Yahoo Finance Australia Post wants to hike stamp prices by 10%
The cost of sending something through the mail could be set to rise by 10 per cent in a bid to keep post offices open.
Australia Post has asked the ACCC to assess a proposal to raise the basic postage rate from $1 to $1.10 to be effective from January 2020.
For average households that sends letters regularly, Australia Post estimates the increase would set families back less than $1.50 a year.
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The price hike is aimed at keeping Australia Post’s regional and rural network running and keep postmen delivering letters five days a week, according to a statement by Australia Post.
“It doesn’t matter if they have one letter or 100 for the address, they still need to drive past the letterbox each day,” said Australia Post group CEO Christine Holgate.
Australia Post’s letters business lost $190 million last year, Holgate added, and that was off the back of “significant efficiency savings”.
The last time the basic postage rate was raised was January 2016.
But since then, the general retail industry award has risen by 13 per cent, as well as “many of Australia Post’s other costs,” the statement said.
“It is important that we responsibly address pricing if we are to protect this important service and keep our network of community post offices open,” Holgate added.
The cost of concession stamps will remain unchanged at 60 cents, seasonal greeting card stamps at 65 cents, and priority labels will remain at 50 cents.
The price increase will go ahead so long as it is approved by the ACCC or the Minister for Communications.
What impact will this have on consumers?
An increase of ten per cent might raise some eyebrows, but Finder consumer communications lead Sabine Leroy said the 10 cent increase wouldn’t hurt.
“We’re increasingly communicating via digital platforms over snail mail, so a 10c increase isn’t going to break the bank,” she told Yahoo Finance.
“Digital birthday cards, Instagram stories and texts have well and truly replaced the humble birthday card we’d receive in the mail.
“A lot of businesses will generally have the postage covered if they are expecting a reply or return of information via mail.”
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