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The Department provides advice to the Australian Government on postal policy and legislation and on issues affecting the postal industry, including setting broad strategic policy framework and goals for Australia Post and consultations with industry, consumer groups and other government agencies and stakeholders.

Australia Post is the major organisation in the Australian postal industry. Within the private sector, the Major Mail Users of Australia is the peak industry body and represents major mail generators and mailing houses in Australia.

Letters under 250g must be carried by Australia Post at a uniform rate across Australia. All other Australian postal services are open to competition, which provides opportunities for private mail operators to develop value-added services and niche markets. Competitive areas of the postal market include upstream operations, such as mail houses, printers and mail aggregators, and downstream areas such as parcel delivery, express mail and track and trace courier services.