Australia Post believes that online retail could balance the reduction in letter postage as they restructure their business.

The scheme known as Future Ready will see the Australia Post split into four business units – Postal Services, Retail Services, Express Distribution Services and E-Services.

The focus will be on domestic packages and parcels to Australia from abroad, which originate from online retailers.

The organisation's chief executive Ahmed Fahour states that "while the internet is the lesser business's worst enemy, it is the parcel business’s best friend."

Mr Fahour went on to say that the new structure would be in place by 2010/11 and would see growth from 2012 onwards.