Australia Post has announced its intention to raise stamp prices by 15 cents per letter in an effort to counterbalance financial losses. This proposed change is slated to take effect mid-year, pending approval from the Australian Competition and Consumer Commission (ACCC).
The postal service is seeking permission to adjust the basic postage rate from $1.70 to $1.85. However, the cost of concession stamps and seasonal greeting cards will remain unchanged at 60 cents and 65 cents, respectively.
In an effort to provide some economic relief, Australia Post has increased the annual allowance of concession stamps for eligible customers from 50 to 75. This move aims to ease the burden on those who rely heavily on postal services.
Interestingly, less than 3 percent of letters are sent by individuals, with businesses and government agencies accounting for the bulk of mailed correspondence. Despite the price hike, the average annual impact on Australian households is expected to be minimal, amounting to less than $1 extra per year.
Fewer than 3 per cent of letters are sent by individuals, with the vast majority mailed by businesses and government agencies.
The average cost impact to Australian households of the proposed price rise to $1.85 will be less than $1 extra per year.
Australia Post’s letters service has steeply declined and is now at levels recorded in the 1930s.
In the past financial year, volumes dropped a further 11.7 per cent (excluding election activities).
Even with the contribution of elections, the letters service still reported a $230.4 million loss.
Australia Post group chief executive officer Paul Graham says despite the slump in demand for letters, the corporation was still delivering them to more addresses.
“As letter volumes continue to fall as customers increasingly take up digital options, Australia Post needs to ensure the Letters service remains sustainable now and into the future,” he said.
“The proposed increase is one of the ways we are responsibly addressing our financial challenges so we can keep serving our customers and communities.”
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