m
2004
$m
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 95 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 96 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
34. SEGMENT INFORMATION
Primary reporting –
business segments (1) Letters
2005
Revenue
$m
Parcels &
logistics $m
Retail &
agency
services $m
Other &
unallocated
$m
Revenue from external parties 2,560.0 928.0 672.3 146.3 4,306.6
Inter-segment sales – – – – –
Total sales revenue 2,560.0 928.0 672.3 146.3 4,306.6
Share of net profit of joint-
venture entities
Total
$m
– – – 16.9 16.9
Total segment revenue 2,560.0 928.0 672.3 163.2 4,323.5
Result
Segment result 248.3 184.8 63.4 28.0 524.5
Profit from ordinary activities
before income tax expense
Income tax expense (149.6)
Net profit 374.9
Assets
Segment assets 1,548.1 551.3 537.6 851.5 3,488.5
Investments in joint ventures – – – 273.9 273.9
Total assets 1,548.1 551.3 537.6 1,125.4 3,762.4
Liabilities
Segment liabilities 726.7 182.3 306.6 732.4 1,948.0
Acquisitions of PP&E and
intangible assets
Depreciation and amortisation
expense
2004
Revenue
524.5
103.4 99.6 17.0 1.5 221.5
122.7 42.0 19.5 0.7 184.9
Revenue from external parties 2,528.5 846.3 639.8 133.0 4,147.6
Inter-segment sales – – – – –
Total sales revenue 2,528.5 846.3 639.8 133.0 4,147.6
Share of net profit of joint-
venture entities
– – – 13.5 13.5
Total segment revenue 2,528.5 846.3 639.8 146.5 4,161.1
Result
Segment result 305.2 143.4 60.0 12.5 521.1
Profit from ordinary activities
before income tax expense
Income tax expense (150.0)
Net profit 371.1
Assets
Segment assets 1,522.1 487.8 486.6 700.3 3,196.8
Investments in joint ventures – – – 275.0 275.0
Total assets 1,522.1 487.8 486.6 975.3 3,471.8
Liabilities
Segment liabilities 741.7 170.6 274.5 725.4 1,912.2
Acquisitions of PP&E and
intangible assets
Depreciation and amortisation
expense
521.1
114.1 85.1 13.0 2.8 215.0
127.8 42.1 31.1 3.1 204.1

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
34. SEGMENT INFORMATION (CONT.)
Secondary reporting –
geographical segments
Segment revenues
from sales to
external customers Segment assets
2005
$m
2004
$m
FOR THE YEAR ENDED 30 JUNE 2005
Acquisitions of PP&E
and intangible assets
Domestic 3,889.4 3,728.4 3,463.9 3,203.3 182.4 203.7
International 434.1 432.7 298.5 268.5 39.1 11.3
2005
$m
2004
$m
2005
$m
2004
$m
4,323.5 4,161.1 3,762.4 3,471.8 221.5 215.0
Note
1. The group has changed the primary reporting business segments it discloses to better reflect the way the group is
managed. The previous segments were Letters, Parcels, International mail, Retail and financial services and Philatelic.
The current primary segments are Letters, Parcels and logistics, and Retail and agency services. The comparative
information has been adjusted to reflect the revised classification.
Notes to and forming part of the segment information
(a) Business segments
Letters
The collection, processing and distribution of letters and associated services.
Parcels and logistics
The processing and distribution of parcels (prepaid and cash-on-delivery), and the provision of associated
logistical services.
Retail and agency services
Provision of postal products and services, agency services and other retail merchandise, principally
stationery, telephony, greeting cards, gifts and souvenirs.
Other and unallocated
Includes items not allocated to product groups – primarily taxation, loans receivable, investments in jointventure
entities and other non-operating items (principally interest, government grants, asset consideration
and rent).
(b) Geographical segments
Domestic
The provision of mail, retail and financial services in each Australian state and territory.
International
The acceptance and delivery of mail to overseas destinations and the delivery of mail originating from overseas.
(c) Accounting policies
Segment accounting policies are the same as described in note 1.
Segment revenues, expenses, assets and liabilities are those that are directly attributable to a segment and
the relevant portion that can be allocated to the segment on a reasonable basis. Segment assets include all
assets used by a segment and consist primarily of operating cash, receivables, inventories, property, plant and
equipment, computer software and goodwill, net of related provisions. Segment liabilities consist primarily of
trade and other creditors, employee entitlements and advance receipts.
(d) Inter-segment sales and transfers
Segment revenues, expenses and results include sales and transfers between segments. Such transactions
generally are priced on an arm’s-length basis and are eliminated on consolidation.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 97 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 98 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
35. LEASES
(i) Operating leases
The corporation leases a total of 760 properties. These are under operating leases with various occupancy terms that
are due to expire in the next one to ten years. The leased property portfolio comprises 33 commercial, 218 industrial,
19 residential and 490 retail sites. Leases generally provide the corporation with a right of renewal, at which time
the commercial terms are renegotiated. Lease payments generally comprise a base amount plus an incremental
contingent rental based on movements in the Consumer Price Index and reviews to market-based levels.
The corporation has a small portion of its passenger vehicle fleet under operating leases (generally over three
years) and has some minor items of plant and equipment under operating leases.
Minimum lease payments 85.4 83.8
Contingent rentals 6.9 7.0
Operating lease rentals (refer note 3) 92.3 90.8
(ii) Finance lease receivable
The corporation has a finance lease receivable relating to the disposal in 1996–97 of the Sydney GPO heritage
site under a 99 year lease. The agreement includes a seven-year rent-free period to the lessee, followed by a
guaranteed minimum rental.
Reconciliation of minimum lease payments to lease receivable:
Gross minimum finance lease rentals receivable 588.3 594.8
Lease finance revenue not yet recognised (484.7) (491.2)
Finance lease receivable 103.6 103.6
Minimum finance lease rentals receivable:
(a) within one year 6.5 6.5
(b) from one year to five years 26.0 26.0
(c) over five years 555.8 562.3
Total 588.3 594.8
The lease commitments receivable at year-end equal the minimum lease payments, as there are no material contingent
payments or unguaranteed residual value relating to this lease agreement.
(iii) Finance lease payable
The group has certain hire purchase and finance lease agreements. The present value of these minimum lease
payments is $1.8m. These payments will be made on a period between 0 and 5 years.
36. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of cash
For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks, promissory notes
and floating rate notes. Cash on hand at the end of the financial year as shown in the Statement of Cash Flows
is reconciled to the related items in the Statement of Financial Position as follows:
2005
$m
2005
$m
2004
$m
Consolidated Corporation
Cash on hand 361.0 331.8 358.1 328.7
Promissory notes 202.7 89.1 202.7 89.1
Floating-rate notes 5.0 35.0 5.0 35.0
Total cash 568.7 455.9 565.8 452.8
2004
$m
2005
$m
2004
$m

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
36. NOTES TO THE STATEMENT OF CASH FLOWS (CONT.)
FOR THE YEAR ENDED 30 JUNE 2005
(b) Reconciliation of net profit after income tax to net cash provided from activities
Consolidated Corporation
Net profit after income tax 374.9 371.1 381.6 368.2
Depreciation and amortisation 184.9 204.1 181.5 202.5
Share of profits of associates not
received as dividend
2005
$m
2004
$m
2005
$m
2004
$m
9.6 (5.6) 0.0 0.0
(Increase)/decrease in debtors (17.0) 12.6 (23.3) 12.6
(Increase)/decrease in inventories (8.2) (8.3) (8.2) (8.3)
(Increase)/decrease in interest receivable (0.2) (0.6) (0.2) (0.6)
(Increase)/decrease in other current assets 7.1 (7.6) 7.2 (7.0)
(Increase)/decrease in future income tax benefit (5.3) 9.8 (5.3) 9.0
Increase/(decrease) in creditors and other payables (18.8) (82.5) (9.2) (84.4)
Increase/(decrease) in accrued interest expenditure 4.0 5.7 12.1 5.7
Increase/(decrease) in advance receipts 1.1 9.6 1.4 9.2
Increase/(decrease) in employee entitlements 44.8 (27.7) 42.6 (28.5)
Increase/(decrease) in income tax payable (9.2) (23.6) (9.8) (23.6)
Increase/(decrease) in deferred income tax (3.9) (15.6) (3.9) (15.5)
Net (gains)/losses from sales of
property, plant and equipment
(11.9) (8.4) (12.8) (8.4)
177.0 61.9 172.1 62.7
Net cash from operating activities 551.9 433.0 553.7 430.9
Loan facilities
Fully drawn loan facilities of $530.0 million (2004, $530.0 million) and $1.8 million (2004, $0.0 million), hire
purchase and finance leases were held at 30 June 2005 (refer note 19).
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 99 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 100 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
36. NOTES TO THE STATEMENT OF CASH FLOWS (CONT.)
(c) Detail of the acquisitions of the controlled entities
On 31 March 2005 the corporation acquired 100% of the issued share capital of JR Haulage Pty Ltd.
JR Haulage Pty Ltd was involved in logistics at the date of acquisition.
On 1 March 2005 the corporation acquired 100% of the issued share capital of SnapX Pty Ltd. SnapX Pty Ltd
performed courier services at the date of acquisition.
On 23 December 2003 the corporation acquired a further 50% interest in Decipha Pty Ltd. This resulted in
this entity becoming 100% owned by the corporation. Decipha Pty Ltd performed mailroom solutions
services at the date of acquisition.
The operating results of these newly controlled entities have been included in the consolidated statement
of financial performance since the date of the acquisition.
