The price of posting an ordinary letter is likely to rise after the Australian Competition and Consumer Commission (ACCC) said it was unlikely to oppose an increase.
Australia Post is seeking to increase the basic postage rate from $1.50 to $1.70 as letter volumes continue to decline.
The organisation released a statement today welcoming an ACCC preliminary view that it would not object to the price increase.
It said, in the first half of 2024-25, letter volumes dropped 10.6 percent leading to a loss of $83.7 million in Australia Post’s letter service.
“The proposed price increase will help Australia Post address losses in this part of the business as it continues to deliver for its customers and communities,” the statement said.
“In recognising the cost-of-living challenges faced by vulnerable Australians, concession and seasonal greeting stamps, which have not changed in price for more than a decade, will remain at 60 and 65 cents respectively.”
Following its preliminary ruling, the ACCC will conduct a further round of consultation which will conclude on May 12, 2025.
Australia Post said, regardless of the ultimate outcome, Australians would continue to have some of the lowest stamp prices in the OECD.
The price of a stamp will have risen by 70 cents over eight years.
“Currently, the vast majority of letters are sent by business and government, with less than three percent of letters being sent by consumers,’ it said.
“The average household purchases five to six full-rate stamps each year. The proposed increase would cost them about an additional $1.20 each year.”
