Australia Post will deliver letters only every second day from next week as new performance targets are rolled out.
The change will begin next Monday and is part of a shake-up announced by the federal government last year and follows months of public consultation.
The performance targets are needed to meet a surge in demand for parcel deliveries and a slump in letter deliveries, the government says.
The latest figures from Australia Post show that four in five households bought something online last year, with 9.5 million households receiving a parcel.
In contrast, letter deliveries continue to decline, reducing two-thirds since their peak in 2008.
The new performance targets also give the government-owned corporation an extra day to deliver standard letters.
For inter-state deliveries, letters should take from six to eight days.
Australia Post will also be able to tweak how it manages priority mail, enabling it to deliver services “at a more commercial rate”.
Many people are already familiar with the changes in letter deliveries since trials were held in capital cities last year.
The government says the number of post offices across Australia won’t change.
Posties will also continue their daily deliveries, but parcels will be given priority.
Communications Minister Michelle Rowland said the overhaul in services was essential for Australia Post.
“These changes reflect the way Australians now interact with Australia Post, and will help improve the company’s financial sustainability,” she said.