Postage price bump gets watchdog's stamp of approval
The cost of sending a letter is set to rise as the consumer watchdog waves through a price bump to reflect the decline in snail mail.
The Australian Competition and Consumer Commission approves of the 13.3 per cent price increase, allowing Australia Post to nudge stamps for ordinary small letters up to $1.70 from $1.50.
The final hurdle for the fee change is Communications Minister Anika Wells, who still has an opportunity to reject the change.
If finalised, the new stamp fees will kick in on July 17.
ACCC commissioner Anna Brakey said the call was based on evidence Australia Post's letter operations were bringing in less revenue than the money it was costing to run it.
"Our final decision recommends Australia Post examine ways to alleviate affordability issues for businesses, including those subject to requirements to send physical mail," Ms Brakey said.
Under the fee changes, ordinary large letters between 125 and 250 grams will jump from $4.50 to $5.10.
Stamps for large letters lighter than 125g will tick higher from $3.00 to $3.40.
Charities will still be offered discount rates.
Australia Post says letter volumes have declined to levels not seen since the 1950s.
"The average household purchases five to six full-rate stamps each year and the proposed increase would cost them about $1.20 extra per year," a spokesperson said on Monday.
Even with the price increase, Australians will still be paying less than the current median price of $1.93 for a small letter across OECD postal service operators.
The self-funded government enterprise may be losing money delivering letters, but has benefited from growing appetites for online shopping and parcel delivery.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News AU
22 minutes ago
- Sky News AU
Aussie motorists told to fuel up now as Iran-Israel conflict escalates
Australians are being warned that now is the low point in the petrol cycle and they should fuel up before prices rise in the coming days. With the price of Brent crude oil hitting a three-month high over the weekend as the Israel-Iran conflict escalates, surpassing $US80 a barrel, motorists are being urged to fill up. 'We will start to see the prices increase, but they are nowhere near as high as other economies have predicted,' NRMA spokesman Peter Khoury said. Mr Khoury said while the price of petrol was going up, it was not as much as some motorists feared, with on average drivers likely to pay 8 cents more a litre when fuelling up their car. 'Our regional benchmark – Malaysian Tapis – closed at $77 a barrel and we do expect it to go higher when the markets open tonight,' Mr Khoury said. 'But to put it in perspective, when we saw those really horrible record high prices back when Russia invaded Ukraine, Tapis was trading at $133 a barrel.' Australia motorists' fuel costs are based on Malaysian Tapis crude oil prices. While Tapis crude oil prices are influenced by the same factors as US brent crude oil prices, they do not necessarily trade at the same price. The price of Brent crude oil spiked to $US80 a barrel over the weekend after the US attacked and 'completely obliterated' three nuclear sites in Iran. Traders were worried about two major potential escalations in the conflict, with either the closure of the Strait of Hormuz or an all-out regional war negatively impacting the price of oil. Cutting off the Strait of Hormuz could send the price of oil above $US100 a barrel, as the 32km mile stretch is the primary route of exports from Saudi Arabia, Iraq, the UAE, and Kuwait. But the passage that feeds the world with about 30 per cent of its oil supply is still open, at least for now, pending a final decision by Iran's Supreme Council after Iran's parliament voted to close it. Mr Khoury said it was important that Australians educated themselves before they filled up, with motorists in Sydney facing the bottom of the cycle, while Perth prices are set to fall on Tuesday. 'The reason I say that is because there is always a spread of prices,' he said. 'People are really surprised. We've had people say I thought the prices would be sky high and they are not.' Like an interest rate rise Higher petrol prices could act like an interest rate rise, as Aussies would have to spend more at the pump. Independent economist Saul Eslake said what happened next was unknown, but two scenarios could impact the Australian economy. 'One is the Iranians either choose to or find they can't do anything at all to which oil could fall back relatively quickly,' he said. 'On the other hand if they block the Strait of Hormuz, then the oil price could rise above $US100 a barrel, which while the world doesn't end it gets uncomfortably high.' Mr Eslake said the spike in oil prices was unlikely to move the Reserve Bank of Australia on interest rates in the short term. 'The RBA will look through the initial spike in oil prices, as it gets taken out through trimmed mean inflation rate,' he said. 'In a sense, higher oil prices act like an increase in interest rates; that is, to say people spend more on petrol and (have) less to spend on everything else. It's kind of the same way interest rates work.' Originally published as Aussie motorists told to fuel up now as Iran-Israel conflict escalates
Perth Now
22 minutes ago
- Perth Now
Price hike coming for Australia Post stamps
The price of Australia Post stamps will be hiked next month following approval from the country's consumer watchdog. A stamp for a basic small letter will increase from $1.50 to $1.70, which the Australian Competition and Consumer Commission says is still less than in comparable countries. Across the board, prices are going up a little over 13 per cent. '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,' ACCC commissioner Anna Brakey said. 'We understand that these price increases will mean extra costs for consumers,' she said. However, Australia Post loses money running the national letter service, Ms Brakey said. Following the ACCC's approval, announced Monday, Communications Minister Anika Wells can still reject the price increase. NewsWire has contacted the Minister's office for comment. Delivering letters does not turn a profit for Australia Post. NewsWire / Andrew Henshaw Credit: News Corp Australia Fewer and fewer Australians send and receive letters. In submissions made to the ACCC, Australia Post says each household receives only two letters each week. But the ACCC wants Australia Post to work out ways to make letters cheaper for businesses that are required to send them. '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,' Ms Brakey said. '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. The average price of a single postage stamp in OECD countries is $1.93. From next month, large letters up to 125g will increase from $3.00 to $3.40. Ordinary large letters between 125g and 250g are going up from $4.50 to $5.10. Concession stamps will remain $3 for five stamps, and seasonal greeting cards are staying at 65c.
News.com.au
24 minutes ago
- News.com.au
Consumer watchdog ACCC approves Australia Post stamp price hike
The price of Australia Post stamps will be hiked next month following approval from the country's consumer watchdog. A stamp for a basic small letter will increase from $1.50 to $1.70, which the Australian Competition and Consumer Commission says is still less than in comparable countries. Across the board, prices are going up a little over 13 per cent. '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,' ACCC commissioner Anna Brakey said. 'We understand that these price increases will mean extra costs for consumers,' she said. However, Australia Post loses money running the national letter service, Ms Brakey said. Following the ACCC's approval, announced Monday, Communications Minister Anika Wells can still reject the price increase. NewsWire has contacted the Minister's office for comment. Fewer and fewer Australians send and receive letters. In submissions made to the ACCC, Australia Post says each household receives only two letters each week. But the ACCC wants Australia Post to work out ways to make letters cheaper for businesses that are required to send them. '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,' Ms Brakey said. '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. The average price of a single postage stamp in OECD countries is $1.93. From next month, large letters up to 125g will increase from $3.00 to $3.40. Ordinary large letters between 125g and 250g are going up from $4.50 to $5.10. Concession stamps will remain $3 for five stamps, and seasonal greeting cards are staying at 65c.
