Australia Post has lodged a draft notification with the Australian Competition and Consumer Commission (ACCC), proposing an increase in the Basic Postage Rate from $1.20 to $1.50, effective January 2024.
The proposed increase will help address the rising costs of delivering letters and reduce losses in that part of the business as it continues to deliver for its customers and communities. Australia Post reported a $384.1 million loss in its Letters business in FY23 and an estimated cost of meeting its Community Service Obligations, as required under the Australian Postal Corporation Act 1989, of $442 million.
Australia Post has not proposed a change to the $0.60 price of concession stamps or the $0.65 price of seasonal greetings stamps. The prices of these stamps have not changed since they were launched nearly 10 years ago.
Australia’s domestic stamp rate continues to be one of the lowest in the OECD and has increased by just $0.20 in the past seven years. The average household sends around 15 letters a year and, if implemented, the proposed increase would cost about $4.50 extra a year.
Group Chief Executive Officer and Managing Director Paul Graham said Australia Post remains focused on delivering for all Australians, however this is only possible if the business is financially sustainable.
“We’ve made a number of changes in the past year to improve and simplify our business but, as we are entirely self-funded and receive no ongoing government funding, we need to ensure we reduce losses in our letters business.
“Each year, our Posties are required to deliver to more households, with approximately 200,000 new delivery points added to postal rounds in the last financial year. At the same time, letter volumes continued to decline, and we expect them to halve in the next five years.
“We’re committed to maintaining the letters service for communities across Australia and increasing the Basic Postage Rate will help us continue to deliver for all Australians,” Mr Graham said.
Media contact:
Tracy Hicks, General Manager Communications, Australia Post
M: 0477 027 860
Katherine Perry, Senior Media Manager, Australia Post
M: 0411 247 629
