Following assessment by the independent Australian Competition and Consumer Commission (ACCC), the Government will not oppose Australia Post’s proposed increase to the cost of an ordinary stamp from $1.20 to $1.50 for letter delivery.
The ACCC assessed Australia Post’s proposed price increase, and following two rounds of public consultation, decided not to object on 18 March 2024.
The ACCC noted the increased costs of delivery combined with reduced revenue puts pressure on the financial sustainability of Australia Post’s letter services.
In addition, the ACCC found that the proposed increase was unlikely to result in Australia Post recovering more than its cost of providing letter services to Australians given the decreasing number of letters being sent.
The changes will not impact the cost of concessional stamps used by older Australians – which remain unchanged at $0.60 – or Christmas stamps – which remain unchanged at $0.65.
The ACCC has noted that the average Australian sends approximately 15 small letters a year, with the price increase amounting to an additional cost of $4.50 per year.
The Minister for Communications considered a number of factors as outlined in the Australian Postal Corporation Act 1989, including changes in the Consumer Price Index and Australia Post’s obligations, as well as the ACCC’s findings.
Australia Post notified its intention to increase stamp prices on 26 February 2024.
The Albanese Government is separately supporting Australia Post to modernise in response to changing consumer demands for parcels.
The Government’s proposal follows successful trials developed between Australia Post and the Communications Workers Union which boosted productivity and showed its possible to modernise the national postal service while supporting good, secure jobs.
Quotes attributable to Minister for Communications, the Hon Michelle Rowland MP:
“Following assessment by the independent consumer watchdog, the Government has decided not to oppose Australia Post’s application to increase the cost of an ordinary stamp.
“I have carefully considered a number of factors in making this decision, including the ACCC’s finding that the proposed increases are on a cost-recovery basis.
“I thank those who provided feedback to the ACCC over previous weeks.
“I look forward to working with Australia Post to improve its financial sustainability, including the implementation of the Albanese Government’s broader modernisation reforms in the coming months.”