Details of the acquisitions are as follows:
Consideration comprising:
Cash 53.8 1.5
Contingent amount due for payment in year ending 30 June 2006 1.3 –
Contingent amount due for payment in year ending 30 June 2007 4.0 –
Cash receivable from purchase price adjustments (5.4) –
Acquisition costs 1.6 –
Total consideration 55.3 1.5
Fair value of identifiable net assets of controlled entity acquired
Cash 2.2 2.5
Receivables 12.3 1.6
Prepayments 0.6 0.3
Property, plant and equipment 9.8 0.8
Intangible assets 7.0 –
Investments 4.0 0.0
Payables (11.9) (1.6)
Loans (14.0) (1.2)
Other 0.1 (1.6)
2005
$m
2004
$m
10.1 0.8
Less: Shares already owned – (0.4)
Add: Outside equity interests (0.1) –
10.0 0.4
Goodwill on consolidation 45.3 1.1
Total consideration 55.3 1.5
Outflow of cash to acquire controlled entity:
2005
$m
Consolidated Corporation
Cash consideration 53.8 0.0 53.8 1.5
Less: Cash balances acquired 2.2 0.0 0.0 2.5
Outflow / (inflow) of cash 51.6 0.0 53.8 (1.0)
2004
$m
(d) Reconciliation of cash paid for controlled and joint-venture entities
The amount paid for investments in controlled entities per the corporation cash flow reflects the outflow of
cash per note 36(c), the additional amount paid for the investment in AP International Holdings Pty Ltd ($4.0m),
and acquisition costs paid ($1.5m).
On consolidation, this amount is reduced by the reclassification of $8.0m (being the joint-venture investments
in Sai Cheng Logistics International Company Limited and Multi Media Logistics Pty Ltd) and the cash acquired
upon purchase of the JR Haulage Group and SnapX Pty Ltd.
2005
$m
2004
$m

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
37. EVENTS AFTER BALANCE DATE
On 1 July 2005, the corporation, through its wholly
owned subsidiary Printsoft Holdings Pty Ltd, acquired
100% of the share capital of PrintSoft Developments
Pty Ltd and 100% of share capital of PrintSoft Systems
GmbH. The aggregate cost of the investment is
estimated to be $8.7m.
38. ADOPTION OF AUSTRALIAN
EQUIVALENTS TO INTERNATIONAL
FINANCIAL REPORTING STANDARDS
The corporation is in the process of transitioning its
accounting policies and financial reporting from the
Finance Minister’s Orders (FMOs) based on current
Australian Accounting Standards (AGAAP), to FMOs
based on Australian Equivalents to International
Financial Reporting Standards (A-IFRS) which will be
applicable for the financial year ended 30 June 2006.
In 2003, the corporation allocated internal resources
and engaged expert consultants to conduct impact
assessments to identify key areas that would be
impacted by the transition to A-IFRS.
As a result, the corporation established project teams
to address each of the areas in order of priority. An
A-IFRS steering committee was established to oversee
the progress of each of the project teams and make
necessary decisions. Priority has been given to the
FOR THE YEAR ENDED 30 JUNE 2005
preparation of an opening balance sheet in accordance
with A-IFRS as at 1 July 2004, the corporation’s transition
date to A-IFRS. This will form the basis of accounting for
A-IFRS in the future and is required when the corporation
prepares its first fully A-IFRS compliant financial report
for the year ended 30 June 2006.
Set out in the table below are the key areas where
accounting policies are expected to change on
adoption of A-IFRS and the corporation’s best
estimate of the quantitative impact of the changes
on total equity as at the date of the transition.
The figures disclosed are management’s best
estimates of the quantitative impact of the changes
on total equity as at the date of transition, 1 July 2004,
at the date of preparing the 30 June 2005 financial
report. The actual effects of transition to A-IFRS may
differ from the estimates disclosed due to:
° ongoing work being undertaken by the A-IFRS
project teams
° potential amendments to A-IFRSs and
interpretations thereof being issued by the
standard-setters and IFRIC
° emerging accepted practice in the interpretation
and application of A-IFRS and UIG Interpretations
° Finance Briefs issued by the Accounting and
Policy Branch of the Department of Finance and
Administration.
Reconciliation of equity as presented under AGAAP to that under A-IFRS
Consolidated
$m (1)(2)
Corporation
$m (1)
Total equity under AGAAP at 1 July 2004 1,559.6 1,552.3
Adjustments to retained earnings (net of tax):
Recognition of defined benefit pension asset (i) 677.5 677.5
Adjustment from asset revaluations (ii) (29.6) (29.6)
Transfer to asset revaluation reserve (iii) (215.4) (215.4)
Deferral of grant income (iv) (6.4) (6.4)
Taxation adjustments (v) 58.2 58.2
Adjustments to other reserves
Transfer to asset revaluation reserve (iii) 215.4 215.4
Tax effect on revalued assets (v) (52.3) (52.3)
Total equity under A-IFRS 2,207.0 2,199.7
Notes
1. This represents the adjustments as at the date of transition to A-IFRS.
2. At transition balance date there were no material adjustments arising from the assessment of the corporation’s
controlled and associated entities.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 101 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
| 102 |
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
38. ADOPTION OF AUSTRALIAN
EQUIVALENTS TO INTERNATIONAL
FINANCIAL REPORTING STANDARDS (CONT.)
Notes
The notes below provide descriptions of the
adjustments included in the net equity reconciliation
of the corporation as at 1 July 2004 shown above.
In addition, these notes describe the currently known
impacts on the 2005 balance sheet and profit and
loss as a result of the implementation of A-IFRS.
Management is in the process of completing the
corporation’s A-IFRS balance sheet as at 30 June 2005
and the A-IFRS income statement for the year ended
30 June 2005.
(i) The corporation has elected to adopt early the
revised standard, AASB 119 Employee Benefits
(December 2004 version). Under this standard
the corporation will recognise the net surplus
in its employer-sponsored defined benefit fund
as an asset. This differs to the existing policy
where amounts relating to the fund remain off
balance sheet. The recognised asset will be
subject to future changes in value resulting from
movements in the fair value of the assets of the
fund and changes in the underlying defined benefit
obligation. Independent actuaries have been
engaged to assist in calculating the impacts of
AASB 119 on the corporation.
The implementation of A-IFRS also impacts the
superannuation expense. Under current accounting
policies, superannuation expense is recorded
when cash contributions are made to the fund.
The accounting policy the corporation has adopted
under AASB 119 requires the inclusion of the
current service cost, interest cost, expected return
on plan assets and past service cost as part of the
superannuation expense. Under AASB 119, the
corporation will recognise actuarial gains and losses
directly in the statement of changes in shareholder’s
equity. The implementation of AASB 119 is expected
to reduce the 2005 earnings of the corporation
compared to the existing accounting policy.
(ii) Under AASB 116, Property, Plant and Equipment,
the corporation is required to perform valuations on
an asset-by-asset basis rather than the current basis
where certain valuations are performed on a class
basis. If AASB 116 had been applied historically,
certain assets would have been reduced in value
when valued on an individual asset basis.
(iii) Under AASB 116, Property, Plant and Equipment, the
corporation is required to account for revaluations
of assets on an asset-by-asset basis rather than the
current basis where valuation re-assessments are
accounted for on a class basis. If AASB 116 had
historically been applied to the corporation, certain
devaluations that had been applied to the asset
revaluation reserve would have been required to be
taken directly to the income statement. The effect
of this is a reduction in retained earnings and an
increase in the asset revaluation reserve on adoption
of AASB 116.
(iv) Under AASB 120 Government Grants, grant income
is matched according to the pattern of benefit
or obligation. Accordingly, any unearned income
will be deferred rather than be recognised where
the corporation has control of the grant, as is the
case under the existing accounting policy. This
results in a decrease in net equity upon adoption
of AASB 120. The introduction of AASB 120
will increase 2005 earnings.
(v) Under AASB 112 Income Taxes, the corporation
would be required to use a balance sheet liability
method, rather then the current income statement
method which recognises deferred tax balances
where there is a difference between the carrying
value of an asset or liability and its tax base. The
primary impact of this approach is the recognition
of a deferred tax liability in relation to the revalued
assets. Under the existing accounting policy the tax
effect of asset revaluations was not recognised.
Further, as a result of recognising deferred tax
liabilities in relation to the revaluation of land,
unused tax capital losses will be recognised on the
balance sheet as an asset.
The above changes will result in an increase in the
net deferred tax liability under A-IFRS at transition
balance sheet as follows:
Retained earnings
impact of items (i)
to (v) above
Reserves impact of
item (v) above
Increase in deferred
tax liability
Consolidated
$m
Corporation
$m
218.2 218.2
52.3 52.3
270.5 270.5
No other material adjustments to deferred taxes would
be expected on adoption of AASB 112 Income Taxes.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
38. ADOPTION OF AUSTRALIAN
EQUIVALENTS TO INTERNATIONAL
FINANCIAL REPORTING STANDARDS (CONT.)
(vi) Management has elected to apply the exemption
provided in AASB 1 First-time Adoption of
Australian Equivalents to International Financial
Reporting Standards, which permits entities not
to apply the requirements of AASB 3 Business
Combinations to business combinations made
prior to 1 July 2004. AASB 3 will impact the
corporation for periods commencing from
1 July 2004.
Under AASB 3 Business Combinations, goodwill
is not permitted to be amortised but instead is
subject to annual impairment testing. Currently,
the Consolidated Group amortises goodwill over
its useful life but not exceeding 20 years. Under
the new policy, amortisation would no longer be
charged, but goodwill would be written down to
the extent it is impaired. This is likely to result in
an increase in earnings for 2005 and consequently
increase the net equity position of the corporation
as at 30 June 2005.
The change to goodwill amortisation resulting
from AASB 3 Business Combinations will also
alter the earnings of the corporation’s joint-venture
entities due to the removal of the requirement
to amortise goodwill. This is likely to result
in an increase in equity accounted profit and
consequently increase the net equity position of
the corporation from 1 July 2004.
