You've got no mail: AusPost flags further delivery cuts

Australia Post will eventually only deliver mail every three days and ultimately once a week. (Joel Carrett/AAP PHOTOS)

Australian letter deliveries will continue to decline as Australia Post tries to balance its booming parcels business against plummeting mail volumes.

Packages and services revenue hit a record $8.01 billion in the year to June 30, while losses from sending letters fell to $63.2 million from a $230 million hit the year before.