A virtual mailbox is a service that gives you a real street address where your mail is received on your behalf, then made available to you digitally. Instead of physically collecting your mail, you get notified when something arrives and choose what happens to it next, usually scanning, forwarding, or both.
The two actions, scanning and forwarding, are often used interchangeably but mean different things. Here is exactly how each works and when you need one over the other.
Mail scanning: reading your mail without touching it
Mail scanning means the provider opens your letter (or photographs the unopened envelope, depending on the service) and creates a digital copy you can view online. You read the content on a screen rather than waiting for the physical item to reach you.
This solves the actual problem behind most mail: you usually need to know what something says, not necessarily hold the paper in your hand. A letter from the ATO or your bank only matters because of its content. Scanning gets you that content immediately, regardless of where you physically are.
Mail forwarding: sending the physical item to you
Mail forwarding means the provider sends the physical letter or parcel on to wherever you actually are, rather than holding it at the original address. This matters for items that scanning cannot meaningfully replace: a replacement bank card, a signed contract that needs an original signature, or a parcel.
Why you generally need both, not one or the other
Most people who use a virtual address end up using scanning for the bulk of their mail, since most letters are purely informational, and forwarding for the smaller set of items that need to physically reach them. A service that only offers one or the other leaves a gap.
How this applies to ASIC and ABN registration in Australia
If you are using a virtual address for your company's registered office or your ABN, the address itself needs to be a genuine physical street address, not a PO Box. Once that requirement is met, scanning and forwarding are what make the address actually usable day to day, rather than just a compliant box you have to check on separately.
Space Penguin's virtual address service includes mail scanning and notification as standard, with mail forwarding available so physical items, including cards and parcels, can reach you wherever you are. Fair use applies to volume.
A quick way to decide what you need
If most of your mail is routine correspondence you just need to read, scanning covers it. If you regularly receive items that need to physically arrive somewhere, cards, signed documents, parcels, you need forwarding as well. Most small businesses and sole traders end up needing both, which is why it is worth confirming a provider offers each rather than assuming.
Space Penguin offers virtual addresses in Sydney and Melbourne from $20 per month plus GST, with no setup fee and no lock-in. Visit spacepenguin.io/virtual-address for current details.
FAQs
Is a virtual mailbox the same as a virtual address?
They describe largely the same thing. "Virtual address" tends to be used in Australia specifically for the street address used in business registration, while "virtual mailbox" emphasises the mail handling service itself. In practice, a provider offering one is generally offering both.
Do I need mail forwarding if I already have scanning?
It depends on what you receive. If you only get routine letters, scanning alone may be enough. If you receive cards, signed documents, or parcels, you need forwarding as well.
Can a virtual mailbox be used for ASIC registration?
Yes, provided the underlying address is a genuine physical street address and the provider gives written occupier consent for registered office purposes.
Is there a limit to how much mail can be scanned or forwarded?
Most providers, including Space Penguin, apply a fair use policy to mail handling. Check the specific terms if you expect high mail volume.