Australia Post is poised to raise stamp prices if its proposal gains government approval. The suggested increases reflect a bid to counteract the significant drop in letter volume. The price for ordinary small letters will rise from $1.50 to $1.70, while the cost of standard large letters weighing up to 125g will climb from $3.00 to $3.40. Additionally, the price for large letters weighing between 125g and 250g will increase from $4.50 to $5.10.
The Australian Competition and Consumer Commission (ACCC) announced it does not plan to oppose these changes, although it is seeking community feedback before making a final decision. Concession stamps, which are priced at $3 for five and 65 cents for seasonal greeting card stamps, will not see an increase.
This pricing strategy has emerged following a 10.6% drop in letter volumes, resulting in a substantial loss of $83.7 million for Australia Post’s letter services. An Australia Post spokesperson noted that the declining trend is a global issue faced by postal services.
The proposed price hikes are intended to mitigate losses and enable Australia Post to continue serving its customers and communities effectively. In a preliminary assessment, the ACCC concluded that recovering more revenue than costs from reserved postal services is unlikely for Australia Post in the coming years.
ACCC Commissioner Dr Philip Williams underscored the importance of considering the implications of these price increases on businesses that rely heavily on mail services. He suggested that alternative arrangements should be explored to ensure affordability for businesses that cannot easily transition to electronic communication, beyond the current bulk rates available.
The ACCC will announce its final decision following a formal notification from Australia Post regarding the proposed price changes, which do not require ACCC approval but can be contested by the watchdog. Australia Post must also formally notify the Minister for Communications about the proposed adjustments.