Postage price rises approved

While everyone’s focus in parliament last week was on same-sex marriage, the price of the humble postage stamp is one step closer to rising.

The legal framework for increasing the price of posting a letter and introducing two-tier delivery speeds quietly passed through legislation last week.

Ordinary mail will rise from 70 cents to $1 and take an additional two days to reach its destination, while those who want their mail delivered at the current speed, will have to pay $1.40 for the privilege of priority post.

Those who hold a My Post concession card will continue to be able to purchase 60-cent stamps, which will allow for mail to be sent at the slower rate of delivery. And Christmas stamps will remain at 65 cents for the time being.

The introduction of the split-tier system is the result of pleas from Australia Post to the government to help stem its business losses. Communications Minister, Malcolm Turnbull has overseen the process of the new legislation and, on sensing the unpopularity of the priority service with some, has introduced a change to the new priority post. Mr Turnbull had originally stated that priority post was a commercial product and would have no pricing constraints. However, the Australian Competition and Consumer Commission (ACCC) must now approve any price increases that are above 1.5 times the cost of ordinary post.

A commencement date for the new pricing system has still to be announced.

Do you still use ‘snail’ mail? Do you think it’s fair that you will have to pay more for a slower mail service?

Read more at The Age