ANZ Refused the Australia Post Deal as It Finds the Deal Unfair

  • Oct 23, 2018 AEDT
  • Team Kalkine
ANZ Refused the Australia Post Deal as It Finds the Deal Unfair

ANZ Banking Corp finds the fee to access all the branches of Australia Post to be unfair, hence refused to pay the fee of $22 million a year.

As per Shayne Elliott who is the chief executive officer of ANZ, Australia Post is asking to pay three to four times more per transaction as CBA is paying through post offices which he thinks to be unfair and stated the same in a conference at Sydney. In the Senate's environment and communication legislation committee in Canberra, the CEO of Australia Post Christine Holgate has threatened ANZ in regard to the fee disputes and also warns to cut off the services of ANZ customers after the expiration of the agreement in three months.

Previously, the post office did not charge any access fee from the banks which are not being charged in addition to the transaction fee. She also stated that Westpac and National Australia Bank have also agreed to pay $22 million annually as community access fee above the per transaction fee ranging from $2.50 and $3. 

Mr. Elliott agreed that in the past three years the contract was underpriced for which he is ready to pay two to three times more per transaction. However, he believes that the access fee of which the Australia Post is charging is not negotiable. He does not agree on the access fee charge instead he says that they will look for some alternate solutions. Mr. Elliott believes that the structure of Australia Post is unfair and mentioned about the cost per transaction of ANZ is much above the transaction cost which Sydney bank is paying. This will result in ending up paying three times more for the same transaction. He also makes comment stating that people who need to access the branch network of ANZ are not required to pay for that instead this is what is expected from them.

Mr. Elliott disagrees in regard to the new community fees which cost ANZ five times above the transaction fee on per transaction basis. He says that it might be possible that as a result of declining revenue from the stamps which is the biggest challenge for the post office is causing them to charge from the bank. Mr. Elliott also brings into the picture about the number of customers using Australia Post for business banking services, mostly depositing coins. These are 900 in number. He also says that around 1200 ANZ retail customers who are also using Australia post branches but uses ATM to withdraw money and use BPay for paying their bills.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK