Stamp price increase approved as Australia Post says letter volumes are at 1930s levels
Australia Post will increase its basic postage rate from $1.70 to $1.85 from September 1 after the ACCC confirmed it would not object to the increase.
The change comes as letter volumes have fallen to levels not seen since the late 1930s, with Australia Post arguing it needs higher prices to make its letter service sustainable.
The proposed 15-cent increase, which is still subject to final regulatory processes, continues a long-standing upward trend in postal prices.
Twenty years ago Australians could send a standard letter for 50 cents. This rose to 55 cents in 2008, 60 cents in 2010, and 70 cents in 2014; Then there was a sharp jump to $1 in 2016.
From there the price rose steadily to $1.70 in 2025. By September, the basic stamp will have increased by $1.35 since the mid-2000s.
Australia Post said the regulator’s final opinion paves the way for an increase in reserved ordinary letter services, subject to final regulatory steps being completed.
The full-rate stamp will increase by 15 cents, while concession and seasonal greeting stamps will remain at 60 cents and 65 cents, remaining at those levels for more than a decade.
Australia Post has increased the number of discount stamps available for purchase each year from 50 to 75 in a bid to soften the blow for eligible customers. Charities will continue to have access to the discounted Charity Mail service.
The price increase comes against a backdrop of a sharp long-term decline in traditional mail.
Australia Post said in a statement that the “continued decline in letter volumes has now reached levels not seen in Australia since the late 1930s.”
“Less than 3 per cent of letters today are sent by consumers, with the majority sent by businesses and government agencies,” Australia Post said.
As digital alternatives continue to replace paper mail, the service is used less and less by households and more by institutions.
Despite this, Australia Post maintains the impact on most households will be moderate.
“Australian households purchase an average of five full rate stamps each year and the cost impact of this increase is expected to be an extra 75 cents per year,” it said in a statement.
The postal operator also sought to frame the increase in an international context, stating that Australians “will continue to have some of the lowest stamp prices in the OECD”.
“Australia Post continues to adapt to the ongoing structural decline in letter volumes and increased delivery points while remaining committed to maintaining a sustainable, accessible letter service for all Australians.”
