AusPost letter stamp prices likely to spike as major change gets pass from consumer watchdog

Sky News AU

5 days ago

Australia Post stamp prices could rise significantly from next month, with the country's consumer watchdog deciding not to oppose major changes.
AusPost has proposed a price increase of 13.3 per cent for its basic postage rate, which includes standard small and large letters.
The shift would see the rate for sending ordinary small letters rise from $3 to $3.40, while the price for large letters, which are those between 125 to 250 grams, would go from $4.50 to $5.10.
The Australian Competition and Consumer Commission (ACCC) has decided not to oppose the changes, which will come into effect from July 17 if Minister for Communications Anika Wells does not reject the move, a statement on Monday from the consumer watchdog said.
Prices for seasonal greeting card and concession stamps will not be raised under the move, the statement said.
ACCC Commissioner Anna Brakey has said AusPost's submission signaled that its standard letter posting service is currently running at a loss.
'We understand that these price increases will mean extra costs for consumers,' Ms Brakey said.
'However, our decision to not object to Australia Post's proposed price increase is based on evidence that the costs to Australia Post of providing the letter service are greater than the revenue it produces."
AusPost's submission to ACCC outlined that its letters side of the business is 'in decline', wtith AusPost currently delivering on average just two letters to every Australian household every week.
Ms Brakey said the ACCC's decision has recommended that AusPost look into how it can 'alleviate affordability issues for businesses'.
'Further we made recommendations to address a number of other concerns expressed by stakeholders during consultation,' Ms Brakey said.
'We are especially mindful of the impact price changes can have on vulnerable Australians, and so our decision paper recommends that Australia Post increases the number of concession stamps per customer, which is currently capped at 50 per year.'
AusPost chief executive Paul Graham said in February the postal business is 'dramatically changing' with the growth of parcel deliveries and ecommerce.
'We're seeing the ongoing decline in mail, we're seeing the ongoing decline in over-the-counter services – be that bill pay or other things that we do,' he said.