Beginning next month, Australia is set to experience an increase in stamp prices imposed by Australia Post, with raises of up to 60 cents per letter. The Australian Competition and Consumer Commission (ACCC) has confirmed that it will not oppose this hike, which is expected to take effect on July 17.
The new pricing structure will see the cost of postage rise from $1.50 to $1.70 for standard small letters. Larger letters will also see increases, with the price for ordinary letters weighing up to 125 grams increasing from $3 to $3.40, and those up to 250 grams rising from $4.50 to $5.10. However, the prices for concession stamps and seasonal greeting cards will remain unchanged.
ACCC Commissioner Anna Brakey acknowledged that these price hikes will place additional financial strain on consumers, but the commission’s decision not to challenge the increase is based on substantial evidence showing that Australia Post’s costs of providing letter services significantly exceed the revenue generated. Over recent years, Australia Post has faced considerable financial losses in its letter delivery sector.
Currently, the average household receives around two letters per week, a volume anticipated to plummet by another 10.6% by 2028. The ACCC indicated that even with the proposed price adjustments, Australia Post is unlikely to recoup its letter service revenue.
Brakey highlighted the need for Australia Post to explore measures to address affordability, particularly for businesses reliant on physical mailing. Recommendations were made to increase the number of concession stamps available to customers, which is currently limited to 50 stamps per year.
Despite the impending increases, Brakey pointed out that the new price of $1.70 per stamp is still lower than the median price of $1.93 charged by private postal services. Australia Post initially proposed these price changes in November of the previous year. Although the ACCC lacks the authority to approve these price hikes, it can register objections against them. Absent any rejections from the federal communications minister, these new prices are set for implementation on July 17.