Australia Post proposes to increase basic postage stamp prices to curb financial loss
With less and less Aussies sending letters by mail, Australia Post is hoping to increase stamp prices in an effort to curb its financial losses.
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Aussies could soon be paying more for a basic postage stamp as Australia Post has lodged plans to increase prices in an effort to offset any financial losses due to the dip in people sending letters.
Australia Post has lodged a draft notification with the Australian Competition and Consumer Commission (ACCC), proposing an increase in basic stamp prices from $1.50 to $1.70 from July 1, 2025.
Group chief executive officer and managing director Paul Graham said the proposal was a way Australia Post offsetting significant ongoing losses in its letters business.
“Australia Post continues to face structural challenges in its Letters business that are expected to only get worse,” Mr Graham said.
“This proposed increase will primarily impact business and government customers and is necessary to offset growing losses in our letters business, as more people choose to communicate digitally.
“We remain focused on continuing to deliver for all Australians, especially for communities in rural and regional Australia, but this is only possible if Australia Post is financially sustainable.”
The change will not impact concession and seasonal greeting stamp prices, which will remain at 60 cents and 65 cents respectively.
Australia Post reports that fewer than 3 per cent of letters are sent by individuals, with the vast majority mailed by businesses and government agencies.
Letter mail is now at a level not seen since the 1950s, with Australia Post experiencing continued structural decline. Volumes dropped a further 12.9 per cent in the 2023-24 financial year, resulting in a $361.8m loss.
Total letter volumes are expected to reduce further as digitisation increases.
Originally published as Australia Post proposes to increase basic postage stamp prices to curb financial loss
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