Australia Post Chief Executive Paul Graham has been accused by a Senate inquiry of deliberately sabotaging post office businesses as part of a strategy to shrink the network and transform into a logistics company like FedEx. A leaked board-approved business case revealed plans to close 36 stores and reshape post offices into parcel lockers, contradicting Mr Graham's earlier claims to parliament that there were no active closure programmes. The investigation has alleged that Australia Post is using "unethical and improper tactics" to devalue small businesses and discourage licensees from operating.

The leaked "Licensed Post Office Reimagined" plan proposed shifting key services to host businesses such as pharmacies and newsagents. Mr Graham, who earns $3.3 million annually, has been accused of authorising legal threats against post office owners and staff following the leak. The company stands accused of deploying a "bait and switch" strategy to convert perpetual agreements into fixed-term contracts, substantially devaluing individual businesses and leaving owners with assets they cannot sell. Over 60 services have disappeared from post offices in the past 12 months, including Western Union transfers ending in October.