The ACCC has not objected to Australia Post's proposed 13.3 per cent price increase, to take effect in July 2025, for its reserved ordinary letter service delivered to the regular timetable.
Unless the Minister For Communications disapproves the proposed increase, the price for ordinary small letters - known as the basic postage rate - will increase from $1.50 to $1.70. Prices for ordinary large letters up to 125g will increase from $3.00 to $3.40, and ordinary large letters between 125 and 250 grams will rise from $4.50 to $5.10.
The price of concession stamps ($3 for five) and stamps for seasonal greeting cards (65 cents) will not change.
"We understand that these price increases will mean extra costs for consumers. 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," ACCC Commissioner Anna Brakey said.
Australia Post's letter services - including its reserved services - have incurred significant losses in recent years, which Australia Post attributes primarily to the ongoing reduction in letter volumes combined with an increase in delivery points.
Australia Post has submitted that its letters business is in decline, which is consistent with a trend occurring across postal services globally. Currently, Australia Post only delivers around two letters to each household per week and expects reserved letter volumes to continue to decrease by around 10.6 per cent annually until 2027-28.
As outlined in the ACCC's April 2025 preliminary view on Australia Post's draft proposal, the ACCC found that that Australia Post is unlikely to recover revenue in excess of its costs for reserved postal services, even with the proposed price increase.
The ACCC's final decision was formed in line with its role for postal services, and follows a public consultation process on the preliminary view.
"Our final decision recommends Australia Post examine ways to alleviate affordability issues for businesses, including those subject to requirements to send physical mail. 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."
The bulk of the recommendations made by the ACCC are designed to improve the quality of information provided by Australia Post in support of its price notification submissions - particularly in relation to forecast data and Australia Post's cost allocation model.
"While Australia Post has been working constructively with the ACCC on these recommendations, in most instances, we expect full implementation to be reached, so that we can conduct rigorous cost-based assessments going forward," Ms Brakey said.
"As there are many businesses in Australia that still rely on sending letters, it is crucial that Australia Post has a transparent dialogue with these customers so they are aware of potential pricing changes well ahead of time."
Australia Post's proposed price of $1.70 for a single postage stamp is below the current median price of $1.93 among OECD postal service operators.
The ACCC does not approve or reject notified letter price changes - only the Minister for Communications has the power to reject a stamp price increase.
The final decision paper and an accompanying fact sheet are available on the ACCC website.
Background
Australia Post's proposed price change was outlined in a draft price notification provided to the ACCC in November 2024, and confirmed in a formal price notification submitted in June 2025.
Under the Competition and Consumer Act, the ACCC is responsible for assessing proposed price increases by Australia Post for its reserved ordinary letter services delivered to the regular timetable. These are services for which Australia Post holds a statutory monopoly and are declared as 'notified services' for the purposes of Part VIIA of the Act.
The ACCC must consider Australia Post's proposed price increases for notified services, and may decide to:
- not object to the price increase
- not object to a price that is less than that proposed, or
- object to the price increase.
The price notification framework does not allow the ACCC to set stamp prices. The ACCC's role does not include binding decision-making powers, nor broader controls to regulate Australia Post's service standards.
Only the Minister for Communications has the power to reject a price increase proposed by Australia Post. Unless the current price notification is disapproved by the Minister within 30 days of receipt, Australia Post is expected to increase notified letter prices from 17 July 2025.
