Australia Post is a wholly owned government business enterprise. As such, our relationship with our shareholder is governed by the requirements of the Australian Postal Corporation Act and the Commonwealth Authorities and Companies Act. Shareholder responsibilities are exercised jointly by the Minister for Communications, Information Technology and the Arts, and the Minister for Finance and Administration. For more information,
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The corporate plan is the most significant element in our shareholder relationship. Submitted in June each year, the plan sets out the key strategies and targets for the following three-year period. The shareholder has 60 days from receipt of the plan to direct any changes to its financial targets or to its community service obligation strategies and policies. Progress against the plan is subject to formal quarterly reporting and subsequent review with shareholder departments. We also continuously disclose to our shareholder any matters relating to the proposed formation of a company, trust or joint venture, as well as any proposals for significant acquisitions or divestments.

Dividend recommendations are made to shareholder ministers twice each year: in February (interim) and August (final). In light of the corporation’s financial position and consistent with normal commercial practice, the board of directors decided in 2005 to increase our target dividend ratio from 60 per cent to 75 per cent of after-tax profits. Dividends payable from the 2005/06 result will be $267.3 million.