Australia Post Seeks Stamp Price Hike Amidst Declining Letter Volumes
Australia Post is proposing a significant increase to the price of standard postage stamps, a move driven by a dramatic slump in letter volumes that has pushed the service to its lowest point in nearly 90 years. The postal giant reported a substantial $230 million loss in its letters division for the last financial year, prompting the need for a price adjustment to ensure the sustainability of this essential service.
The proposed change, lodged with the Australian Competition and Consumer Commission (ACCC), would see the price of a basic postage stamp rise from the current $1.70 to $1.85. This adjustment is slated to take effect in mid-to-late 2026. Importantly, Australia Post has indicated that the prices for concession stamps and seasonal greeting stamps will remain unchanged, continuing at their current rates of 60 cents and 65 cents, respectively.
Australia Post’s own figures highlight the stark reality of declining letter usage. According to a statement from the organisation, fewer than 3 per cent of all letters are now sent by individuals. The overwhelming majority of mail is dispatched by government agencies and businesses, a shift that has fundamentally altered the landscape of postal services.
“Australia Post’s letters service remains in structural decline, with volumes dropping a further 11.7 per cent in FY25 (excluding election activities) and is now at levels not seen since the late 1930s,” the statement read.
Even when factoring in the temporary surge in mail associated with election activities, the letters service still incurred a considerable deficit. “Even with the contribution of elections, the letters service still reported a $230.4m loss in FY25.”
Group chief executive and managing director Paul Graham emphasised the necessity of the proposed price increase, citing the growing disparity between the dwindling use of letters and the ongoing costs associated with maintaining a nationwide postal network.
“As letter volumes continue to fall as customers increasingly take up digital options, Australia Post needs to ensure the letters service remains sustainable now and into the future,” Mr Graham stated. “The proposed increase is one of the ways we are responsibly addressing our financial challenges so we can keep serving our customers and communities.”
Australia Post is keen to reassure the public about the impact of this proposed price hike. The organisation estimates that the average annual cost increase for households will be less than $1. Furthermore, Australia is expected to maintain one of the lowest stamp prices among the 38 member states of the Organisation for Economic Co-operation and Development (OECD).
This is not the first time Australia Post has sought an increase in its basic postage rate. The ACCC last approved a price adjustment in June of last year, which saw the cost of a standard stamp climb from $1.50 to $1.70.
During that approval process, ACCC commissioner Anna Brakey acknowledged the potential financial strain on consumers but underscored the financial realities faced by Australia Post. “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,” Ms Brakey had noted.
In response to these considerations, Australia Post subsequently increased the allocation of concession stamps available to eligible customers from 50 to 75 per year. This initiative aims to mitigate the impact of rising costs on those who rely on concession rates for their postal needs. The current proposal signals Australia Post’s continued efforts to adapt to evolving communication habits while striving to maintain a viable and accessible postal service for all Australians.