(vii) Under AASB 140 Investment Property, certain
property that is being held to earn rental income is
reclassified from Land and Buildings to Investment
Property. This has no impact on net equity at
1 July 2004. However, depreciation will no longer
be charged on these properties from 1 July 2004
and will consequently have a favourable impact on
the income statement. In addition, any movement
in the fair value of investment properties will be
taken to the income statement.
(viii) Management has elected to apply the exemption
provided in AASB 1 First-time Adoption of
Australian Equivalents to International Financial
Reporting Standards which permits entities not
to apply the requirements of AASB 132 Financial
Instruments: Presentation and Disclosures and
AASB 139 Financial Instruments: Recognition
and Measurement for the financial year ended
30 June 2005. The standards will be applied from
1 July 2005.
FOR THE YEAR ENDED 30 JUNE 2005
39. CONTINGENT LIABILITIES –
FINANCE LEASE
The corporation has indemnified third parties in respect
of certain United States of America tax liabilities which
could arise in the event that the corporation carries
out acts which are not “Permitted Acts” under the
indemnity agreement. The indemnity applies over the
15-year and 17-year terms of the cross-border finance
leases entered into by the corporation during the years
ended 30 June 2000 and 30 June 2001 respectively. It
is considered remote that the corporation would ever
infringe the provisions of the agreement. However, any
incident of loss that may arise from an infringement
would not have a material impact on the fair statement
of the financial statements.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
| 103 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Community service obligations
| 104 |
COMMUNITY SERVICE OBLIGATIONS
FOR THE YEAR ENDED 30 JUNE 2005
Australia Post’s community service
obligations (CSOs) are set out in
section 27 of the Australian Postal
Corporation Act (the Act), which
requires that:
° the corporation provide a letter
service for both domestic and
international letter traffic
° the service be available at
a single uniform rate within
Australia for standard letters
° the service be reasonably
accessible to all Australians
wherever they reside
° the performance standards
for the service reasonably
meet the social, industrial
and commercial needs of
the community.
Performance standards
Regulations made under section
28C of the Act detail the particular
standards required to meet these
obligations. Performance against
these standards is subject to
independent audit by the Australian
National Audit Office (ANAO).
All of the prescribed standards
were met or exceeded in 2004–05.
The actual result for each standard
is outlined in the table to the right.
The associated ANAO audit report
is reproduced on pages 105–106.
Organisational arrangements
To maintain an appropriate ongoing
focus on CSO compliance, Post
has a national CSO co-ordinator
in its Headquarters, as well as
nominated CSO co-ordinators
at the state level.
CSO costs
There is a financial “cost”
associated with meeting CSOs.
That “cost” arises when the charge
made for any mandated service
does not recover the cost of its
delivery. The “cost” is measured
on a net basis (i.e. after reduction
of related revenue). It is funded by
internal cross-subsidy within the
letter service and from a lower than
otherwise return on the business.
For 2004–05, calculated on the
avoidable cost methodology, CSO
“costs” are estimated to have
been $79.4 million.
PERFORMANCE
STANDARD
LODGEMENT
10,000 street posting boxes 15,425
DELIVERY TIMETABLES
Same State
2004–05
PERFORMANCE
Metro – next business day Maintained
Metro to country – second
business day
Between country areas – second
business day
Interstate
Maintained
Maintained
Metro to metro – second business day Maintained
Between metro and country – third
business day
Between country areas – fourth
business day
ON-TIME DELIVERY
Maintained
Maintained
94% of non-bulk letters 94.9%
ACCESS
4,000 retail outlets (2,500 in rural
and remote areas)
Retail outlets located so that:
– in metropolitan areas at least
90% of residences are within
2.5 kilometres of an outlet
– in non-metropolitan areas at least
85% of residences are within
7.5 kilometres of an outlet
DELIVERY FREQUENCY
98% of delivery points to receive
deliveries five days a week
99.7% of delivery points to receive
deliveries no less than twice a week
COMPLAINTS (#)
To be resolved within 10 days
on average
4,474 (2,574 in rural and
remote areas)
94.1%
86.7%
98.7%
99.9%
Resolved within an average of
5.2 days
Note
# Not part of performance regulations; this is a Customer Service
Charter commitment.

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Performance standards audit report
| 105 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Performance standards audit report
| 106 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
KPMG report on domestic letter service performance
| 107 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
ACNielsen survey certification
| 108 |

RESERVED / NON-RESERVED SERVICES
ESTIMATED RESULTS OF PRODUCT DISSECTION BETWEEN RESERVED
AND NON-RESERVED SERVICES
CONSOLIDATED RESULTS
FOR THE YEAR ENDED 30 JUNE 2005
Reserved Non-reserved Total
$m % $m % $m %
Revenue 1,849.5 42.9 2,457.1 57.1 4,306.6 100.0
Expense 1,726.2 45.5 2,070.7 54.5 3,796.9 100.0
Profit from ordinary activities
before net interest and income tax
123.3 24.2 386.4 75.8 509.7 100.0
Net interest revenue -2.1
Share of net profits of joint ventures 16.9
Profit from ordinary activities
before income tax
Return on revenue (1) 6.7 15.7 11.8
Estimated assets employed (2) 1,180.3 44.7 1,459.6 55.3 2,639.9 100.0
524.5
Investments and non-trading assets 1,122.5
Total assets 3,762.4
Return on assets 10.4 26.5 13.9
Notes
1. Revenue excludes interest and share of net profits of joint ventures.
2. Reflects 2004–05 allocation.
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Reserved / non-reserved services
| 109 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statutory reporting requirements index
| 110 |
STATUTORY REPORTING REQUIREMENTS INDEX
FOR THE YEAR ENDED 30 JUNE 2005
Australia Post has reported in accordance with the requirements of the Commonwealth Authorities and Companies
Act 1997, the Australian Postal Corporation Act 1989, the Freedom of Information Act 1982, the Occupational Health
and Safety (Commonwealth Employment) Act 1991, the Superannuation Benefits (Supervisory Mechanisms) Act 1990, and the
Environment Protection and Biodiversity Conservation Act 1999. This index shows where the relevant information can be found
in the 2004–05 Annual Report.
Section Subject Location Page reference
Commonwealth Authorities and Companies (CAC) Act 1997 – Schedule 1 Reporting Requirements
s.1(a) Report of Operations Report of operations 1–59
Financial statements 64
Statutory report 110–115
s.1(b) Financial Statements Financial statements 60–103
s.1(c) Financial Statements Audit Financial statements 62–63
s.2(3) Directors’ Statement Financial statements 64
Australian Postal Corporation Act 1989 – General Reporting Requirements
s.43(a) Statement of corporate objectives under the corporate plan Statutory report 112
s.43(b)(i) Overall strategies and policies under the corporate plan About our business
Chairman’s report
Statutory report
s.43(b)(ii) Performance indicators and targets under the corporate plan Statutory report 113
s.43(c) Assessment of extent to which objectives under s.43(a) have been achieved Performance against targets
Chairman’s report
Managing director’s report
Financial results
Community service obligations
Statutory report
s.43(d) Strategies and policies relating to Community Service Obligations (CSOs) Letters
Community service obligations
5
6–7
112–113
2
6–7
8–9
10–11
104–108
s.43(e) Directions by the Minister under s.40(1)(CSOs) N/A N/A
s.43(f) Assessment of appropriateness and adequacy of strategies and policies for CSOs Letters
20
s.43(fa) Performance standards relating to CSOs
Community service obligations
Performance against targets
104
2
Letters
20
Community service obligations 104–108
s.43(g)(i)
Statistical summary
Notifications by the Minister under s.28 of the CAC Act (general policies of the Commonwealth) Statutory report
116–121
113
s.43(g)(ii) Directions by the Minister under s.49 of the APC Act (public interest) N/A N/A
s.43(h)(i) Impact of Ministerial notifications under s.28 of the CAC Act and directions under Statutory report 113
s.49 of the APC Act
s.43(h)(ii) Impact of other Government obligations Statutory report 113
s.43(j) Ministerial power under s.33(3) to disapprove postage determinations N/A N/A
s.43(k) Companies and other associations established or sold Chairman’s report
6–7
Managing director’s report 8–9
Parcels & logistics
33–34
s.43(m)(i)&(ii) Shares purchased and disposed of
Financial statements
Managing director’s report
69–70, 77, 86–88
8–9
Financial results
11
s.43(m)(iii) Subsidiaries
Financial statements
Managing director’s report
77, 86–88
8–9
Parcels & logistics
34
s.43(n) Authority to open or examine the contents of postal articles
Financial statements
Statutory report
77, 86–88
115
s.43(o) Disclosure of information Statutory report 115
s.44(a) Financial targets Performance against targets 2
s.44(b) Ministerial direction under s.40(i) to vary the financial targets
Statutory report
N/A
113
N/A
s.44(c) Progress in achieving the financial targets Performance against targets 2
Financial results
10–11
s.44(d) Dividend payable to the Commonwealth
Statutory report
Financial results
112–113
10–11
Financial statements
84
s.44(e) Ministerial direction under s.54(3) as to dividend
Statutory report
N/A
113
N/A
s.44(f) Capital repaid to the Commonwealth N/A N/A
s.44(g)(i) Cost impact of CSOs Community service obligations 104
s.44(g)(ii) Cost impact of Ministerial notifications under s.28 of CAC Act Statutory report 113
s.44(g)(iii) Cost impact of Ministerial directions under s.49 of APC Act N/A N/A
s.44(g)(iv) Cost impact of other Government obligations Statutory report 113
s.44(h)(i)&(ii) Financial information requested by the Minister in relation to the reserved services and
other activities
N/A N/A
Freedom of Information Act 1982 – Reporting requirements
s.8(1)(a)(i)
s.8(1)(a)(ii)
Information on organisation and functions
Consultative arrangements
Statutory report
Statutory report
114
114
s.8(1)(a)(iii) Categories of documents Statutory report 114
s.8(1)(a)(iv)&(v) Access to documents and initial inquiries Statutory report 114
Occupational Health and Safety (Commonwealth Employment) Act 1991 – Reporting requirements
s.74(1)(c) Occupational health and safety policies including agreement with employees,
Statutory report 113
establishment of committees and selection of health and safety representatives
