Australia Post Plans 13% Stamp Price Hike Amid Letter Service Losses

Australia Post is set to increase stamp prices by over 13 per cent starting July 17, with the price for a basic small letter rising from $1.50 to $1.70. The Australian Competition and Consumer Commission (ACCC) approved the hike due to significant losses in Australia Post's letter business, which lost over $361 million despite prior price increases and modernisation efforts. Large letter postage will also increase, with rates for letters up to 125 grams rising to $3.40 and those between 125 and 250 grams increasing to $5.10. To mitigate the impact on vulnerable Australians, the ACCC has recommended increasing the number of concession stamps per customer, currently capped at 50 annually, while concession stamp prices themselves remain unchanged. The ACCC emphasized the importance of transparent communication with businesses that rely on physical mail to prepare for potential future price changes. Despite declining letter volumes reaching levels not seen since the 1950s, Australia Post continues to face financial challenges from its letter service but benefits from growth in parcel deliveries.