General News
22 April, 2025
Stamp prices likely to rise
The price of sending a standard domestic letter may increase from $1.50 to $1.70 later this year following the ACCC’s preliminary view to not object to Australia Post’s proposed stamp price increase.
Australia Post’s draft proposal intends to address the businesses financial challenges in an increasingly digital world.
According to Australia Post, in the first half of FY25 letter volumes dropped 10.6 percent leading to a loss of $83.7 million for the letter service.
The mail service currently delivers around two letters per household per week and expects further decline, a trend that is consistent for both metro and rural areas.
Australia Post projects this trend to continue to decrease by 10.6 percent annually until 2027-28.
The changes would also be the third price increase within four financial years from $1.10 at the start of 2022-23.
The ACCC believe it’s unlikely the proposed changes will recover revenue in excess of Australia Post’s costs for its reserved postal service, according to ACCC Commissioner Dr Philip Williams.
“The ubiquity of digital communication options has impacted the commercial viability of letter delivery globally,” Dr Williams said.
“At the same time, Australia Post remains an essential national service — especially for vulnerable members of the community and those in regional and remote parts of the country.”
The price increase is expected to cost the average household, who sends six letters annually, about $1.20 more each year.
Not included in the proposed changes is a price increase of concession stamps ($3 for five) or stamps for seasonal greeting cards (65 cents).
However, the changes are likely to hit businesses and organisations the hardest, which Australia Post said make up the vast majority of letters.
The ACCC acknowledge businesses and organisations that sent letters the most, such as those with a legal obligation to communicate through the mail, would see the largest impact.
“For those businesses which are heavily reliant on the postal service or are unable to change to electronic alternatives, we consider Australia Post should explore ways to make letter sending more affordable in addition to the existing bulk rates on offer,” Dr Williams said.
The ACCC are currently seeking submissions on their preliminary view until 5 pm on May 12, 2025.
Submissions should be sent via email to: postalservices@accc.gov.au with further information on the ACCCs website.