s.74(1)(d) Measures taken to ensure health, safety and welfare of employees and contractors People
42
s.74(1)(e) Statistics requiring the giving of notice under s.68
Statutory report
Statutory report
113–114
114
s.74(1)(f)&(g) Details of investigations and other matters as prescribed Statutory report 114
Superannuation Benefits (Supervisory Mechanisms) Act 1990
s.6(1)(b) Report on operation of superannuation arrangement
Environment Protection and Biodiversity Conservation Act 1999
Statutory report 113
s.516A(3)(6) Report on the implementation of the Ecologically Sustainable Development program Corporate sustainability 40–51
within Post, including social, economic, cultural and environmental performance Corporate governance 52–55
112–113
20
104

STATUTORY REPORTING REQUIREMENTS INDEX
FOR THE YEAR ENDED 30 JUNE 2005
Commonwealth Authorities and Companies (Report of Operations) Orders 2005rations) Orders 2002
Division 2 – General information about operations and activities
Section Subject Location Page reference
Enabling legislation and responsible minister
s.8(a) Enabling legislation Corporate governance
Statutory report
s.8(b) Ministers responsible Corporate governance 52
Outline of organisational structure
s.9 Organisational structure Corporate structure
Board of directors
52
112
56–57
58–59
Review of operations and future prospects
s.10(1)(a)(i) Performance measured against statutory objectives Community service obligations 104
s.10(1)(a)(ii) Corporate plan Statutory report 112–113
s.10(1)(a)(iii) Principal outputs and contributions Chairman’s report
Managing director’s report
Financial results
Our year in summary
s.10(1)(b) Current and future events and trends, including risks and opportunities Chairman’s report
Managing director’s report
Financial results
Our year in summary
s.10(1)(c) Significant events under s.15 of CAC Act Chairman’s report
Managing Director’s report
Financial results
s.10(1)(d)(i) Operational and financial results – principal outputs Chairman’s report
Managing director’s report
Financial results
Our year in summary
s.10(1)(d)(ii) Major investing and financial activities Chairman’s report
Managing director’s report
Financial results
s.10(1)(d)(iii) Financial and non-financial performance indicators Financial results
Community service obligations
Statutory report
6–7
8–9
10–11
12–13
6–7
8–9
10–11
12–13
6–7
8–9
11
6–7
8–9
10–11
12–13
6–7
8–9
10–11
10–11
104
112–113
s.10(1)(e) Significant changes in affairs or principal activities during the year N/A N/A
s.10(1)(f) Significant developments since end of financial year N/A N/A
Judicial reviews by outside bodies
s.11(a) Judicial tribunal decisions that have had a significant impact N/A N/A
s.11(b) Reports by the Auditor-General, a Parliamentary Committee or Commonwealth Financial statements audit 62–63
Ombudsman
Performance standards audit 105–106
Effects of ministerial directions
s.12(1)(a)(i) Any directions by responsible ministers during the financial year N/A N/A
s.12(1)(a)(ii) Since the end of the financial year N/A N/A
s.12(1)(a)(iii) Continuing from previous financial years N/A N/A
s.12(1)(b)(i) Government policies under s.28 of the CAC Act during the financial year N/A N/A
s.12(1)(b)(ii) Since the end of the financial year N/A N/A
s.12(1)(b)(iii) Continuing from previous financial years Statutory report 113
Disclosure requirement of GBEs
s.13(1)(a)(i) Significant changes in financial structure N/A N/A
s.13(1)(a)(ii) Events that may affect future operating results N/A N/A
s.13(1)(b) Dividends paid or recommended Financial results
10–11
Financial statements 84
Statutory report
113
s.13(1)(c) Community service obligations Community service obligations 104
Statutory report
112
Division 3 – Specific information
Section
Directors
Subject Location Page reference
s.14(1)(a) Directors’ details Board of directors 58–59
s.14(1)(b) Directors’ meetings Corporate governance 55
Statement on Governance
s.15(1) Main governance practices Corporate governance 52–53
s.15(2) Board committee details (including Audit Committee) Corporate governance 52–53
Indemnities and insurance premiums for officers
s.16(1)(a) Indemnity for officers Statutory report 112
s.16(1)(b) Premium paid Statutory report 112
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statutory reporting requirements index
| 111 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statutory reporting requirements
| 112 |
STATUTORY REPORTING REQUIREMENTS
FOR THE YEAR ENDED 30 JUNE 2005
INTRODUCTION
Australia Post is subject to various statutory reporting
requirements under the Australian Postal Corporation Act
1989, the Commonwealth Authorities and Companies
Act 1997, the Freedom of Information Act 1982, the
Occupational Health and Safety (Commonwealth
Employment) Act 1991, the Superannuation Benefits
(Supervisory Mechanisms) Act 1990, and the Environment
Protection and Biodiversity Act 1999.
The index on pages 102–103 shows where the relevant
information can be found in this annual report. A number
of matters are dealt with in the main body of the report.
Others are covered below.
LEGISLATION
The powers and functions of Australia Post are set out
in Sections 14–19 of the Australian Postal Corporation
Act 1989 (the Act).
Post’s principal function is to supply postal services
within Australia and between Australia and other
countries. Australia Post may also carry on any business
or activity, either domestically or internationally, that
relates or is incidental to the supply of postal services.
BOARD OF DIRECTORS
The board may consist of up to nine directors.
Membership during the 2004–05 financial year was:
Linda B Nicholls – Chairman
David A Mortimer – Deputy Chairman
Graeme T John – Managing Director
Mark A Birrell
Margaret M Gibson (appointed 2 September 2004)
Peter A McLaughlin
Sandra V McPhee
Edward D Tweddell (deceased 4 August 2005)
Ian K Warner (re-appointed 2 September 2004)
Australia Post has in place a Directors’ and Officers’
Liability insurance policy. The policy, which expires
in February 2006, provides cover in respect of any
person who is or was a director or officer of Australia
Post, when acting in these capacities. Australia Post
also maintains a separate insurance policy which
provides cover to all former directors or officers of
the corporation. This policy, which expires in February
2015, provides cover in respect of any matters arising
from the time such persons were a director or officer of
Australia Post. Confidentiality requirements within the
insurance contracts prohibit any additional disclosures.
Directors of Australia Post are also indemnified by the
corporation to the extent permitted by law against any
liability incurred in their capacity as a director.
CORPORATE PLAN
Each year Australia Post prepares a rolling three-year
corporate plan. The 2004–05 plan and associated
Statement of Corporate Intent were submitted to the
shareholder ministers in June 2004.
Objectives
The main objectives of the plan, over the triennium,
were to:
° meet all of Post’s community service obligations
and become the first choice for customers for all
products and services offered
° maintain low cost of production and high staff
commitment
° expand business to provide substitute profit
growth for otherwise mature businesses
° grow current profitability levels and
shareholder value.
Strategies
Australia Post’s overarching strategy continues to
be to defend and extend the core business and to
establish leadership positions in substitute markets
and in activities with growth potential, where it is
possible to fully capitalise on our existing strengths.
To support this, the corporation has pursued five
strategies that maintain and grow revenue from our
existing core business operations in Letters, Retail
and agency services, and Parcels and logistics. The
strategies and their main associated programs were:
Increase revenue in the consumer segment by offering
additional, related products and services by:
° matching the product mix to outlet demographics,
as well as differentiating product ranges by customer
segments, such as small-to-medium enterprises
° increasing sales through licensed post offices
through enhanced training, support and incentive
programs.
Partner with business customers to help them
deliver goods to, and engage with, their customers
by upgrading our services through:
° targeting businesses with parcels and logistics
requirements that are suited to our network and
those of our partners
° broadening the range of agency services.
Maintain revenue in the letters business through
aggressive marketing of direct mail and by making
letters easier to use through:
° stimulating the growth of mail marketing by
positioning it as an effective advertising medium
° defending transactional mail from competitive
threats, including substitution, by simplifying the
production and lodgement of bulk mail
° extending the use of desktop hybrid mail to make
mail production as easy as e-mail.
Continue to reduce costs across the business through
process improvement and better mail processing
technology utilisation by:

° realising the full benefits of technology investments
for letters and parcels by reducing manual
operations in mail centres, restructuring the parcels
processing network and improving the productivity
of the vehicle fleet
° reducing the “real” costs in the retail network by
creating a portfolio of retail outlet formats to suit
the requirements of different customer segments.
Improve parcels and logistics services to provide
a reliable Australian carrier for businesses in the
Asia–Pacific region by:
° ensuring that our international express capability is
competitive with that of global operators
° establishing a logistics hub in China with China Post.
Targets
Key financial and non-financial performance measures
set out in the plan were:
° profit before tax averaging $524 million per year
° dividends averaging $214 million over the three
years of the plan.
Specific targets for 2004–05 and performance against
these targets were:
Performance Indicator Target Performance
On-time letter delivery 94% 94.9%
Labour productivity growth 3.7% 2.6%
Profit before tax $495m $524.5m
Return on average
operating assets
16.2% 17.1%
Dividend for 2004–05 $206.2m $286.2m
GOVERNMENT POLICIES
In February 2004, the Minister for Communications,
Information Technology and the Arts provided
formal notification under s28 of the Commonwealth
Authorities and Companies Act 1997 that the
Government’s National Code for the Construction
Industry and associated implementation guidelines
were to apply to all construction-related activity
undertaken by and on behalf of Australia Post.
The notification has had no major impact on the
corporation, as Post had, since their introduction in
1997, made compliance with the code and guidelines
a condition of all of its construction-related tenders.
