Cost of sending a letter in Australia to rise to $1.70 as snail mail continues to decline

The Australian Competition and Consumer Commission (ACCC) has approved a significant price increase for sending letters through Australia Post, reflecting the ongoing decline in traditional mail services. This decision allows the cost of stamps for ordinary small letters to rise from $1.50 to $1.70, marking a 13.3% increase. The change is still subject to the approval of the communications minister, Anika Wells, who has the authority to reject the proposed increase. If finalized, these new fees will come into effect on July 17, 2023. ACCC commissioner Anna Brakey indicated that this increase is necessary as Australia Post's letter operations are currently generating less revenue than the costs associated with running them. She emphasized the need for Australia Post to explore options to address affordability concerns, particularly for businesses that rely on sending physical mail to meet their operational requirements.

In addition to the small letter price hike, the new fee structure will also affect large letters. The cost for ordinary large letters weighing between 125 and 250 grams will increase from $4.50 to $5.10, while large letters lighter than 125 grams will see a rise from $3.00 to $3.40. However, charities will continue to receive discounted rates. Australia Post has reported a dramatic decline in letter volumes, reaching levels not seen since the 1950s. A spokesperson noted that the average household purchases only five to six full-rate stamps each year, meaning this increase would only add about $1.20 to their annual expenses. Despite the price increase, Australia Post's rates remain lower than the median price of $1.93 for a small letter among OECD postal service operators. While the postal service is struggling with letter delivery losses, it has experienced growth in parcel delivery, fueled by the increasing popularity of online shopping.