Australia Post has formally lodged a proposal to increase the price of basic postage stamps, less than a year after implementing its previous price rise, as the national postal service contends with what it describes as a "structural decline."
Proposed Stamp Price Increase Details
The national postal provider has submitted a draft Price Notification to the Australian Competition and Consumer Commission (ACCC), outlining plans to raise the Basic Postage Rate from $1.70 to $1.85. This increase is scheduled to take effect from mid-to-late 2026.
This move follows a previous stamp price hike in July, when the cost of a basic stamp rose from $1.50 to $1.70. The proposed additional 15-cent increase represents the second such adjustment in under twelve months.
Rationale Behind the Price Adjustment
Australia Post states that the proposed increase is necessary to help offset ongoing losses within its letters service, as more Australian households and businesses transition away from traditional mail toward digital alternatives.
Group chief executive officer and managing director Paul Graham emphasized that the price change addresses the growing disparity between declining letter usage and the costs associated with maintaining the national letters service.
"As letter volumes continue to fall as customers increasingly take up digital options, Australia Post needs to ensure the letters service remains sustainable now and into the future," Graham stated.
"The proposed increase is one of the ways we are responsibly addressing our financial challenges so we can keep serving our customers and communities."
Challenges Facing the Postal Service
Australia Post reports that fewer than three per cent of letters are currently sent by individuals in Australia, with the majority of mail originating from businesses and government agencies.
The service remains in structural decline, with letter volumes dropping a further 11.7 per cent in 2025 and now reaching levels not seen since the late 1930s. Australia Post reported a substantial $230.4 million loss in the last financial year.
Graham noted that the need for change is also driven by the requirement to deliver to a growing number of addresses across Australia each year, even as overall mail volumes continue their steady decline.
Impact on Australian Households
Australia Post estimates that the average cost impact to Australian households from the proposed price increase will be less than $1 extra per year.
The postal service has confirmed that pricing for concession stamps and seasonal greeting stamps is not expected to change, with these stamps remaining at 60 cents and 65 cents respectively.
Furthermore, Australia Post has recently increased the number of concession stamps eligible customers can purchase annually, raising the limit from 50 to 75 stamps per year. Pricing for these concession stamps has remained unchanged since their introduction over a decade ago.
Strategic Shifts and Operational Changes
As traditional letter volumes decline, Australia Post has increasingly focused its resources on the postage and delivery of packages. The service has recently invested in 500 new sustainable electric delivery bikes, each reportedly offering a 400 per cent increase in parcel capacity compared to previous models.
This strategic shift comes alongside the closure of several post office shops that were recording significant financial losses, reflecting the broader transformation occurring within the national postal service as it adapts to changing consumer behaviors and market conditions.
