Australia Post has submitted a formal price notification to the Australian Competition and Consumer Commission (ACCC), seeking approval to raise the basic postage rate for ordinary letters from $1.20 to $1.50. The proposed increase is its first since January 2023 and comes in response to continued declines in mail volumes and rising costs across delivery operations. If approved, the new rates would take effect in early 2026 and apply to reserved ordinary letter services, including small and large letters delivered through the standard timetable.
In its application, Australia Post cited the ongoing financial strain caused by falling letter volumes, which have dropped nearly 70 percent since their peak in 2008. Despite significant operational reforms, the mail division remains loss-making, placing pressure on the broader business to support the cost of maintaining a nationwide delivery network. The proposed price adjustments aim to help offset losses while enabling continued investment in infrastructure and delivery service obligations, including the universal service mandate.
The ACCC did not objected to the proposed 13.3 per cent price increase, to take effect in July 2025, for its reserved ordinary letter service delivered to the regular timetable.
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