Australians are likely to spend more to send a letter, after the competition watchdog announced an increase in the price of stamps.
From April 3, stamp prices will increase by as much as 25 percent, raising the price of a regular lowercase stamp from $1.20 to $1.50, after the Australian Competition and Consumer Commission said it would not oppose the change .
The price for sending regular large letters weighing less than 125 grams will increase from $2.40 to $3.00, and large letters weighing between 125 and 250 grams will cost $4.50, an increase of $3, 60.
However, concession card holders will be spared, with the price frozen at 60 cents, while the cost of sending Christmas cards will also remain at 65 cents.
The ACCC’s decision follows a months-long consultation process after Australia Post originally proposed the price change in August 2023 amid falling letter volumes.
The cost of stamps will rise by as much as 25 percent from April 3 after the competition watchdog confirmed it would not oppose the increase (stock image)
But even as the competition regulator tacitly approved the price increase, it noted that consumers who regularly sent letters would suffer adverse consequences.
“We recognize the concerns raised during our consultation processes about the impact of the price increase on consumers and businesses, particularly in light of pressures on the cost of living,” ACCC Commissioner Anna Brakey noted.
Australia Post welcomed the determination, saying the $1.50 price increase would cost the average household an extra $4.50 a year.
“Australian households receive on average just two letters a week and the number of letters is expected to halve over the next five years,” the postal service said in a statement.
“Charities will continue to be able to access our deeply discounted Charity Mail service, while business and government customers, who send more than 95 percent of all mail in Australia, can access a wide range of discounted services.”
It comes just months after Australia Post decided it would begin phasing out daily letter deliveries as the number of letters delivered plummets (stock image)
In results published by Australia Post earlier this month, the service reported a half-year profit of $33.6 million, up from $10 million in the same period in 2022.
The result was helped by the delivery of a record number of parcels, which rose to almost 100 million in the summer, but the service’s letters business continued to lose profits, reporting a loss of $182 million, while the number of letters sent fell by 12 percent . in as many months.
Had there not been an earlier 10-cent increase in the price of stamps, which came into effect in January 2023, the division would have reported a further decline in sales of $90 million.