LPOG - Policy on LPO Viability

LPOG's Policy for Payment reform to ensure the viability of the LPO Network for a sustainable future.

LPOG’s Policy on LPO Viability August 2018.pdf

During the first half of 2018 LPOG has actively participated in a robust forum to undertake a review of the current payment schedule that sets out the payments made to Licensees, for the range of tasks we undertake for Australia Post.

It was greatly anticipated that this review would result in a much fairer, and more equitable reformed payment schedule, that would remunerate Licensees on a sound commercial basis, for the activities LPOs supply for Australia Post and our communities.  

The forum has spent 6 months so far, drilling down into what LPOG, and Australia Post, might consider constitutes fair and reasonable payments for Licensees. And in the middle is PIP (Partners in Performance) who undertook the 2015 review recommended by the Senate Inquiry trying to formulate the methodology of the future model. It is fair to say there is not much common ground showing as yet, but the work apparently is to continue.

What has been established for LPOG, through this work, is a solid understanding of what we consider is mandatory for a viable LPO network, based on industry and ATO benchmarks and standards for the retail Industry, for comparatively similar small businesses. LPOG believes strongly that we are a rather unique industry with unique risks, but for comparative purposes we do need to recognise, or align with, what could be considered like businesses. Pharmacies and newsagents rise to the top of the similar listing.

As a result LPOG has drafted our LPO Viability Policy and we an now release the document for consideration for our members and the LPO network in general.

Comments

Scott Evans's picture

I would preceed the text with:

About LPOG
LPOG represents working Licensees, owners of a Post Office License. LPOG is recognised as a representative group by AP and is an active participant in AP's engagement with LPOs (including commercial discussions held under confidentiality agreement). As such, LPOG represents Licensees from an informed position and with "skin in the game".

AP knowledge of LPO financial system (AT END)
AP provides the POS systems for all PO's and therefore knows the buying ans selling status is each and every PO. It therefore has deep knowledge of each PO's financial position.