The cost of sending a letter in Australia is set to increase, following the Australian Competition and Consumer Commission’s (ACCC) approval of a 13.3% price hike. This will see the price of stamps for ordinary small letters rise from $1.50 to $1.70. The increase reflects the declining use of traditional mail, with the ACCC citing evidence that Australia Post’s letter operations are generating less revenue than the costs to run them.
Stamps for ordinary large letters between 125 and 250 grams will go up from $4.50 to $5.10, while those for large letters lighter than 125g will push from $3.00 to $3.40. Despite the rises, discount rates for charities will remain.
The decision is now before Communications Minister Anika Wells, who has the final say on the change. If approved, the new prices will come into effect on July 17. ACCC Commissioner Anna Brakey suggested that Australia Post look into solutions to ease any affordability issues for businesses that require them to send physical mail.
Australia Post claims letter volumes have plummeted to levels last seen in the 1950s. Even with the price increase, Australians will continue to pay less than the current median price of $1.93 for a small letter across OECD post services.
While the postal service is reportedly losing on letter delivery, it has gained significant ground in parcel deliveries due to the growth in online shopping.
Source: https://www.theguardian.com/australia-news/2025/jun/23/australia-post-stamp-price-increase-letters-cost-accc
