FREQUENTLY ASKED QUESTIONS
The owner informed Australia Post that I am buying the business. What happens next?
1. Australia Post will contact you by phone/email and send you various forms to complete, for example a police check form, a request for Western Union Registration and Austrac integrity credentials.
You will also need to submit a business plan and cash flow projections.
2. Once all documents have been completed and returned to Australia Post, the documents will be reviewed. If the business plan and cash flow projections are deemed adequate, you will be invited to attend an online assessment to check your English literacy and mathematical ability. You will also attend an interview with Australia Post in which they will assess if you are suitable to become an owner of a post office.
3. If you fail the interview, you will not be allowed to buy a post office.
If you pass the interview, you will move on to the training stage, which typically takes 7 weeks:
a. The first week of introduction training will be spent in the head office or online on Zoom.
b. The next 3 weeks will be spent in a corporate post office (a post office that is owned by Australia Post, not a licensee), and also in an LPO.
c. At the end of the 3 weeks you will return to the head office/Zoom for a week of advanced training.
d. The last 2 weeks of training will be spent in the LPO you are purchasing so you can familiarise yourself with the business and its customers.
At the end of this training stage, assignment will take place and you will become the owner of the LPO.
The training with Australia Post costs between $2,500 plus GST to $4,000 plus GST.
Up to 3 people can attend the training and you can nominate a manager to attend the training on your behalf.
What assistance will I receive from Australia Post?
ongoing phone support, which is provided by specific Australia Post employees; and
direct assistance from a dedicated person (called a network manager) whose job is to help all outlets within a defined geographical area. This person will visit you at your business and provide you with advice and assistance.
Remember – your success is Australia Post’s success.
What income sources do I get from a post office?
Income sources include:
Commissions from transactions – Australia Post will pay you for every transaction that you make. When you scan a parcel you get paid. When you do a passport application you get paid. When someone pays a bill you get paid. Different transactions attract different commission rates. You can see how much commissions Australia Post pays the licensee in a document called “Poms”, which I will provide to you. This document shows the annual commissions paid to the licensee, the number of transactions and the rate of pay for each transaction.
Stock sales of Australia Post products – you will buy Australia Post items such as stamps, express envelopes, satchels and so on. Australia Post sells you these items at a discount and you sell the items at the advertised price.
Stock sales of other products – You can buy items such as gifts, toys, mobile phones and so on from other suppliers and sell them at any price you decide to.
Other services – some offices sell lottery tickets. Others act as an agent for a dry cleaning provider (people drop their clothes at the post office and the dry cleaning company collects the clothes). You can introduce various services if Australia Post approves them.
When buying an LPO, how do I know that the information provided to me is correct?
The information you are provided with is supported by documentation from Australia Post.
For example, if a commission of $100,000 a year is presented, there will be a document from Australia Post showing a commission of $100,000 a year.
Do I have to buy the stock from Australia Post?
The only stock you need to buy from Australia Post are postal products like stamps, express envelopes and so on. You can buy gifts, toys, stationary and similar items from any supplier. You do not need to buy non-postal items from Australia Post.
Can I sell anything I want?
You can sell similar items to the ones that are sold in other post offices - stationary, mobile phones, toys and so on. As long as you don’t sell items that harm the Australia Post brand it should be fine.
What are the licensing fees?
Once you have purchased the business, there are no licensing fees payable to Australia Post. You will only pay Australia Post for using the computer terminals. The payment for a computer terminal is $165/month (The first terminal is free).
What is the term of the license?
The license is yours forever. You buy the license from the seller, not from Australia Post. Australia Post just needs to approve the buyer when the license is sold – for example making sure the buyer has no criminal record.
Who arranges the lease transfer?
You lease the premises from a landlord. Australia Post has nothing to do with your lease.
You will usually sign a new lease agreement with the landlord and not take the old lease from the seller. This means that even if the current remaining lease is 2+5, you and the landlord will usually sign a new lease with you.
How do I finance the purchase of the post office?
If you need a loan, Banks can usually lend up to 50% of the purchase price of the post office. If you need a bank loan, you usually need to own property (your own house or an investment property).
How often will Australia Post pay me?
You don't have to wait for Australia Post to pay you – you can pay yourself. At the end of each day you will do a quick end of day balance on your computer and see how much you earned. You can pay yourself daily. You don’t need to wait until the end of the week or the month. There are some services (such as post boxes) that Australia Post pays you, but the majority of payments you make to yourself (you transfer money to your own bank account).
Do I pay commission to Australia Post on my sales?
No. Australia Post sells you products at a discount and you sell the products at the advertised price. The profit from sales of products you didn’t buy from Australia Post is all yours.
Do I pay Australia Post when I sell the post office?
No. The license is yours and Australia Post has nothing to do with the sale. Australia Post just needs to approve the buyer (for example – check there is no criminal record).
Do I need to get approval who I employ?
No. It is your business and you decide who you want to employ.
Can I relocate the post office?
Yes, you can relocate the post office if you wish. Australia Post will need to approve the new location. It needs to be in the same suburb or not too close to another post office.
Can I buy a new license from Australia Post?
No, you need to buy an existing license. In rare occasions Australia Post makes a license available and you will need to compete with other potential buyers. For more details please contact Australia Post on 131318.
How do I get more information about a specific post office?
In order for us to provide you with any information about listed post offices, we need you to complete a non-disclosure agreement. This agreement states that you will keep any information we provide to you about the listed post office confidential.
Please click on the red link below to complete a non-disclosure agreement: