Australia Post is set to increase stamp prices by up to 60 cents per letter starting July 17, following a decision by the ACCC not to oppose the changes.
The ACCC announced it would not object to Australia Post’s 13.3% price hike, citing the postal service’s ongoing financial losses.
Under the new rates, small letter postage will rise from $1.50 to $1.70, large letters (up to 125g) from $3 to $3.40, and the largest letters (up to 250g) from $4.50 to $5.10.
Prices for concession stamps and seasonal greeting cards will remain unchanged.
ACCC Commissioner Anna Brakey acknowledged the added burden on consumers but emphasized that Australia Post’s letter service costs currently exceed its revenue.
Australia Post has faced significant losses in its letter delivery service and now delivers only about two letters per household per week.
Letter volumes are projected to decline by another 10.6% by 2028, further impacting revenue.
The ACCC recommended Australia Post explore ways to support businesses and vulnerable customers, including increasing the annual cap on concession stamps per customer.
Brakey noted that even after the increase, Australia Post’s $1.70 stamp remains below the median price of $1.93 charged by private postal operators.
Although the ACCC cannot approve price hikes, it can object—but in this case, it has opted not to do so, paving the way for the new rates to take effect unless rejected by the Communications Minister.
