No3 : Australia Post LPO overview and process

Licensed Post Office (LPO) information

Licensed Post Offices (LPOs) make up around two-thirds of our national postal outlet network, extending our reach to customers right across the country. There are currently around 2,900 LPOs.

How LPOs operate

LPOs may be run solely as a Post Office or in conjunction with another business, such as a newsagency or convenience store.

LPOs must offer a range of Australia Post products and services, including mail acceptance and processing, postage stamps, money orders, bill payment and banking.

They may also offer additional products and services including mail processing and delivery, philatelic items, packaging products, stationery, gifts and Post Office Boxes.

Why become an LPO licensee?

As a licensee, you'll benefit from:

  • use of our well established brand
  • annually revised fee and commission structure, with discounts for purchasing Australia Post products
  • access to management and business systems
  • ongoing training and support
  • opt in for point-of-sale and marketing programs

How it works

Here's the LPO model at a glance:

  • As a licensee, you'll be granted a licence to use our systems, manuals, trademarks and image in operation of the LPO
  • There is no term for the licence, which can be assigned or transferred at any time subject to our approval
  • You can manage the outlet on a day-to-day basis or appoint a manager. You're also responsible for recruiting, training and managing your staff
  • Trading hours are typically 9am to 5pm Monday to Friday and 9am to 12 pm Saturday. LPOs often open for extended trading depending on local circumstances
  • As a licensee, you're responsible for the premises. This includes fit-out (subject to our approval); maintenance; and operating costs. You may also need to pay a point-of-sale technology fee
  • You'll earn an income from fees and commissions for the work you perform. You'll also receive a discount when purchasing Australia Post products

Existing LPO opportunities

The most common way to become a licensee is to purchase an existing LPO.

If you're interested in purchasing an existing LPO check local newspapers, business broker listings and websites for LPOs that are advertised for sale.

If you are interested in a particular LPO, you can approach the existing licensee directly. Once you have reached an agreement to purchase an existing LPO, the existing licensee will notify us. We'll then commence the assignment / approval process.

I have reached an agreement to purchase an existing LPO with the licensee.

What happens next?

The licensee of the LPO will write to us to inform us of the pending business sale.

We will then contact you directly to start the assignment process.

What kind of documentation should I have available?

We will advise you in writing when certain documentation is required. Types of information which may be required include:

details of the legal entity you plan to list on the LPO agreement a resume outlining your employment history for the past 7 years details of your cash flow projections for the business

a site-specific business plan including goals for the business

a minimum of 2 business / professional referees and 1 financial referee

a personal assets and liabilities statement

details of your proposed financing arrangements for purchasing the business.

Please also be prepared to discuss your experience, skills, strengths and weaknesses with regard to all facets of running the business.

How long is the assignment / transfer process expected to take?

New LPO opportunities

The assignment / transfer process generally includes the following steps:

  1. Information request (conducted online)
  2. Assessment and selection interview (generally conducted at the
  3. relevant state head office)
  4. Australia Post training (conducted at state head office and a retail outlet)
  5. Signing of the agreement and business handover.

Each stage is reviewed against selection criteria before progressing to the next. The expected length of this process is 90 days.

What sort of training will I receive before I take over the outlet?

Training and assessment consists of induction, basic, advanced and site-specific training.

This includes a combination of:

  1. face-to-face sessions at a state head office
  2. self-paced CDs and workbooks
  3. on-the-job experience at a retail outlet

Costs for accommodation and travel during the training period are the responsibility of the prospective licensee.

All training must be completed to the required standard prior to assignment / transfer and handover of the business.