Australian Postal Service Flags Another Price Increase, This Time for Stamps

Australia Post is moving to raise the price of postal services from mid-2026, arguing falling letter volumes and rising delivery costs are driving losses in its letters service.

Under a draft price notification lodged with the Australian Competition and Consumer Commission (ACCC) on Feb. 13, the basic postage rate for a small letter would rise from $1.70 (US$1.21) to $1.85.

The cost of large letters up to 125 grams would increase from $3.40 to $3.70, while letters between 125 and 250 grams would rise from $5.10 to $5.55.

Australia Post is also signalling a price increase from mid-2026 for some of its reserved letter services, covering priority labels and business products like PreSort and Print Post.

According to the company, fewer than three percent of letters are now sent by individuals, with most mail posted by businesses and government agencies.

It also argued the average cost of stamps would cost households $1 extra per year.

“Australia would still have one of the lowest stamp prices in the OECD,” the company said.

Falling Volumes Drive Price Rise

Australia Post said the letters service was in structural decline, with overall volumes (excluding elections) dropping 11.7 percent in the 2025 financial year to levels not seen since the late 1930s.

The government-owned enterprise recorded a $230.4 million loss in the last financial year despite the 2025 federal election.

Group CEO Paul Graham said the proposal was aimed at narrowing the gap between declining usage and the cost of maintaining nationwide delivery.

“As letter volumes continue to fall as customers increasingly take up digital options, Australia Post needs to ensure the letters service remains sustainable now and into the future,” he said in a statement.

Graham noted that Australia Post also faced cost increases from the larger number of homes around the country it has to deliver to, even as letter volumes drop.

ACCC Calls for Public Feedback

The ACCC has opened up public consultation on the proposed price increase, which must be assessed under the Competition and Consumer Act.

“The feedback we receive will help inform our consideration of Australia Post’s proposal, with a preliminary view to be released in the coming months,” ACCC Commissioner Anna Brakey said.

The ACCC does not approve stamp price rises under the price notification framework, but it can object to a proposal.

The final decision rests with the Minister for Communications Anika Wells, who has the power to reject an increase.

Concession Stamps Stay Unchanged

Meanwhile, Australia Post is not proposing to lift the price of concession stamps, which will remain at 60 cents, or seasonal greeting card stamps, which will stay at 65 cents.

“These prices have not increased since they were launched more than 10 years ago,” it said.

In the longer term, Australia Post has flagged possible price hikes for postal services beyond 2026, including proposed 20-cent increases to the basic postage rate in 2027 and 2028, though these future prices are not part of the current ACCC assessment.