Australia Post to Increase Letter Prices by 15 Cents

Australia Post will increase the price of a basic postage stamp by 15 cents, raising the cost from $1.70 to $1.85. The change is set to take effect on September 1, following a decision by the Australian Competition & Consumer Commission (ACCC) not to intervene in the proposed price adjustment.

The cost of a stamp for a small letter will see an 8.8 percent increase. Prices for large letters weighing up to 125g will rise from $3.40 to $3.70, and for letters between 125g and 250g, the price will increase from $5.10 to $5.55. Concession and seasonal greeting stamps will remain unchanged at 60 and 65 cents, respectively.

Australia Post attributes the price hike to a significant and ongoing decline in letter volumes, which have reached levels not seen in Australia since the late 1930s. The postal service estimates these volumes will continue to fall by approximately 10 percent annually in the coming years. Currently, fewer than three percent of letters are sent by consumers, with the majority being mailed by businesses and government agencies. Australia Post estimates the cost impact for the average Australian household will be an additional 75 cents per year.

This is not the first price adjustment in recent years; the most recent increase occurred in 2025. In a related move, Australia Post had previously increased the annual allocation of concession stamps for eligible consumers from 50 to 75, a change recommended by the ACCC.

ACCC Commissioner Anna Brakey stated that even with the proposed price increase, Australia Post is expected to fall slightly short of recovering the efficient costs associated with providing these services. However, she noted that recent price increases and adjustments to the delivery model are bringing the postal service closer to covering its costs for reserved letter services. Australia Post has also improved its cost allocation between reserved letter services and competitive parts of its business in response to ACCC recommendations on cost transparency.

Communications Minister Annika Wells has the authority to overrule the decision within the next 30 days, but the price increase is expected to proceed as planned. The price of a stamp has more than doubled over the last 12 years, having cost 70 cents in 2014.