Section 49 of the Australian Postal Corporation Act
1989 empowers the Minister to give the board written
directions in relation to the performance of Australia
Post’s functions as appear to be necessary in the public
interest. No notification or direction has been issued
under this provision.
OTHER GOVERNMENT OBLIGATIONS
Administrative law
The cost of meeting Commonwealth administrative
requirements in 2004–05 is estimated at around
$1 million.
Pensioner mail redirection
The cost of providing pensioner mail redirection
concessions for the year was approximately
$5.7 million.
STATUTORY REPORTING REQUIREMENTS
Medical and Educational Remote Area
Parcel service
The Medical and Educational Remote Area Parcel
service provides reduced postage rates for parcels,
containing health and education materials, sent to and
from people living in remote communities. In 2004–05,
revenue foregone is estimated at $28,200.
Superannuation
FOR THE YEAR ENDED 30 JUNE 2005
During 2004–05 Australia Post complied with all
relevant guidelines and made no significant changes
to superannuation arrangements for employees.
OCCUPATIONAL HEALTH AND SAFETY
(OH&S) REPORT
The following information is presented in accordance
with the requirements of s74 of the Occupational
Health and Safety (Commonwealth Employment) Act
1991 (OH&S Act 1991).
A number of measures were taken during the year to
assist in providing for the health, safety and welfare at
work of employees and contractors of the corporation.
These included:
° continuing to implement our OH&S Policy and
OH&S Agreement
° auditing legislative and corporation policy
compliance through the Australia Post
Occupational Health and Safety Management
System Quality Assurance Program
° maintaining OH&S committees throughout the
corporation
° providing OH&S-related training for Health and
Safety Representatives, managers, supervisors
and staff throughout Australia Post to develop a
greater understanding of corporate and statutory
requirements
° directing OH&S improvements through OH&S
plans at national, State and workplace facility
levels. These plans provide for OH&S management
systems and supervisory accountability; auditing
the effectiveness of the OH&S management
system; induction and skills training; compliance
with corporate and statutory OH&S requirements;
workplace safety audits for hazard identification
and control; accident prevention initiatives
targeted at priority accident types; and employee
involvement in OH&S
° working to reduce the number and severity of
major accident types, including motorcycle,
manual handling and forklift incidents, through
staff training, and identifying and controlling
accident risks
° implementing new national procedures and
training for machine “lock out, tag out”, safe
use of load shifting equipment including fork lift
trucks and unit loading devices, safe use and
management of “SARS” risks
° ensuring that new and modified equipment
and work practices were compliant with safety
requirements before activation
° advising contractors on safe work practices.
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statutory reporting requirements
| 113 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statutory reporting requirements
| 114 |
STATUTORY REPORTING REQUIREMENTS
FOR THE YEAR ENDED 30 JUNE 2005
During the year:
° 922 incidents were notified/reported to Comcare
in accordance with s68 of the OH&S Act 1991.
° 37 Provisional Improvement Notices were given.
° 2 Improvement Notices (s47) were given.
° 17 investigations were conducted relating to:
- plant, machinery and building safety (7)
- workplace arrangements (3)
- motorcycle safety (2)
- harassment (2)
- manual handling (1)
- OH&S compliance (1)
- non-work related fatality (1).
° One s44 action was taken.
° One s45 direction was issued.
° One s46 notice was issued.
° 308 Health and Safety Representatives (HSRs)
and Deputy HSRs were trained.
FREEDOM OF INFORMATION REPORT
In the year to 30 June 2005, Post received 64
applications under the Freedom of Information Act
1982 (Cth).
These were handled as follows:
Granted in full 33
Granted in part 10
Access refused 12
Withdrawn 6
On hand at 30 June 2005 3
Total 64
There were two applications for internal review during the
year, each of which resulted in the decision of the Freedom
of Information Officer being substantially confirmed.
The two applications that were lodged with the
Administrative Appeals Tribunal in the previous financial
year were determined during the period. Post was
substantially successful in both. One application that
was lodged with the Administrative Appeals Tribunal in
2004–05 financial year is yet to be listed for hearing.
The estimated cost of handling Freedom of Information
requests and related responsibilities in 2004–05 was
$62,494. Application fees and charges of $913 were
collected.
Freedom of Information Act, Section 8
The following information is presented in accordance
with s8 of the Freedom of Information Act 1982.
Organisation and functions
Australia Post has a Melbourne-based Headquarters,
five state-based profit centres, and four joint ventures.
Headquarters is responsible for strategic planning,
policy and support activities. State-based profit centres
direct day-to-day business activities within the states.
Consultative arrangements
Australia Post consults directly with major mail
users, customers and various bodies to respond to
customers needs.
A joint Mailing Industry Advisory Committee operates
with the Major Mail Users of Australia for the purpose
of enhancing relationships between Australia Post and
its major customers.
The Postal Services Consultative Council provides
a further external forum for discussing Australia
Post’s services and performance. Post also consults
extensively with private mail users through local
managers and customer contact services.
Market research is undertaken regularly to monitor
how well Australia Post is satisfying customer needs
and how the public regards the postal system.
Australia Post’s letter delivery performance is
independently audited by KPMG. Formal reports are
published on a quarterly basis.
Access to documents
Access to documents under the Freedom of
Information Act can be obtained by forwarding a
written request together with the prescribed fee to:
National Freedom of Information Officer
Legal Services Group
Australia Post Headquarters
GPO Box 1777
MELBOURNE VIC 3001
Alternatively, access to documents can be obtained
by writing to the Freedom of Information Officer in the
relevant state administrations. The addresses of Post’s
state administrations are provided on the back cover.
Access to personal information
Under the Privacy Act 1988 (Cth) individuals have,
subject to certain exceptions permitted by law, a right
to request access to their personal information that is
held by Commonwealth agencies and private-sector
organisations.
Individuals may apply for access to their personal
information held by Australia Post by writing to:
Chief Privacy Officer
Legal Services Group
Australia Post Headquarters
GPO Box 1777
MELBOURNE VIC 3001
FRAUD CONTROL
To deter and detect any instances of fraud, Australia
Post applies measures consistent with sound
commercial practices. This is further supported through
the maintenance of a National Fraud Control Policy and
Code of Ethics.
The Corporate Audit Services Group applies a risk-based
methodology to review business operations and related
systems, including policies and procedures, which
make up the control environment. This is undertaken
on a programmed basis to ensure that the corporation’s
assets are safeguarded and business risks minimised.
The Corporate Security Group is a specialised unit
charged with the responsibility of ensuring the integrity
of the mail and the safety of Post’s personnel and other
assets. The group works closely with law enforcement
agencies both within Australia and internationally.

Annual reviews of conventional, computer and
computer-related crime risk exposures are undertaken
by the Risk Management Unit.
Corporate security, audit and risk groups formally
liaise to enhance fraud awareness and to ensure that a
co-ordinated approach to fraud management is adopted.
The Systems Security section has a specialist role of
ensuring the security of Post’s information technology
systems.
EXAMINATION OF MAIL
The corporation is authorised under the Act to open
mail, as required by the Australian Customs Service,
when articles are suspected to contain prohibited
substances or to determine that appropriate duties/
taxes are met. For this purpose authorised examiners,
in accordance with section 90FB of the Act, have been
appointed at designated locations where mail can be
opened.
Australian Customs Service personnel have also been
authorised under section 90T to remove and open
articles of a particular weight that they reasonably believe
may contain certain drugs or other chemical compounds.
They have also been authorised under section 90FB(3) for
the purpose of examining mail without opening. (i.e. by
X-ray or with drug detection dogs).
STATUTORY REPORTING REQUIREMENTS
FOR THE YEAR ENDED 30 JUNE 2005
Authorised Australia Post staff may open undeliverable
articles at approved locations for the purpose of
identifying intended or return addresses. They may also
open mail to repair an article or its contents so that the
article can be made safe for carriage by post.
DISCLOSURE OF INFORMATION
The corporation is authorised to disclose information
to agencies with the legislative power to obtain
such information. This includes instances relating to
enforcement of the criminal law, the protection of the
public revenue, the reduction of threats to life and
notification of next of kin.
As required under section 43(o) of the Act, Tables 1 and
2 detail the number of times that such information was
disclosed during the year and the authorities or bodies
to which it was disclosed.
TABLE 1. DISCLOSURE OF INFORMATION/DOCUMENTS (SECTION 90J “AUTHORITY”)
(Applies to all information or documents)
Authority for
disclosure
Disclosure under
warrants [s. 90J(3)]
Disclosure under a law
of the Commonwealth
[s. 90J(5)]
Disclosures under
certain laws establishing
commissions
[s. 90J(6)]
Number of
disclosures Disclosures made to
* There were no disclosures made under s. 90J (7) (8) or (9).
34 Australian Security Intelligence Organisation, Aust. Taxation Office, Aust. Federal
Police, State Police (TAS, WA)
24,846 Australian Crime Commission, Aust. Customs Service, Aust. Taxation Office,
Centrelink, Child Support Agency, Dept. of Immigration Multicultural & Indigenous
Affairs, Dept. of Veteran’s Affairs, Health Insurance Commission, Insolvency &
Trustees Services Aust.
52 Crimes Commission (NSW), Independent Commission against Corruption (NSW)
TABLE 2. DISCLOSURE OF INFORMATION/DOCUMENTS (SECTION 90K “AUTHORITY”)
(Applies to information or documents not specially protected)
Authority for
disclosure
Disclosure to authorised
ASIO officer [s. 90K(4)]
Disclosure for the
enforcement of laws
or protection of public
revenue [s. 90K(5)]
Number of
disclosures Disclosures made to
Notes
1. There were no disclosures made under s. 90K (2) or (3).
2. Commonwealth agencies, unless otherwise indicated.
95 Australian Security Intelligence Organisation
5,374 Aust. Communications Authority, Aust. Quarantine Inspection Service, Aust.
