The cost of sending a standard letter in Australia is set to rise after the consumer watchdog approved Australia Post’s price increase proposal.

The price of a standard postage stamp is expected to rise from $1.50 to $1.70, subject to final approval by the federal government.

Australia Post says the increase is needed as letter volumes continue to decline while delivery costs keep rising.

Furthermore, the company says Australians are sending fewer letters than ever before, making the traditional postal service more expensive to operate.

Additionally, pensioners and concession card holders will continue to have access to discounted stamps under the existing concession scheme.

Australia Post says the price increase will help maintain reliable mail services across the country, particularly in regional and remote areas.

Also the proposed increase is expected to take effect later this year if approved by the Australian government.

Businesses and consumers who rely on regular mail services are being encouraged to plan for the higher postage costs.

However, Australia Post says the change is part of broader efforts to keep the national postal network financially sustainable.