Looking to Buy a Post Office?

Buying a Post Office

A Licensed Post Office (LPO) is a privately owned post office which is operated under contract (licence) to Australia Post. 

About LPOs

There are around 2900 Licensed Post Offices across Australia, comprising about 80% of the Australia Post retail network. They are privately owned and operated, and are often operated in conjunction with another business such as general store, pharmacy, Lotto agency, newsagency.

They vary from very small offices, usually in remote rural areas, to large suburban outlets. LPOs have access to Australia Post’s electronic point-of-sale system.

LPOs provide their customers with access to a wide range of products and services including postal products and services, billpay, banking, money orders, postal packaging and mail services. Most post offices also provide products and services such as stationery, greeting cards, phone cards, photocopying, small gifts and so on. PO box services are available at most LPOs and customers can arrange for mail redirection. LPOs are often open extended hours.

Licensees are not Australia Post employees, but have a Licence with Australia Post to operate the LPO. They provide their own premises, set-up and staff, and are paid fees, commissions and discounts for work performed.

Buying an LPO

Some LPOs are sold privately by the vendor while others are sold through an Agent.

The purchase price will vary according to many factors, including:

  • Location – suburban, regional, country
  • Premises – owned or leased
  • Number of terminals
  • Size of any in conjunction business
  • Income from post office part of the business
  • Income from the other part of the business
  • Size of premises
  • Condition of premises
  • Contents of disclosure document
  • Number of PO Boxes let

If you have questions about the price of a specific LPO, consider seeking professional advice.

There is no territory with a post office licence, nor is there a term to the Licence. A Licensee can sell the post office licence at his/her discretion, subject to Australia Post approving the incoming Licensee.

Any prospective purchaser should check their eligibility to be a post office Licensee with Australia Post prior to purchase. As well, Australia Post expects certain skills and standards from Licensees, including ability to relate to customers and to retain and build up the retail business. Trustworthiness, reliability and the ability to keep customers’ business confidential are essential.


Australia Post will provide training to the incomingLicensee, including training with Australia Post’s technology where applicable. Post office counter staff are the face of the post office and high standards are expected of them.

Franchising Code of Conduct

Licensees are also franchisees, and are thus covered by the Franchising Code of Conduct. A disclosure document must be provided to prospective purchasers by Australia Post and the vendor. Purchasers should acquaint themselves with the Franchising Code of Conduct, a copy of which is available through the ACCC.

POAAL is there to help you

When you sign your purchase contract, please contact POAAL and we will arrange to send you details on POAAL membership and some insurance information. We can help arrange the mandatory Public Liability insurance for you. You can complete an online expression of interest or ring our National Office on 03-96544533.