Securities & Investments Commission, Consumer & Business Affairs (VIC),
Consumer & Business Affairs Dept. of Justice (NT), Corruption & Crime Commission
(WA), Crime & Misconduct Commission (QLD), Crown Solicitor’s Office (SA),
Dept. of Consumer & Employment Protection (WA), Dept. of Fair Trading (NSW),
Dept. of Justice (QLD), Dept. of Natural Resources & Environment (Fisheries VIC),
Directorate of Security & Policing – Air Force, Office of Consumer & Business
Affairs (SA), Office of Consumer Affairs (TAS), Office of Fair Trading (QLD), Office
of Gaming Regulation (QLD), Office of State Revenue (NSW) & (QLD), Australian
Federal Police, State Police (NSW) (NT) (QLD) (SA) (TAS) (VIC) (WA), Residential
Tenancies Authority (QLD), Revenue SA (SA), Sheriff’s Office (VIC), State Revenue
Office (VIC), WorkCover Authority (VIC), WorkCover Corp (SA), WorkCover
Queensland (QLD), WorkCover New South Wales (NSW).
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Statutory reporting requirements
| 115 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Australia Post – the statistics
| 116 |
AUSTRALIA POST – THE STATISTICS
FOR THE YEAR ENDED 30 JUNE 2005
01. FIVE-YEAR STATISTICAL SUMMARY
Consolidated
2004–05 2003–04 2002–03 2001–02 2000–01
Revenue ($m) 4,323.5 4,161.1 3,971.9 3,806.6 3,766.4
Expenditure ($m) 3,799.0 3,640.0 3,509.9 3,399.4 3,364.3
Profit from ordinary activities
before income tax ($m)
524.5 521.1 462.0 407.2 402.1
Total assets ($m) 3,762.4 3,471.8 3,364.7 3,228.9 3,198.5
Return on average assets (%) 14.6 15.4 14.0 12.9 13.4
Cost of community service
obligations ($m)
79.4 79.1 90.5 87.9 86.3
Total taxes and government charges ($m) 527.4 526.2 484.7 454.8 458.9
Dividends ($m) 286.2 220.9 304.3 291.8 274.5
Corporation
Total mail articles handled (m) 5,363.1 5,307.5 5,261.7 5,281.2 5,258.4
On-time letter delivery performance (%) 94.9 95.5 96.5 96.0 94.1
Full-time employees 25,851 26,019 26,394 26,950 27,079
Labour productivity improvement (%) 2.6 3.4 3.8 2.2 4.0
Number of corporate outlets 863 862 872 882 897
Number of licensed post offices 2,979 2,982 2,981 2,979 2,975
Number of postpoints 740 755 790 817 915
Number of delivery points 9,868,275 9,681,976 9,443,227 9,197,298 9,012,347
02. BASIC POSTAGE RATE* (BPR) AND THE CONSUMER PRICE INDEX (CPI)
As at 30 June
BPR
¢
CPI all groups 8
capitals base
1989–90=100
Change in BPR
%
Year on year
Change in CPI
%
Change in
real postage
%
1996 45 119.8 0 0.0 0.0
1997 45 120.2 0 0.3 –0.3
1998 45 121.0 0 0.7 –0.7
1999 45 122.3 0 1.1 –1.1
2000 45 126.2 0 3.2 –3.2
2001 45 133.8 0 6.0 –6.0
2002 45 137.6 0 2.8 –2.8
2003 50 141.3 11 2.7 8.2
2004 50 144.8 0 2.5 –2.5
2005 50 148.4 0 2.5 –2.5
Note
* Postage rates applicable to standard letters carried within Australia by ordinary post.

03. AUSTRALIA POST OUTLETS AT 30 JUNE 2005
Corporate offices
AUSTRALIA POST – THE STATISTICS
NSW/
ACT
VIC/
TAS QLD WA SA/NT
FOR THE YEAR ENDED 30 JUNE 2005
Aust
2005
– at 1 July 2004 283 232 177 91 79 862 872
Changes during 2004–05:
– Opened 1 1 2 0 1 5 4
– Changed from LPO 0 0 0 0 0 0 0
– Changed to LPO 0 0 2 0 0 2 6
– Closed 0 0 2 0 0 2 8
Total at 30 June 2005 284 233 175 91 80 863 862
Licensed post offices/franchises
– at 1 July 2004 920 985 459 296 322 2,982 2,981
Changes during 2004–05:
– Opened 0 2 1 0 0 3 2
– Changed from corporate office 0 0 2 0 0 2 6
– Changed from community postal agency 0 0 0 0 0 0 2
– Changed to corporate office 0 0 0 0 0 0 0
– Changed to community postal agency 1 1 0 0 0 2 2
– Closed 3 2 0 0 1 6 7
Total at 30 June 2005 916 985 * 462 296 320 * 2,979 2,982
Grand total at 30 June 2005 1,200 1,218 637 387 400 3,842 3,844
Community postal agencies at
30 June 2005
Aust
2004
100 67 189 92 184 632 633
Total outlets at 30 June 2005 1,300 1,285 826 479 584 4,474 4,477
Note
* Change of control for Nelson LPO. Previously counted under SA/NT now counted under VIC/TAS.
04. AUSTRALIA POST OUTLETS BY STATE (4) AND GEOGRAPHIC CLASSIFICATION
Outlet type
Geographic (1)
classification NSW ACT VIC QLD SA WA TAS NT
Oth
Terr Aust
Corporate Metro 196 17 148 102 48 65 12 4 0 592
offices
Rural 71 0 55 62 24 16 17 0 0 245
Remote 1 0 1 10 1 10 0 3 0 26
268 17 204 174 73 91 29 7 0 863
LPO (2) Metro 414 37 376 168 127 121 26 5 0 1,274
Rural 423 1 441 202 144 94 114 3 0 1,422
Remote 46 0 17 92 27 79 5 14 3 283
883 38 834 462 298 294 145 22 3 2,979
CPA (3) Metro 10 0 3 4 7 3 6 1 0 34
Rural 83 0 30 105 100 40 20 5 0 383
Remote 8 0 1 80 25 53 2 42 4 215
101 0 34 189 132 96 28 48 4 632
Totals Metro 620 54 527 274 182 189 44 10 0 1,900
Rural 577 1 526 369 268 150 151 8 0 2,050
Remote 55 0 19 182 53 142 7 59 7 524
1,252 55 1,072 825 503 481 202 77 7 4,474
Notes
1. Geographic classifications use DPIE/HSH November 1994 metropolitan, rural remote areas classifications by 1991 Census SLA.
2. LPO = Licensed post office. This figure also includes one post office agency and four franchised PostShops.
3. CPA = Community postal agency.
4. This table uses geographic states, not Australia Post administrative states.
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Australia Post – the statistics
| 117 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Australia Post – the statistics
| 118 |
AUSTRALIA POST – THE STATISTICS
FOR THE YEAR ENDED 30 JUNE 2005
05. MAIL DELIVERY NETWORK AT 30 JUNE 2005
Private households
receiving mail via:
NSW/ACT VIC/TAS QLD WA SA/NT Aust 2005 Aust 2004
Street delivery 2,575,327 2,022,894 1,341,602 743,316 618,077 7,301,216 7,180,488
Private boxes/locked bags 243,189 189,177 191,720 96,279 117,533 837,898 813,087
Private and
community bags
6,312 1,279 2,896 4,500 10,530 25,517 24,981
Roadside delivery 179,198 142,216 122,295 13,957 10,935 468,601 458,615
Counter delivery 39,581 50,610 37,787 25,764 41,716 195,458 194,397
Total 3,043,607 2,406,176 1,696,300 883,816 798,791 8,828,690 8,671,568
Businesses receiving
mail via:
Street delivery 180,352 158,369 108,781 47,658 40,929 536,089 518,858
Private boxes/locked bags 170,494 109,630 104,778 47,048 36,719 468,669 456,576
Private and
community bags
456 465 526 496 931 2,874 2,874
Roadside delivery 5,539 4,595 3,993 350 626 15,103 15,551
Counter delivery 3,331 6,179 2,659 2,127 2,554 16,850 16,549
Total 360,172 279,238 220,737 97,679 81,759 1,039,585 1,010,408
Total delivery points 3,403,779 2,685,414 1,917,037 981,495 880,550 9,868,275 9,681,976
06. LETTER SENDERS’ ACCESS TO POSTAL NETWORK
Access to stamps and postage assessment
(Number of facilities)
Metro areas Rural areas Remote areas Total
Total retail outlets 1,900 2,050 524 4,474
Other outlets (1) 2,203 2,710 314 5,227
Total outlets (2) 4,103 4,760 838 9,701
Access to posting facilities
(Number of facilities)
Total retail outlets 1,900 2,050 524 4,474
Community mail agents 7 36 81 124
Street posting boxes 10,984 3,957 484 15,425
Roadmail contractors (3) 734 2,390 482 3,606
Posting facilities (4) 13,625 8,433 1,571 23,629
Distance from postal outlets:
Average household distance from
outlets (km)
Dispersion:
