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Australians are expected to spend more to send a letter after the competition watchdog announced a hike in the price of stamps.
From April 3, stamp prices are set to rise by up to 25 per cent, increasing the price of a regular letter stamp from $1.20 to $1.50 after the Australian Competition and Protection Commission Consumer Affairs said it would not oppose the change.
The price of sending regular large letters weighing less than 125 g will increase from $2.40 to $3.00, and large letters weighing between 125 and 250 g will cost $4.50, up from $3.60.
However, concession card holders will be spared, with the price frozen at 60c, while the cost of sending Christmas cards will also remain at 65c.
The ACCC’s decision follows a months-long consultation process after Australia Post initially proposed the price change in August 2023 amid falling letter volumes.
The price of postage stamps is set to rise by up to 25 percent from April 3 after the competition watchdog confirmed it would not oppose the increase (stock image)
But even though the competition regulator tacitly approved the price hike, it nonetheless noted that consumers who frequently sent letters would be negatively affected.
“We recognize the concerns raised during our consultation processes regarding the impact of rising prices on consumers and businesses, particularly in light of cost of living pressures,” noted the EU Commissioner. ‘ACCC, Anna Brakey.
Welcoming the move, Australia Post said the $1.50 price rise would cost the average household $4.50 more per year.
“Australian households receive an average of just two letters per week and the volume 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 Charity Mail service at a discounted price, while business and government customers, who send more than 95 per cent of all mail in Australia, will be able to access a wide range of services at a discounted price .”
It comes just months after Australia Post decided to start phasing out daily letter deliveries as the number of letters delivered falls (stock image)
In results released by Australia Post earlier this month, the service reported a half-year profit of $33.6 million, compared to $10 million recorded over the same period in 2022.
This result was supported by the delivery of a record number of parcels, which soared to almost 100 million over the summer, but the service’s mail business continued to hemorrhage profits, recording a loss of $182 million as the number of letters sent fell by 12 percent. in as many months.
Without a previous 10-cent increase in stamp prices that took effect in January 2023, the division would have reported an additional $90 million reduction in revenue.