Stamp price hike needed yet again, Australia Post says
The cost of snail mail could rise again, with Australia Post saying it wants stamp prices 70 per cent higher than four years ago.
The Post Office asked the consumer watchdog on Friday to consider allowing the cost of stamps to rise 8.8 per cent from $1.70 to $1.85, bringing prices in line with comparative countries.
Caps weighing up to 125 grams will increase from $3.40 to $3.70, and caps weighing between 125 and 250 grams will increase from $5.10 to $5.55.
Declining mail volumes are cited as the reason for the need to increase elevator prices.
Excluding last year’s federal election, letter counts fell more than 11 percent last fiscal year, to levels not seen since the 1930s.
Australia Post has been out of pocket for more than $230 million to provide its mailing service, including increased traffic from postal voting.
Stamp prices have increased in recent years, reaching $1.10 in 2022 and $1.50 in 2024.
Despite the 68 per cent jump, the post office insists Australian stamps are among the most affordable among major economies.
The OECD average based on purchasing power parity is $2.60, and prices in New Zealand have more than doubled since 2020.
Plus, the average Australian who buys five stamps a year will barely notice the change.
The 15-cent increase is expected to cut letter losses in half, to $85.7 million. Australia Post says.
“As letter volumes continue to decline as customers increasingly choose digital options, Australia Post needs to ensure its letter service remains sustainable,” Australia Post CEO Paul Graham said.
Under the proposal, the cost of concession and seasonal stamps will not increase and will remain at 60 and 65 cents, respectively.
The Australian Competition and Consumer Commission will evaluate the proposal and solicit consumer and business feedback.
“The feedback we have received will help us evaluate Australia Post’s proposal, with a preliminary outlook to be published in the coming months,” Commissioner Anna Brakey said.
Australia Post is predicting 20-cent stamp increases in both 2027 and 2028.
Communications Minister Anika Wells will have the final say on whether the increase will continue.
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