Stamp price rise locked in: Aussies to pay more as letter volumes plunge to 1950s levels
The Australian Competition and Consumer Commission (ACCC) issued its final view, stating it 'has no objection' to the price rise, paving the way for the Basic Postage Rate (BPR) to increase from $1.50 to $1.70 on July 17, 2025.
'The BPR increase will help us address the rising cost of delivering letters,' Australia Post said in a statement.
The price increase follows a 10.6 per cent drop in letter volumes during the first half of 2025 alone, resulting in an $83.7 million loss for the postal giant's letter division, Australia Post confirmed.
Once a core service, personal mail has been all but replaced by digital communication, with around 97 per cent of all letters now sent by government or business entities.
The average household receives just two letters per week, and letter volumes are projected to halve again within five years, Australia Post said.
'Letter volumes are now at levels not seen since the 1950s,' Australia Post noted.
Despite these trends, the postal service is required to maintain a national delivery network.
More than 200,000 new delivery points are added every year, even as demand dwindles, Australia Post said.
What it means for Australians
For most Australians, the impact will be small.
Households typically purchase just five to six full-rate stamps per year, meaning the increase will cost an extra $1.20 annually on average.
To soften the blow amid cost-of-living pressures, concession and seasonal greeting stamps will remain unchanged at 60 and 65 cents, respectively.
Charities will also retain access to discounted rates.
Self-funded enterprise under pressure
Australia Post stressed it remains a self-funded government business enterprise, meaning it receives no direct government funding and must cover its costs through revenue alone.
'We are focused on addressing our financial challenges in a responsible way, so we can continue delivering essential services to communities across Australia,' the postal service said.
The ACCC, while giving the tick of approval to the July increase, noted that even with the 20-cent rise, Australia Post is unlikely to fully recover its losses in the letters business.
The Commission has urged the organisation to improve its forecasting, cost modelling, and regulatory reporting in future pricing proposals, citing its monopoly over reserved letter services and the need for financial discipline in the absence of market competition.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
20 minutes ago
- Sydney Morning Herald
The investment you need to teach your kids about
It's often said that parents can help their children get an early understanding of investing by buying shares that they can track to gain an appreciation of wealth creation and the basics of the sharemarket. It's part of the same school of thought that encourages parents or grandparents to invest in cash accounts on behalf of children to give them a head start in life plus some early money lessons. But bonds are another potential investment alternative for children – and today they are much more accessible to the average population. In essence, bonds offer the potential for higher returns compared with cash. Credit: Dionne Gain The global bond market is, in fact, 22 per cent bigger than global sharemarkets. Its importance in diversified portfolios is highlighted by the fact that big super funds hold large allocations to bonds in most of their investment options. What makes these investments appealing to investors, and how can they contribute to establishing a robust financial future for young Australians? In essence, bonds offer the potential for higher returns compared with cash while generally presenting lower risk than equities. Examples include government, treasury, corporate, and municipal bonds. A government bond, for example, might raise money to fund projects or to build infrastructure. A corporate bond is instead issued by a company and the money used to help fund initiatives that will develop its business. An investor in a bond essentially lends their money to the issuer to complete these activities and receives the interest payment – or 'coupon' – for doing so. The asset class essentially aims to provide predictable income without too many ups and downs in capital value. This may make it a suitable long-term holding for the type of activities that resonate with parents and children – such as funding education, first-home deposits, gap years, holidays or just building savings from a child's own efforts. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. Importantly for younger Australians, investing in bonds provides an excellent opportunity for parents to teach their children smart money lessons such as the value of consistency and the benefits of a long-term mindset. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. What's more, this hands-on experience with bonds can boost a child's financial confidence and provide the perfect springboard for understanding more complex investments down the track. It's a much gentler – and safer – introduction to the financial world than the often wild ride of cryptocurrencies or speculative stocks. Of course, no investment is risk-free. Rising interest rates, inflation and the potential for issuers to default on payments to investors are among the biggest risks in fixed income.
