Australia Post has raised the price of sending a letter, with a basic stamp now costing $1.85, an increase from $1.70, effective September 1. The price adjustment comes as the postal service faces declining letter volumes, which are shrinking by approximately 10% annually, and rising delivery costs.
Larger letters will also see price increases. Items weighing up to 125 grams will now cost $3.70, up from $3.40, and those up to 250 grams will increase from $5.10 to $5.55. However, concession stamp prices and seasonal greeting card stamps remain unchanged, at $3 for a booklet of five and 65 cents respectively.
Basic stamps have seen a significant rise over the past decade, more than doubling from 70 cents in 2014 to the current $1.85. The price of a basic stamp was $1.10 at the start of 2023, and Australia Post has indicated that further increases, potentially to $2.25 by 2028, have not yet been approved.
The Australian Competition and Consumer Commission (ACCC) stated it did not object to the price hikes, noting that Australia Post is still expected to fall short of covering the efficient costs of its letter delivery service, even with the increased prices. "Our findings suggest Australia Post will still fall slightly short of recovering the efficient costs of providing these services, even with the proposed price increase," said ACCC Commissioner Anna Brakey.
Brakey also noted that businesses relying on the postal service will bear the majority of the increased costs, and these expenses are likely to be passed on to consumers. "Businesses will bear most of the additional costs from this increase, and will likely pass these postage costs on to consumers," she said.
While Australia Post's losses have eased in recent years, partly due to earlier stamp price increases and changes to its delivery model, the shrinking volume of mail sent by Australians, now at levels not seen since the 1930s, continues to present financial challenges.