Australia Post has announced plans to increase stamp prices by 15 cents per letter from mid-year in an effort to offset ongoing financial losses in its letters service. The postal service said it is seeking approval from the Australian Competition and Consumer Commission to raise the basic postage rate from $1.70 to $1.85.
The prices of concession stamps and seasonal greeting cards will remain unchanged at 60 cents and 65 cents respectively. As part of additional cost-of-living support, Australia Post has also proposed increasing the number of concession stamps eligible customers can purchase each year from 50 to 75.
Officials noted that fewer than 3 per cent of letters are sent by individuals, with most mail originating from businesses and government agencies. The proposed price rise is expected to have a minimal impact on households, estimated at less than $1 extra per year on average.
Australia Post said letter volumes have declined sharply, reaching levels last seen in the 1930s, with a further 11.7 per cent drop recorded in the past financial year, excluding election-related mail. Even with election activity included, the letters service reported a loss of $230.4 million.
Chief Executive Officer Paul Graham said the price increase is part of efforts to ensure the long-term sustainability of the letters service as customers increasingly shift toward digital communication, while the company continues to deliver mail to a growing number of addresses across the country.
