RURAL and remote Australians will be further disadvantaged when Australia Post's contract to process passport applications expires in June next year.
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Australia Post has provided application lodgement services on behalf of the Australian Passport Office since 1983.
The Department of Foreign Affairs and Trade (DFAT) will replace the existing application process with an online capability.
However, passport applicants will still be required to appear in person for identity verification, and DFAT is seeking a national service delivery to support the new process.
According to the chair of the Licensed Post Office Group, Angela Cramp, from remote NSW, post offices across Australia have processed 94 per cent of passport applications over the past 33 years.
"Over that time, what we have found is that more than 50 per cent turn up without the appropriate paperwork and have to return," Mrs Cramp said.
"More than 30 per cent have to return more than twice, so it averages out about three visits to get the paperwork processed.”
Mrs Cramp says there is a level of complexity involved, and extensive training and understanding of citizenship and proof of paperwork is required.
Also weighing into the debate is Queensland LNP Senator Barry O'Sullivan, who said it was “ludicrous” to lose passport services at a time when Australia Post was fighting for survival.
"We really need federal, state and local governments and the private sector to encourage the post office to deliver on other services, not take them away,” Senator O’Sullivan said.
"In regional and rural towns the local post office is the last institution standing and they are the 'maypole' of these communities.
"Rather than diminish the services they provide, we need to increase them to be the one-stop shop in the community, and customers should be able to transact banking, pay taxation and other bills, and lodge applications.
"Australia Post will find it difficult to balance its existing obligations, and this will compound the financial troubles for Post Offices in rural and remote areas."