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.
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