Australia Post delivers a price hike to send letters after 'significant losses'
The cost of sending a basic letter is set to rise 20 cents to $1.70 from July 17 after the ACCC decided not to oppose an increase.
The consumer watchdog acknowledged Post's "significant losses" in the hundreds of millions from its letter business to tick off a proposed 13.3 per cent increase.
The price to send ordinary large letters up to 125g will increase 40 cents to $3.40, and ordinary large letters between 125 and 250 grams will rise 60 cents to $5.10.
In the draft price notification, Australia Post said it generated a loss of $361.8 million on its letter business, despite modernisation improvements and the previous price increase of 25 per cent in 2024.
ACCC commissioner Anna Brakey said they understood the increase would mean extra costs for consumers.
"Australia Post's proposed price increase is based on evidence that the costs to Australia Post of providing the letter service are greater than the revenue it produces," Ms Brakey said.
It was "crucial" for the postal service to have transparent dialogue with businesses that relied on or were required to send physical mail.
There would be no change to the price of concession stamps, $3 for five and stamps for seasonal greeting cards, 65 cents.
Ms Brakey said the ACCC was mindful of how the increase would affect vulnerable Australians and they recommended an increase to the annual number of concession stamps per customer from the current 50.
Australia Post said letter volumes were now at a level not seen since the 1950s, with household only receiving two letters per week and expected to halve in the next five years.
Federal communications minister Anika Wells has 30 days to reject the proposed increase before it takes effect.
READ MORE: Dog deterrent spray rolling out to all posties after increasing attacks
The cost of sending a basic letter is set to rise 20 cents to $1.70 from July 17 after the ACCC decided not to oppose an increase.
The consumer watchdog acknowledged Post's "significant losses" in the hundreds of millions from its letter business to tick off a proposed 13.3 per cent increase.
The price to send ordinary large letters up to 125g will increase 40 cents to $3.40, and ordinary large letters between 125 and 250 grams will rise 60 cents to $5.10.
In the draft price notification, Australia Post said it generated a loss of $361.8 million on its letter business, despite modernisation improvements and the previous price increase of 25 per cent in 2024.
ACCC commissioner Anna Brakey said they understood the increase would mean extra costs for consumers.
"Australia Post's proposed price increase is based on evidence that the costs to Australia Post of providing the letter service are greater than the revenue it produces," Ms Brakey said.
It was "crucial" for the postal service to have transparent dialogue with businesses that relied on or were required to send physical mail.
There would be no change to the price of concession stamps, $3 for five and stamps for seasonal greeting cards, 65 cents.
Ms Brakey said the ACCC was mindful of how the increase would affect vulnerable Australians and they recommended an increase to the annual number of concession stamps per customer from the current 50.
Australia Post said letter volumes were now at a level not seen since the 1950s, with household only receiving two letters per week and expected to halve in the next five years.
Federal communications minister Anika Wells has 30 days to reject the proposed increase before it takes effect.
READ MORE: Dog deterrent spray rolling out to all posties after increasing attacks
The cost of sending a basic letter is set to rise 20 cents to $1.70 from July 17 after the ACCC decided not to oppose an increase.
The consumer watchdog acknowledged Post's "significant losses" in the hundreds of millions from its letter business to tick off a proposed 13.3 per cent increase.
The price to send ordinary large letters up to 125g will increase 40 cents to $3.40, and ordinary large letters between 125 and 250 grams will rise 60 cents to $5.10.
In the draft price notification, Australia Post said it generated a loss of $361.8 million on its letter business, despite modernisation improvements and the previous price increase of 25 per cent in 2024.
ACCC commissioner Anna Brakey said they understood the increase would mean extra costs for consumers.
"Australia Post's proposed price increase is based on evidence that the costs to Australia Post of providing the letter service are greater than the revenue it produces," Ms Brakey said.
It was "crucial" for the postal service to have transparent dialogue with businesses that relied on or were required to send physical mail.
There would be no change to the price of concession stamps, $3 for five and stamps for seasonal greeting cards, 65 cents.
Ms Brakey said the ACCC was mindful of how the increase would affect vulnerable Australians and they recommended an increase to the annual number of concession stamps per customer from the current 50.
Australia Post said letter volumes were now at a level not seen since the 1950s, with household only receiving two letters per week and expected to halve in the next five years.
Federal communications minister Anika Wells has 30 days to reject the proposed increase before it takes effect.
READ MORE: Dog deterrent spray rolling out to all posties after increasing attacks
The cost of sending a basic letter is set to rise 20 cents to $1.70 from July 17 after the ACCC decided not to oppose an increase.
The consumer watchdog acknowledged Post's "significant losses" in the hundreds of millions from its letter business to tick off a proposed 13.3 per cent increase.
The price to send ordinary large letters up to 125g will increase 40 cents to $3.40, and ordinary large letters between 125 and 250 grams will rise 60 cents to $5.10.
In the draft price notification, Australia Post said it generated a loss of $361.8 million on its letter business, despite modernisation improvements and the previous price increase of 25 per cent in 2024.
