Give us government services: Aust Post

The head of Australia Post is crying out for his organisation to be given more government services - including Medicare - in order to survive.

Ahmed Fahour told a Senate estimates hearing on Tuesday he hadn't had recent discussions with the government about the idea, but previously pushed for extra responsibilities.

"If we don't get these services these post offices are in a heck of a lot of trouble so this is about survivability for us," he said on Tuesday.

Mr Fahour said the government was not throwing services its way.

"We're pushing through the door and I would love that door to open up a little bit more," he said.

But claims Australia Post would be worth more if it had government contracts was a "red herring".

Mr Fahour warned letter volumes continued to decline, citing a 20 per cent drop in Christmas cards in 2015.