Aussie could pay more for an essential item after the ACCC didn’t object to a price hike

Aussies could pay more for an essential item as Australia Post moves to increase the basic postage rate off the back of an $83 million loss.

Australia Post has warned consumers could pay more to post a letter after the competition watchdog did not knock back a request to increase the basic postage rate.

The national postal service proposed a price increase to its ordinary letter services, including a hike to the basic postage rate from $1.50 to $1.70.

If the proposed increase goes ahead, Australia Post predicts it will cost the average household an additional $1.20 each year to purchase five to six stamps.

Australia Post has proposed a price increase to its ordinary letter services including a hike to the basic postage rate from $1.50 to $1.70.

“Currently, the vast majority of letters are sent by business and government, with less than 3 per cent of letters being sent by consumers, which is expected to reduce further as digitisation increases,” an Australia Post spokesperson said.

Australia Post’s letter volumes has declined by 10.6 per cent since July last year, resulting in an $83.7m loss to its letter service, which is a decline being felt across postal services globally.

Australia Post is hoping to recoup some of its losses so it can continue its service delivery, but has acknowledged cost of living challenges for vulnerable Australians.

Australia Post’s letter volumes has declined by 10.6 per cent since July last year, resulting in an $83m loss to its letter service. Picture: NewsWire / Gaye Gerard

“Concession and seasonal greeting stamps, which have not changed in price for more than a decade, will remain at 60c and 65c respectively,” a spokesperson said.

The Australian Competition and Consumer Commission will start another round of public consultation which ends on May 12.

Australia Post will then lodge a formal application to the ACCC and provide 30 days notice before any price changes come into effect.

Originally published as Aussie could pay more for an essential item after the ACCC didn’t object to a price hike