Stamp prices to soar after tick of approval

Australians are set to spend more to send a letter after the competition watchdog waved through a hike to the price of stamps.

From April 3, stamp prices are set to be hiked by as much as 25 per cent, increasing the price of an ordinary small letter stamp from $1.20 to $1.50 after the Australian Competition and Consumer Commission said it would not oppose the change.

The price of sending ordinary large letters weighing less than 125g will jump from $2.40 to $3.00, and large letters weighing between 125 and 250g will cost $4.50, up from $3.60.

However, concession card holders will be spared, with the price to be 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 originally proposed the price change in August 2023 amid plunging letter volumes.

But even as the competition regulator tacitly approved the price hike, it did note consumers who frequently sent letters would be adversely affected.

“We acknowledge the concerns raised in our consultation processes about the impact of the price increase on consumers and businesses, especially in light of cost-of-living pressures,” ACCC commissioner Anna Brakey noted.

Welcoming the determination, Australia Post said the $1.50 price hike would cost the average household an additional $4.50 per year.

“Australian households only receive two letters on average each week and letter volumes are expected to halve in the next five years,” the postal service said in a statement.

“Charities will continue to be able to access our heavily discounted Charity Mail service, while business and government customers, who send more than 95 per cent of all mail in Australia, can access a broad range of discounted services.”

In results released by Australia Post earlier this month, the service reported a half-year profit of $33.6m, up from $10m recorded over the same period in 2022.

The result was buoyed by the delivery of a record number of parcels, which climbed to almost 100 million over summer, but the service’s letter business continued to haemorrhage profits, reporting a loss of $182m, as the number of letters sent fell 12 per cent in as many months.

Had it not been for a previous 10c increase in the price of stamps that took effect in January 2023, the division would have reported a further $90m reduction in revenue.