1.1 3.2 13.2 2.0
% of households within 2.5 km of a retail outlet 94.1 68.9 57.3 86.5
% of households within 7.5 km of a retail outlet 99.7 88.3 72.4 95.9
Notes
1. Includes postpoints, licensed stamp vendors, off-site vending machines, etc (self assessment only).
2. Does not include roadmail contractors, all of whom, on request, would arrange supply of stamps.
3. Roadmail contractors, on request, accept letters for posting.
4. In addition, postal delivery officers, on request, accept letters for posting.

AUSTRALIA POST – THE STATISTICS
FOR THE YEAR ENDED 30 JUNE 2005
07. LETTER RECIPIENTS’ ACCESS TO POSTAL NETWORK (000 DELIVERY POINTS)
Households
Delivery to residence via:
Metro areas Rural areas Remote areas Total
Street delivery 5,740.4 1,472.4 88.4 7,301.2
Roadside delivery 127.2 326.7 14.7 468.6
Total to residence 5,867.6 1,799.1 103.1 7,769.8
Delivery to postal premises via:
Post office boxes and bags 390.1 374.4 76.5 841.0
Counter delivery 28.6 116.2 50.7 195.5
Total at postal premises 418.7 490.6 127.2 1,036.5
Delivery to intermediate point via:
Community bags 1.2 12.2 9.0 22.4
Total households 6,287.5 2,301.9 239.3 8,828.7
Business
Delivery via:
Street delivery 423.3 107.9 4.9 536.1
Roadside delivery 7.0 7.8 0.3 15.1
Post office boxes and bags 320.1 129.0 21.5 470.6
Counter delivery 3.6 11.2 2.1 16.9
Delivery to intermediate point via:
Community bags 0.1 0.6 0.2 0.9
Total business 754.1 256.5 29.0 1,039.6
Total delivery points served 7,041.6 2,558.4 268.3 9,868.3
08. FREQUENCY OF SERVICE TO DELIVERY POINTS (% OF TOTAL DELIVERY POINTS
AS AT 30 JUNE 2005)
Frequency per week Metro areas Rural areas Remote areas Total
One per week 0 0 0.0 0.3 0.0
Two to four 0.1 4.1 5.4 1.3
Five or more 99.9 95.9 94.3 98.7
Total 100.0 100.0 100.0 100.0
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Australia Post – the statistics
| 119 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Australia Post – the statistics
| 120 |
AUSTRALIA POST – THE STATISTICS
FOR THE YEAR ENDED 30 JUNE 2005
09. OVERALL LETTER SERVICE PERFORMANCE IN 2004–05
Based on letters delivered
in the following:
Per cent on time
Full year
2004–05
Qtr ended
30/6/05
Qtr ended
31/3/05
Qtr ended
31/12/04
Qtr ended
30/9/04
NSW 95.0 94.7 95.7 94.3 95.3
VIC 94.8 94.1 95.4 94.8 94.9
QLD 95.1 94.3 95.6 94.9 95.7
SA 94.7 94.9 95.9 93.0 94.8
WA 94.7 93.6 95.7 94.9 94.7
TAS 97.1 96.9 97.6 96.9 97.1
NT 95.2 94.8 95.5 94.9 95.5
ACT 95.1 95.5 95.4 96.0 93.4
National averages 94.9 94.4 95.7 94.6 95.2
Per cent + one day
NSW 98.2 97.7 98.6 98.3 98.4
VIC 98.4 98.0 98.8 98.3 98.6
QLD 98.4 97.7 98.6 98.4 98.7
SA 98.4 98.2 98.8 98.1 98.3
WA 98.0 97.6 98.2 98.0 98.0
TAS 99.0 98.8 99.4 98.9 99.0
NT 98.7 98.5 98.8 98.8 99.0
ACT 98.4 98.6 98.1 98.7 98.3
National averages 98.3 97.9 98.6 98.3 98.5
10. SUMMARY OF AUSTRALIA POST PROPERTY PORTFOLIO AT 30 JUNE 2005
Property type – owned
VIC/TAS NSW QLD SA WA Grand total
Commercial 2 2 1 – – 5
Industrial 51 47 41 15 23 177
Residential 1 1 7 4 13
Retail 87 126 42 36 25 316
GPO 1 1 1 2 1 6
Property type – leased
142 177 92 53 53 517
Commercial 17 12 4 1 – 34
Industrial 66 84 35 9 7 201
Residential 4 1 2 3 7 17
Retail 145 149 113 37 59 503
GPO – 1 – – – 1
Property type – all
232 247 154 50 73 756
Commercial 19 14 5 1 0 39
Industrial 117 131 76 24 30 378
Residential 5 2 9 3 11 30
Retail 232 275 155 73 84 819
GPO 1 2 1 2 1 7
374 424 246 103 126 1,273
Notes
a. Commercial includes national headquarters and state office/regional office administration.
b. GPOs are those general post offices located in central city business districts.
c. Melbourne GPO no longer has a Post presence, reclassified as commercial use.
d. Industrial includes mail centres, parcel and transport centres, warehousing and some stand alone or co-located business centres.
e. Retail includes retail PostShops and traditional post offices.

AUSTRALIA POST – THE STATISTICS
FOR THE YEAR ENDED 30 JUNE 2005
11. TOTAL ARTICLES THROUGH AUSTRALIA POST’S NETWORK (MILLIONS) (1)
2004–05 2003–04 (2) 2002–03 2001–02 2000–01
Posted in Australia for delivery in Australia 5,102.1 5,016.1 4,950.4 4,961.9 4,928.6
Posted in Australia for delivery overseas 141.8 169.1 164.8 172.8 179.6
Total posted 5,243.9 5,185.1 5,115.2 5,134.7 5,108.2
Posted overseas for delivery in Australia 119.2 122.3 146.5 146.5 150.2
Total articles through network 5,363.1 5,307.5 5,261.7 5,281.2 5,258.4
Notes
1. Mail volume statistics exclude articles that do not generate revenue, e.g. official mail, redirected mail and international
mail in transit (e.g. Singapore to New Zealand via Australia).
2. A revision in the methodology was applied in 2003–04. This resulted in a reduction in mail from overseas.
12. PERSONS ENGAGED IN PROVIDING POSTAL SERVICES AT 30 JUNE 2005
Australia
Post
employment HQ
Full-time
NSW/ACT
Mail and Networks Division Commercial Division
VIC/TAS
QLD
WA
SA/NT
Head office
Total
NSW/ACT
VIC/TAS
QLD
WA
SA/NT
Head office
Total
Other
operating
divisions
Permanent 456 7,476 4,900 2,949 1,481 1,255 676 18,737 1,696 1,163 937 516 365 159 4,836 1,432 25,461 25,568
Fixed term 3 119 14 65 21 10 14 243 44 34 31 12 5 2 128 16 390 451
Total full-time 459 7,595 4,914 3,014 1,502 1,265 690 18,980 1,740 1,197 968 528 370 161 4,964 1,448 25,851 26,019
Part-time
Permanent 21 1,428 1,542 467 379 262 23 4,101 1,293 1,003 705 360 263 3 3,627 57 7,806 7,638
Fixed term 1 110 189 92 70 90 29 580 146 114 177 54 59 0 550 16 1,147 1,392
Total part-time 22 1,538 1,731 559 449 352 52 4,681 1,439 1,117 882 414 322 3 4,177 73 8,953 9,030
Others
Casuals 0 34 5 11 1 2 1 54 71 31 47 10 6 0 165 1 220 293
Agency (1) 30 125 132 0 87 113 30 487 61 141 15 54 4 11 286 147 950 811
LPOs (2) (3) 0 0 0 0 0 0 0 0 922 979 462 296 320 0 2,979 0 2,979 2,982
Mail contracts (3) 0 1,549 1,436 1,567 501 368 0 5,421 0 0 0 0 0 0 0 0 5,421 5,480
Total others 30 1,708 1,573 1,578 589 483 31 5,962 1,054 1,151 524 360 330 11 3,430 148 9,570 9,566
