What it costs to buy a post office in Australia
Licensed post offices are the classic steady-income acquisition: a government-anchored revenue stream, often with a freehold and a residence attached. A thousand people a month search for one. Here are the real prices.
What LPOs sell for
| Current listings | Price |
|---|---|
| LPO with freehold and residence, regional TAS | $415,000 |
| LPO plus freehold, regional SA | $725,000 combined |
| LPO and cafe, outer Melbourne | $900,000 plus stock |
| LPO business plus freehold, regional NSW | $1.35m combined |
| LPO with newsagency, regional VIC | $1.3m plus stock |
The wider market runs roughly $400,000 to $2m plus, with freehold packages toward $3m. About 2,900 of Australia's post offices are LPOs, two-thirds of the network, so the resale market is deep and always turning over.
How the income actually works
An LPO earns Australia Post fees and commissions, counter services, Bank@Post, bill payments, identity checks, box rents, plus its own retail alongside. They are valued as a multiple of net profit after a fair owner's wage, never on turnover, and here is the due diligence item that matters more than any multiple: commission rates are set per site in the licence agreement, so two identical-looking LPOs can earn differently. Read the licence, not just the books.
Newsagencies
The adjacent market runs $35,000 to $1.5m, typically $140,000 to $300,000 plus stock in the middle, with lotteries commission the real profit engine behind the paper racks. LPO-newsagency combinations, like the $1.3m Ballarat listing, stack both income streams under one roof.
Financing an LPO
Freehold-included packages are the bankable end: the property carries standard commercial lending and the business rides on top. Business-only LPOs price on earnings with goodwill funding limits, so buyer equity or property backing carries the gap, at roughly 6% to 9% p.a. property-backed as a working rule. Property-backed borrowers generally price around 6% to 9% p.a. and non-property-backed deals around 9% to 13%, with approvals commonly back in 24 to 48 hours. Start at business acquisition finance.
Frequently asked questions
How much does a post office cost to buy?
Current LPO listings run $375,000 to $1.3m plus stock, with the wider market $400,000 to $2m and freehold packages toward $3m.
How does a licensed post office make money?
Australia Post fees and commissions across counter services, banking, bill payments and box rents, plus the shop's own retail. Rates are set per site in the licence agreement, so verify them there.
Are post offices a good business to buy?
They are prized for steady, government-anchored income and often come with freehold and residence. The price already reflects that stability, so the value question is the licence terms and the local catchment.
How is a post office purchase financed?
Freehold packages carry standard property lending with the business on top; business-only LPOs need buyer equity or property backing behind the goodwill component.
Licence, freehold and funding, read together
Tell us the LPO and whether freehold is included and we will structure it, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.