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Australia Post proposes 25 per cent price hike

Australia Post has proposed a 25 per cent price hike on its basic postage rate, after recording a $384 million loss.

Before anything is decided, businesses and members of the community have been invited to have their say in a survey, as part of a regulatory consultation.

The changes would come into effect from January 2024 if given the green light.

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For ordinary small letters it would mean a 30 cent increase from $1.20 to $1.50, for ordinary large letters up to 125g, a 60 cent increase would take them from $2.40 to $3.

For ordinary large letters between 125g and 250g, a 90 cent increase means they would increase from $3.60 to $4.50.

The price of 60 cent concession stamps and 65 cent seasonal greeting card stamps would not change under the proposed price hike, and have not changed in almost a decade, Australia Post said.

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“The average household sends about 15 letters a year and, if implemented, the proposed increase would cost about $4.50 extra a year,” Australia Post said.

Australia Post Group CEO and managing director Paul Graham said: “Letter volumes continued to decline, and we expect them to halve in the next five years.”

However, the business delivered to about 200,000 new postal round delivery points in the last financial year, and said it needs to become financially sustainable to continue to be accessible to all Australians.

Any price hike by the national service must first pass through the Australian Competition & Consumer Commission (ACCC), which has invited members of the community to have their say as part of a community consultation which closes on September 29.

The ACCC will take the community’s responses into account along with the Australia Post’s cost considerations when deciding whether to reject or accept its proposal.

The cost of basic postage could increase by 25 per cent next year if the Australia Post price proposal is approved by the ACCC. Credit: AAP

“We would like to hear from consumers, businesses and other stakeholders about their views on Australia Post’s proposed price increase,” ACCC Commissioner Anna Brakey said.

“We will then examine the information provided by Australia Post and the feedback received in the context of our role under the legislation.”

The ACCC decided last year not to object to Australia Post’s last price basic postage rate increase of 9.1 per cent in 2022, which came into effect in January this year.

Australia Post outlined its struggles and obligations to justify the new proposed increase in documents available to read at the consultation survey site on the ACCC website here.

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