Post prices on the rise again

Australia Post has notified the ACCC of a proposed increase in the standard postage rate.

Post prices on the rise again

Australia Post has notified the Australian Competition and Consumer Commission (ACCC) of a proposed increase in the standard postage rate. The increase, from 60 cents to 70 cents, will be the fourth of its kind in the last 22 years, with the previous in 2010 when the cost rose from 45 cents to 60 cents.

The move will address the issue of inflation with Managing Director and CEO of Australia Post, Ahmed Fahour, claiming “the current stamp price no longer reflects the true cost of delivering each letter and stamp price increases have not kept up with inflation”.

According to Mr Fahour, the 10 cent increase will help to partially offset Australia Post’s growing losses, which totalled $218 million in its regulated mail business for the 2012/13 financial year. This is in addition to the domestic mail business losing $147 million for the same period.

These increasing losses are due to falling letter volumes with a recorded 231 million fewer letters posted in the 2012/13 financial year, 6.4 per cent down on the previous year. On top of this, over the past five years, the volume of domestic letters posted in Australia has dropped by around 1 billion items.

The proposed price increase is set to flow through as additional payments to Licensed Post Office operators, in an attempt to help maintain the feasibility of a nationwide Post Office network. The domestic delivery network has expanded in line with the growth of Australia’s population over the past five years, which has increased from 10.5 million addresses in June 2008 to 11.2 million addresses in June 2013.

The notification also included a proposal to introduce a concession rate stamp. The stamp, available to an estimated 5.7 million eligible Australians, will allow them access to 60 cent postage on standard letters until 2017. “We are very mindful of the potential cost-of-living impact this increase might have on Australians – particularly pensioners, job-seekers and low-income earners and that’s why we’re proposing the introduction of the Concession Stamp Rate,” stated Mr Fahour.

 “We are always reluctant to increase the price of postage but we know that it’s absolutely necessary to maintain essential services,” added Mr Fahour. It’s not all bad news though, even at 70 cents the Australian domestic stamp will remain among one of the lowest priced compared to the other countries in the Organisation for Economic Co-operation and Development (OECD).

What do you think? Is 70 cents too much to pay for a letter? Is this just a grab for money, or do you support Australia Post charging more for its services?





    COMMENTS

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    ourjeffie
    31st Jan 2014
    10:42am
    70 cents is a remarkably small price to pay to have a letter delivered anywhere in Australia. What else can you get for 70 cents these days?
    Aloysius
    31st Jan 2014
    11:21am
    No comment on parcel post, which is very expensive. If I send a gift by post, the postage often is higher than the value of the gift. $15 local postage on a book this week.
    KSS
    31st Jan 2014
    2:38pm
    I feel your pain.

    It is for that reason that I do on-line shopping. Since all my family is overseas that makes a huge saving even allowing for exchange rates on the currency.I can buy the gift in UK for delivery in UK.

    Even when buying from Australian retailers most of the time you get free shipping!
    zwaaltje
    31st Jan 2014
    2:07pm
    I have not found a it mentioned anywhere that postage was increased for overseas mail. I send Christmas cards & birthday cards to family and friends overseas.To my surprise last December I had to pay $2.55 for each stamp to put on my Christmas cards. In December 2012 it was $1.60. That makes an increase of 95 cents per stamp!!
    Aloysius
    31st Jan 2014
    2:15pm
    yes - I had that nasty surprise also.
    KSS
    31st Jan 2014
    2:34pm
    Yes me too!
    pelagia
    31st Jan 2014
    6:05pm
    I am extremely disappointed with Australia Post....I have a large number of family living overseas and I like sending them postcards etc, but not anymore.....to send a postcard or even any card would cost $2.60 per card.....how very disappointing....I got a big shock when I sent 30 Christmas cards overseas...I have to say I was very angry...there is no insentive anymore...what is the matter with these CEOs...maybe their pays should come down!!!
    zwaaltje
    31st Jan 2014
    7:15pm
    Take parcelpost. example 10kg send from Holland to my home $A89.80 delivery time 7 to 10 days. same parcel in reverse$A115.40 for seafreight and $A234.30 for airfreight.Take your pick the delivery time from Holland is not seafreight.Were is the justification for this price discrepancy.
    unicorn
    1st Feb 2014
    11:13am
    Probably help to pay for his wages more like it,,,
    Qatro
    1st Feb 2014
    2:08pm
    The rise in the rate for standard letter postage from the late 90's to 2014 is pretty much in line with inflation over those years. When GST was introduced in 2001 Australia Post absorbed the cost and did not raise the price for a couple of years.


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