Stamp hike looms as falling revenue pressures Australia Post

As the digital age continues to evolve, traditional forms of communication like letter writing have seen a significant decline. This shift has had a profound impact on national postal services worldwide, and Australia Post is no exception. In response to a steady decrease in letter volumes and the resulting financial losses, Australia Post has proposed a price hike for stamps that could see Australians digging deeper into their pockets.

The proposed changes, which are awaiting government approval, would see the cost of an ordinary small letter stamp rise from $1.50 to $1.70. This increase is  a reflection of the challenges faced by Australia Post in a rapidly changing communication landscape. The price of an ordinary large letter up to 125g is set to increase from $3 to $3.40, and for those over 125g but under 250g, from $4.50 to $5.10. 

The Australian Competition and Consumer Commission (ACCC), in a preliminary decision, has indicated that it would not oppose the increase, which is slated for mid-2025. However, before making a final decision, the ACCC is seeking public feedback. Australians have until 5pm on Monday, May 12, to submit their views via email to the ACCC, providing a platform for consumers to voice their concerns or support for the proposed changes.

In the first half of FY25, Australia Post reported a further 10.6% drop in letter volumes, leading to a staggering loss of $83.7 million in its letter service. This decline is not unique to Australia; postal services around the globe are grappling with similar issues. The proposed stamp price increase is part of Australia Post’s strategy to mitigate these losses while continuing to serve its customers and communities.

Despite the proposed increases, Australia Post is not planning to raise the price of concession stamps, which remain at $3 for five, or the 65-cent stamps for seasonal greeting cards. This decision reflects an effort to maintain affordability for those who rely on these services the most.

The ACCC’s preliminary assessment found that even with the proposed price hike, Australia Post is unlikely to generate revenue exceeding its costs for reserved postal services. ACCC commissioner Dr Philip Williams has urged Australia Post to consider the impact on businesses and organisations that depend on postal services and are unable to switch to electronic alternatives. He suggests that Australia Post should explore ways to make letter sending more affordable, in addition to the existing bulk rates.

The final decision from the ACCC will come after a formal price notification from Australia Post. While the ACCC does not have the authority to approve the increases, it can object to the plan. Additionally, Australia Post is required to give written notice to the minister for communications.

For Australians over 50, who may have a particular fondness for traditional letter writing or who may not be as digitally connected as younger generations, this proposed price increase could be especially impactful. 

At YourLifeChoices, we understand that every dollar counts, especially for those managing on a fixed income. We encourage our readers to participate in the public feedback process and to consider the broader implications of a digital world on traditional services. 

How do you feel about the potential increase in stamp prices? Do you still rely on traditional mail, or have you fully embraced digital communication? Share your thoughts with us in the comments below.

Also read: Australia Post is making big changes to your mail delivery