ACCC commissioner Anna Brakey said they understood the increase would mean extra costs for consumers.
"Australia Post's proposed price increase is based on evidence that the costs to Australia Post of providing the letter service are greater than the revenue it produces," Ms Brakey said.
It was "crucial" for the postal service to have transparent dialogue with businesses that relied on or were required to send physical mail.
There would be no change to the price of concession stamps, $3 for five and stamps for seasonal greeting cards, 65 cents.
Ms Brakey said the ACCC was mindful of how the increase would affect vulnerable Australians and they recommended an increase to the annual number of concession stamps per customer from the current 50.
Australia Post said letter volumes were now at a level not seen since the 1950s, with household only receiving two letters per week and expected to halve in the next five years.
Federal communications minister Anika Wells has 30 days to reject the proposed increase before it takes effect.
READ MORE: Dog deterrent spray rolling out to all posties after increasing attacks
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Support was highest for the policing of general online marketplaces, like Amazon, Temu and eBay, followed by social networks such as Facebook, Instagram and LinkedIn, and online messaging platforms. The report also recommended the continued monitoring of online services and a permanent Digital Platform Regulators Forum comprised of existing media regulatory bodies to collaborate on streamlined legal reforms. Future areas of concern for the commission included the regulation of digital video games, such as the risk of accidental in-game spending, consumer harm from paid loot-boxes, and clear purchasing contracts. The report also noted concerns about a lack of competition in generative AI services and cloud computing, which could be dominated by firms including Amazon, Microsoft and Google. "Harms to competition in the generative AI sector could hamper innovation, result in lower quality products and services, and force Australian businesses and consumers to pay more than they otherwise would to utilise this technology," Ms Cass-Gottlieb said. The report completes the inquiry called by then-treasurer Josh Frydenberg in February 2020, and the Labor government has since committed to several changes based on its recommendations, including a ban on unfair trading practices. The government's consultation into proposed digital competition changes, including laws to govern app marketplaces, online advertising and social media, closed in February. Australia needs new laws and regulations to prevent significant harm to consumers and businesses from the exploitative practices of US tech giants. 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"While these services have brought many benefits, they have also created harms that our current competition and consumer laws cannot adequately address," she said. "This is why we continue to recommend that targeted regulation of digital platform services is needed to increase competition and innovation and protect consumers in digital markets." Existing recommendations included a ban on unfair trading practices, enforceable codes of conduct for designated digital platforms including competition protections, and mandatory processes to help consumers, including removing scams and harmful apps, verifying advertisers, and introducing a digital ombudsman to handle disputes. A consumer survey conducted for the report found more than eight in 10 Australians supported the introduction of an independent dispute resolution body to handle complaints. 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"Harms to competition in the generative AI sector could hamper innovation, result in lower quality products and services, and force Australian businesses and consumers to pay more than they otherwise would to utilise this technology," Ms Cass-Gottlieb said. The report completes the inquiry called by then-treasurer Josh Frydenberg in February 2020, and the Labor government has since committed to several changes based on its recommendations, including a ban on unfair trading practices. The government's consultation into proposed digital competition changes, including laws to govern app marketplaces, online advertising and social media, closed in February.
Sky News AU
3 hours ago
- Sky News AU
AusPost letter stamp prices likely to spike as major change gets pass from consumer watchdog
Australia Post stamp prices could rise significantly from next month, with the country's consumer watchdog deciding not to oppose major changes. AusPost has proposed a price increase of 13.3 per cent for its basic postage rate, which includes standard small and large letters. The shift would see the rate for sending ordinary small letters rise from $3 to $3.40, while the price for large letters, which are those between 125 to 250 grams, would go from $4.50 to $5.10. The Australian Competition and Consumer Commission (ACCC) has decided not to oppose the changes, which will come into effect from July 17 if Minister for Communications Anika Wells does not reject the move, a statement on Monday from the consumer watchdog said. Prices for seasonal greeting card and concession stamps will not be raised under the move, the statement said. ACCC Commissioner Anna Brakey has said AusPost's submission signaled that its standard letter posting service is currently running at a loss. 'We understand that these price increases will mean extra costs for consumers,' Ms Brakey said. 'However, our decision to not object to Australia Post's proposed price increase is based on evidence that the costs to Australia Post of providing the letter service are greater than the revenue it produces." AusPost's submission to ACCC outlined that its letters side of the business is 'in decline', wtith AusPost currently delivering on average just two letters to every Australian household every week. Ms Brakey said the ACCC's decision has recommended that AusPost look into how it can 'alleviate affordability issues for businesses'. 'Further we made recommendations to address a number of other concerns expressed by stakeholders during consultation,' Ms Brakey said. 'We are especially mindful of the impact price changes can have on vulnerable Australians, and so our decision paper recommends that Australia Post increases the number of concession stamps per customer, which is currently capped at 50 per year.' AusPost chief executive Paul Graham said in February the postal business is 'dramatically changing' with the growth of parcel deliveries and ecommerce. 'We're seeing the ongoing decline in mail, we're seeing the ongoing decline in over-the-counter services – be that bill pay or other things that we do,' he said.
