Compensation

Before contacting the PIO with your complaint, we ask that you pursue the matter as far as possible with the postal operator.

Content

The PIO receives a large number of complaints from people seeking compensation. Typically this arises out of a postal item being lost or damaged, but there are other scenarios in which compensation may be sought, such as

  • consequential loss
  • a refund for a failed service (such as an Australia Post redirection)
  • damage to property (for example where a delivery contractor has a vehicle accident).

Terms and conditions

Each registered PPO has a document setting out their terms and conditions for the payment of compensation. These are generally available from the operator's website and/or may be part of any paperwork given to the customer. For example, the terms and conditions for Australia Post are available on its website.

There is generally a maximum payable amount for compensation depending on the mail service used. If your complaint relates to the amount of compensation paid or offered for a service failure, check the documentation (written or online) for the product or service you have purchased. If you have applied through the operator's processes but are not satisfied with the way your claim has been handled, you can contact the PIO.

Prohibited items

Some items are prohibited from carriage by the postal operator's terms and conditions. An example is Australia Post's prohibition on bullion. Other items can only be carried subject to conditions: for example, you can only send banknotes through Australia Post by the registered post service, and then only up to the face value of $200. No compensation will be payable if you send prohibited items, or do not follow restrictions on the way items may be carried.

Packaging

How you package your item also has a bearing on whether any compensation is payable.

You should check with the guidelines provided by the postal operator for the correct packaging of your item to reduce the chance of rejection of any claim for compensation due to damage.

Who can claim for compensation?

Australia Post

Generally speaking, the addressee is the one who claims for damage to a mail item. This includes where an item has arrived, but the contents are missing. Where the item is lost the sender is the one to claim.

The logic behind this approach is that where an item disappears, the sender is in the best position to confirm that it was indeed posted, and also the sender paid for the postage so it is the service they paid for that failed. The addressee may also have a right, in a commercial transaction, to require the sender to replace the item.

If the item is delivered, it may reasonably be considered to have become the responsibility of the addressee, so if it is damaged, the addressee can claim compensation.

The person with primary entitlement to claim compensation can usually transfer their right to claim to the other party in writing. For example, the addressee of a damaged item can transfer their right to claim to the sender. This is not the case for certain international mail services.

Private Postal Operators

Refer to the terms and conditions of service for information about who should lodge a claim for loss or damage.

Consequential loss

Consequential losses which arise from lost or damaged items may be excluded by a postal operator's terms and conditions. This includes such things as payment of late fees on bills, the costs involved in chasing up replacement items, and payment of fines resulting from non-payment of driver licences. If you are sending an item and are concerned that loss or delay may cause you financial loss, you should check with the postal operator's terms and conditions to see whether consequential loss of this nature will be compensated for.

International post

Australia is a member of the Universal Postal Union (UPU) which makes rules for the transfer of mail between member countries. Australia Post is required to follow these rules, which may affect whether compensation is payable for loss and damage, who should claim, and how much is payable. You can refer to Australia Post's International Post Guide on its website for more information.

International carriage by a PPO will be governed by its terms and conditions of service, in the same way as domestic carriage.