ACCC consults on postage stamp price increases

The news: The ACCC is seeking feedback on Australia Post's plans to lift postage stamp prices by a quarter, as the number of delivery addresses grow and letters sent decline. The ACCC has said it will not object to the increase.

The numbers: Auspost intends to increase the price of stamps from $1.20 to $1.50 for small letter, from $2.40 to $3.00 for large letters up to 125g, and from $3.60 to $4.50 for large letters up to 250g. It has no plans to increase the price of concession stamps or stamps for seasonal greeting cards.

The context: Australia Post reported a $200.3 million pre tax loss in FY23, its first since 2015. The ACCC said the proposed price increase is unlikely to result in AusPost covering the actual cost of providing postal services. The postage carrier forecasts Australian delivery addresses will grow by roughly 200,000 annually, and that the volume of domestic letters delivered will fall 11.3% per year until 2025/26.

What they said: "Australia Post’s ordinary letter delivery remains a crucial national service, however it faces increasing financial pressure in a landscape now dominated by digital forms of communication," ACCC deputy chair Mike Keogh said in a statement.