Notes
1. Persons working in award-level positions under contract arrangements with preferred employment providers.
2. The LPO figure includes one Post Office Agency and four franchised PostShops.
3. Denotes the number of LPOs/Mail contracts and does not reflect the number of persons who may be involved in
providing postal services
Total
June 05
Total
June 04
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Australia Post – the statistics
| 121 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Index
| 122 |
INDEX
FOR THE YEAR ENDED 30 JUNE 2005
Graphs, tables and charts
(not including Financial and Statutory Reports)
Pages
Allocation of community investment, 2004–05 47
Australia Post retail facilities 25
Business customer satisfaction with Australia Post 44
Changes in workforce composition
over the past five years 43
Contribution to economic development 51
Decline in workplace injuries at Post 42
Directors’ attendance at meetings, 2004–05 55
Dividends payable 10
Five-year trends (financial) 10
Growth in Australia’s mail delivery network 31
Key business results 12
Mail volumes 10
Ongoing labour productivity improvements 10
Operating profit before tax 10
Organisational structure 56
The price of a basic postage stamp 20
Profit from reserved and non-reserved services 51
Reduction in greenhouse gas emissions since 1997–98 48
Residential customer satisfaction with Australia Post 44
Return on average operating assets 10
Revenue 10
Note: IBC = inside back cover
A
accounting policies 11, 69, 97, 101–103
acquisitions 11, 12, 32, 34, 100
activities
operating 67
investing 67
financing 67
advertising industry spending 22
agency services 5, 7, 12–13, 24–29
amortisation: see depreciation and amortisation
arts, support for 46, 47
Asia–Pacific region 7, 30, 32–33
asset protection 50
assets and liabilities 66, 69, 74, 76, 77, 78, 87–88, 116
audit
environmental 48
external 52, 54, 62–63, 80, 105–106
internal 52, 54
audit committee 52, 54, 55
auditor report
on financial statements/directors’ responsibility 54, 62–63
on compliance with performance standards 54, 105–106
Australia Day 47
Australia Post Superannuation Scheme 41, 85
Australian air Express (AaE) 5, 17, 32, 77, 86
Australian Legends Award 2005 47, IBC
Australian Open tennis tournament 47, IBC
Australian Postal
Corporation Act 1989 5, 20, 25, 51, 52, 69, 110–111
awards
Australia Post Community Champion Award 36–37, 45
National Excellence Awards 41
Prime Minister’s Gold Award for
Excellence in Public Sector Management 42
Safety, Rehabilitation and Compensation
Commission Safety Awards 42
Shared Services Asia–Pacific Excellence Awards 28
B
Bank@Post 7, 27
banking services 5, 7, 12, 13, 27, 51
barcoding 21
basic postage rate 3, 20, 51
Be Seen in Red and Green charity day 47
bill payment services 3, 5, 7, 12, 13, 24, 26–27
Billmanager 27
board of directors 52–53, 58–59, 81, 84
bonds 72, 75
borrowings 72, 75
brand management 50
Breast Cancer Network Australia (BCNA) 46
bulk mail 5, 9, 12, 18, 19, 21, 45
Bulk Mail Partner program 9, 21, 45
business centres 25, 26
business continuity planning 55
business segments, accounting for 96–97
business strategy 5, 7, 33
C
capital expenditure 11
Cards 4 Planet Ark 49
Cartridges 4 Planet Ark 49
cash 70, 98–99
Cash Flows, Statement of 67
cash management 11
change management 9, 40, 43
Charity Mail 5, 47
China Post 7, 32, 33
Clean Mail 5
Code of Ethics 4, 53
Commitments, Schedule of 68
Commonwealth Authorities
and Companies Act 1997 52, 64, 69, 110–111
Commonwealth Games 2006 47
community 44–47
community consultation 44
community groups, support for 47
community investment 46–47
community postal agencies/agents 25, 51, 117
community service obligations (CSOs) 8, 20, 50, 51, 104, 116
conflict of interest 53
Contingencies, Schedule of 68
core business 5, 6, 11, 14–35
corporate governance 50, 52–55
corporate outlets 117
corProcure 34, 77
courier services 3, 5, 7, 9, 31–32
(see also Express Courier International,
Messenger Post Couriers, SnapX)
credit rating 50
credit risk 93
creditors 72
customer consultation 45
customer contact centres 44
customer research 44
customer satisfaction 19, 44
customer service programs 26
customers served 3, 4, 12, 13, 24, 25

D
debt (long-term) 11
debt to debt plus equity 11
Decipha 5, 12, 17, 22, 77, 100
delivery: see letters; mail delivery
depreciation and amortisation 69, 74, 75
Development Pathways project 43
direct mail/marketing 14–15, 21–22
(see also promotional mail)
directors: see board of directors
Directory (of Post contact points) back cover
discrimination and harassment 43, 53
diversity
biological 49
workforce 42–43
dividends 10, 11, 50, 51, 69, 70, 84, 113, 116
drivers’ licence applications 27, 28
E
Easy Mail 22
ecologically sustainable development 40
economy 50–51
EDI Post 5, 12, 21
education and literacy, support for 46
employee benefits 41, 71, 74, 79, 80
employees and contractors 4, 13, 40–43, 51, 116, 121
EMS International Courier: see Express Courier International
energy management 48
enterprise bargaining agreement 9, 41
environment 46, 48–49, 55
Environment Management System 48
Environment Protection and
Biodiversity Conservation Act 1999 110, 112
eParcel 5
equal employment opportunity 42
equity, analysis of 80, 101
Ethics Committee 53
Executive Committee 56–57
expenditure 11, 65, 116
Express Post 5, 9, 30, 31–32
Express Courier International (ECI) 3, 7, 9, 12, 30, 32, 34
F
financial instruments 91–95
Financial Performance, Statement of 65
Financial Position, Statement of 66
financial reporting standards 11
Financial Statements 60–68
Notes to and Forming Part of the 69–103
five-year statistical summary 10, 116
foreign currency 72, 91–92
fraud 114–115
Freedom of Information Act 1982 110
fuel emissions 49
fulfilment 5, 7
future: see outlook
G
gearing 11
Geospend 12, 22, 77
Get a Balanced Life program 42, 46
giroPost 7, 27
(see also banking services)
Global Reporting Initiative 40
governance, corporate 50, 52–55
greenhouse gas emissions savings 3, 48–49
INDEX
FOR THE YEAR ENDED 30 JUNE 2005
H
harassment: see discrimination and harassment
health and wellbeing (of staff) 42, 43
(see also occupational health and safety)
health (community), support for 46
hedging 55, 72, 91
heritage management 45
Human Resources Committee 52, 53 55
human rights 45
I
identification services (personal) 7, 26, 27
identity checks: see identification services
Impact Mail 5, 7, 9, 18, 22
Indigenous employment 42, 43
injury 42, 43, 55
insurance 55
intangibles 71, 89–90
intellectual property 50
internal control 55, 64
international couriers: see Express Courier International
international gateway facilities 12, 32
international mail 19, 30, 32, 34
inventories 70
inventory management system 25
investments 70, 77, 86–88
iPrint 34, 77, 86
J
joint ventures 5, 9, 32, 33, 34, 84, 86–88, 100
(see also Australian air Express; iPrint; Post Fulfilment
Online; Star Track Express; SWADS)
Juvenile Diabetes Research Foundation (JDRF) 46
L
labour productivity 2, 3, 10–11, 41, 51, 116
leases, operating and finance 70, 98
letter volumes (domestic) 6, 9, 11, 12, 19
letters 18–23
delivery performance 2, 3, 12, 18, 19, 107, 108, 116, 120
service/market 5, 6–7, 8–9, 12, 18, 19
liabilities, contingent 68, 103
(see also assets and liabilities)
licensed post offices (LPOs) 25, 26, 51, 117, 121
Licensee Advisory Council 26
licensees 13, 26
loans 72, 99
logistics 3, 5, 9, 12, 33, 35
(see also parcels and logistics; SnapX; SWADS;
Sai Cheng Logistics)
lost-time injury frequency rate 2, 42
M
Mail & Networks Division 20, 31
mail articles posted 97, 116, 121
mail contractors: see employees and contractors
mail delivery
frequency of 119
network 31, 118–119
points 3, 4, 51, 116, 118
mail volumes 10
mailroom services 12, 22
Major Mail Users of Australia 21, 45, 114
Mater Foundation support 46
medical research sponsorships 46
Mensline Australia 42
Messenger Post Couriers 5, 12, 15, 17, 32
money transfer services 7, 27
Australia Post Annual Report 2004/05 Financial and Statutory Reports
Index
| 123 |

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Index
| 124 |
INDEX
FOR THE YEAR ENDED 30 JUNE 2005
N
National Archives of Australia 45
National Literacy and Numeracy Week 46
National Philatelic Collection 45
Notes to and Forming Part of
the Financial Statements 69–103
Notes to the Statement of Cash Flows 98–99
O
occupational health and safety 40, 42
oil usage 49
Olympic Games 3, 12, 24, 25, 47, IBC
organisational structure 56
ourcommunity.com.au 22, 46, 47
outlets, postal/retail 7, 13, 20, 116, 117, 118
outlook 11, 12, 22, 28, 34, 60
OzOpera 47
P
Parcel Post 5, 17, 31
parcel processing 30
parcel volumes 12, 30, 31, 33
parcels and logistics 3, 5, 7, 8, 11, 12, 30–35
parcels service 5, 7, 34
(see also parcels and logistics)
passport applications and interviews 3, 24, 27
people management 40–43
philanthropy 46, 47
philatelic 25, 27, IBC
Post Fulfilment Online 5, 34, 77
Post Logistics: see logistics
post offices: see outlets, postal/retail
post office boxes 19
postage rate, basic 20, 116
Postal Services Consultative Council 45
Postbillpay 12, 26, 28
(see also bill payment)
posting facilities 2, 13, 44, 116, 118
PostShops 25–26, 117
PreSort letters 5, 21
Print Post 5, 21
PrintSoft 9, 77, 101
priorityCustomer program 26
privacy 55
productivity 2, 3, 11, 41, 51, 116
professional development 43
profit 2, 3, 8, 10, 11, 50, 65, 116
Profit and Loss Statement: see Financial Performance,
Statement of
promotional mail 7, 9, 12, 19, 21–22
property, plant and equipment 70, 78, 89–90, 96
property portfolio 120
Q
Qantas: see Australian air Express; Star Track Express
R
RACV 14–15
recycling 38–39, 49
remuneration 53–54, 81–83, 84
Reply Paid 5
reporting requirements, statutory 110–115
research and development 72, 75
reserved/non-reserved services 51, 109
retail and agency services 5, 7, 8, 12, 24–29
retail outlets/network 2, 12, 24, 25, 29
retail products 25
Retail Star Performance program 26
retail revenue 25
return
on average operating assets 10
on capital 50
on equity 2
on investment 50
on revenue 10–11
revenue collection 50
revenues 2, 8, 10, 11, 12, 19, 25, 26, 33, 50, 51,
65, 69, 73, 116
risk management 52, 54–55, 64
Risk Management Committee 54
rural, regional and remote locations 23, 24, 27
S
safety 42, 43
Sai Cheng Logistics 9, 33, 77, 86, 100
Santa Mail 3, 46
Schedule of Commitments 68
Schedule of Contingencies 68
school visits 45, 46
Shared Services Division 28
SnapX couriers 3, 9, 12, 30, 32, 77, 100
social letters 19
sponsorships
commercial 47
community 46–47
sport, support for 47
staff: see employees
stakeholder consultation 44–45
stamp issues 25, 47, IBC
stamps: see philatelic
Star Track Express 5, 32, 77, 86
State Warehouse and Distribution Services: see SWADS
Statements by Directors 64
Statement of Cash Flows 67
Statement of Financial Performance 65
Statement of Financial Position 66
stationery 25
Staying Connected program 42
student identity cards 28
succession management 40, 43
superannuation 41, 71, 85
sustainability 40–51
SWADS 3, 5, 9, 12, 30, 34
T
taxation 51, 71, 75, 78, 79, 80, 116
telecommunications products 5, 25
trade practices compliance 55
transactional mail 7, 19
travellers’ cheques 5, 26, 27
treasury policy 55
Treasury Risk Management Committee 55
tsunami appeal 3, 47
UV
Unaddressed Mail service 5, 19, 21
Universal Postal Union 19
values 4
W
wellbeing: see health and wellbeing
Westpac Banking Corporation 16–17
whistleblowing 53
workers’ compensation 71–72
workforce composition 42–43
workforce planning 43