The Australian government has committed AU$40.5 million (approximately €24.8 million) to accelerate the electrification of Australia Post’s delivery fleet as part of the 2026/27 federal budget.
The funding will support the rollout of larger electric delivery vehicles and expanded charging infrastructure, reducing the postal operator’s reliance on diesel-powered transport.
Expanding Beyond Smaller EVs
Australia Post’s existing electric fleet is primarily made up of two- and three-wheeled delivery vehicles.
The new investment will enable the organisation to deploy larger electric vans, trucks and prime movers on a broader scale as part of its fleet transition strategy.
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The Australian government said the move will help improve energy security by reducing dependence on diesel and limiting the impact of fuel supply disruptions on delivery operations.
More Than 100 Additional EVs Planned
Australia Post Executive General Manager for Network Operations Shane Plant said the funding is expected to add more than 100 electric vehicles to the delivery fleet.
According to Plant, the expanded fleet is expected to reduce diesel consumption by approximately one million litres annually, equivalent to around 2.3% of the organisation’s yearly fuel use.
Part of the investment will also fund the installation of additional charging infrastructure over the next two years.
Plant said the new charging sites are expected to incorporate solar panels to further reduce operational emissions.
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Building on Existing Fleet
Australia Post Group Chief Executive Officer and Managing Director Paul Graham said the investment builds on more than a decade of fleet electrification.
“Australia Post has been at the forefront of electric vehicle adoption for over a decade, and this investment allows us to go further faster.”
During the 2024-25 financial year, Australia Post introduced 426 electric vehicles, including 251 electric three-wheelers and 175 UBCO electric motorcycles.
In 2025-26, the organisation expanded into larger commercial EVs by deploying 36 Mercedes eVito electric vans and one Mercedes eActros electric truck.
It also began rolling out 500 Gaius Rapide 3 electric three-wheel motorcycles, expanded its UBCO motorcycle fleet to 1,000 units and placed an order for a further 1,500 vehicles.
Communications Minister Anika Wells said Australia Post now operates more than 5,100 electric vehicles, which collectively travel approximately 29 million kilometres each year.