The Age
20 minutes ago
- The Age
The investment you need to teach your kids about
It's often said that parents can help their children get an early understanding of investing by buying shares that they can track to gain an appreciation of wealth creation and the basics of the sharemarket. It's part of the same school of thought that encourages parents or grandparents to invest in cash accounts on behalf of children to give them a head start in life plus some early money lessons. But bonds are another potential investment alternative for children – and today they are much more accessible to the average population. In essence, bonds offer the potential for higher returns compared with cash. Credit: Dionne Gain The global bond market is, in fact, 22 per cent bigger than global sharemarkets. Its importance in diversified portfolios is highlighted by the fact that big super funds hold large allocations to bonds in most of their investment options. What makes these investments appealing to investors, and how can they contribute to establishing a robust financial future for young Australians? In essence, bonds offer the potential for higher returns compared with cash while generally presenting lower risk than equities. Examples include government, treasury, corporate, and municipal bonds. A government bond, for example, might raise money to fund projects or to build infrastructure. A corporate bond is instead issued by a company and the money used to help fund initiatives that will develop its business. An investor in a bond essentially lends their money to the issuer to complete these activities and receives the interest payment – or 'coupon' – for doing so. The asset class essentially aims to provide predictable income without too many ups and downs in capital value. This may make it a suitable long-term holding for the type of activities that resonate with parents and children – such as funding education, first-home deposits, gap years, holidays or just building savings from a child's own efforts. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. Importantly for younger Australians, investing in bonds provides an excellent opportunity for parents to teach their children smart money lessons such as the value of consistency and the benefits of a long-term mindset. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. What's more, this hands-on experience with bonds can boost a child's financial confidence and provide the perfect springboard for understanding more complex investments down the track. It's a much gentler – and safer – introduction to the financial world than the often wild ride of cryptocurrencies or speculative stocks. Of course, no investment is risk-free. Rising interest rates, inflation and the potential for issuers to default on payments to investors are among the biggest risks in fixed income.
Perth Now
20 minutes ago
- Perth Now
Hidden cost set to slash inheritance hopes
Younger Australians are over-estimating their inheritance as cost-of-living and stagnant wages means they need more than older Australians will be able to give them. New data released by Colonial First State shows Australians aged between 18 and 29 expect to inherit a whopping $525,000 on average, when the family home and leftover super is factored in. These high expectations come as younger Australians look to the older generations to help secure their financial future. Young Australians are expecting $525k in inheritance. NewsWire / Nicholas Eagar Credit: NewsWire But a combination of rising aged care costs, changing government regulations in the space and the sheer longevity of older people means this optimism around how much they will inherit is 'misplaced.' CFS head of technical services Craig Day warned these high inheritance expectations will come 'under pressure'. 'When you think about what older Australians are staring down the barrel of including longevity and rising aged care cost, this ($525,000) expectation is going to come under a lot of pressure,' he told NewsWire. 'A lot of the assets that are earmarked to be paid out as an inheritance may in the future be needed elsewhere.' CFS says most older Australians intend to leave something behind, but many underestimate just how much they will have left. The family home, vehicles and any remaining superannuation top the list to be passed down to the kids, but investment portfolios and other property have largely been earmarked for retirement income. CFS chief executive of superannuation Kelly Power said young Australians also need the money. 'Young people are increasingly relying on the wealth of their parents or grandparents due to rising living costs, stagnant wage growth and housing pressures,' she said. 'At the same time, older generations are navigating the complexities of retirement planning. 'They want to support their families while ensuring their own financial security. Australians are urged to chat with family to align on inheritance. Christian Gilles / NewsWire Credit: News Corp Australia Mr Day urged older and younger Australians to openly talk about their financial futures. 'It's important that young and old can discuss their expectations and plans openly. By having these conversations early, families can ensure that everyone is on the same page and can make informed decisions that align with their values and goals,' he said. 'It's why we're saying it's really important for families to have these conversations so they don't get to the point where it's oh bugger, I was expecting this much to pay off my mortgage before I started saving for my retirement but there's not much left.' Mr Day also said younger Australians should look at their retirement needs as early as possible, even though 'the realities of life' including cost of living pressures can make it harder to think long-term. 'It's never too early to start planning for retirement,' he said. 'The sooner you plan, the easier it becomes because you get the benefit of that compounding big snowball rolling and it helps you achieve your objectives sooner.'
