In the digital age, the letter has become a rarity in the age of communication apps and websites.

Yet, for many, particularly seniors, sending a letter or card through the post remains a cherished way of keeping in touch with loved ones.

However, the cost of maintaining this tradition could rise as Australia Post announced a proposal for these services.


The proposed change, which should take effect from 1 July next year, could bump the cost of sending small letters from $1.50 to $1.70.

This move came after Australia Post grappled with significant financial losses in its letters business.

The letter business recorded $361.8 million in losses last financial year.

Letter volumes dropped by 12.9 per cent or 1.76 billion this year—a low not witnessed since the 1950s—indicating the challenges postal services face in an increasingly digital world.


'Australia Post continues to face structural challenges in its letters business that are expected to only get worse,' AusPost's Group Chief Executive Officer and Managing Director Paul Graham stated.

'This proposed increase will primarily impact business and government customers.'

'We remain focused on continuing to deliver for all Australians, especially for communities in rural and regional Australia, but this is only possible if Australia Post is financially sustainable,' Mr Graham added.


For the average household with five to six full-rate stamps yearly, the increase would amount to an additional $1.20 per year.

AusPost also noted that only three per cent of their clients are private individuals, while government agencies and businesses still make up the majority of their clientele.

In consolation, concession and seasonal greeting stamps should remain at 60 cents and 65 cents, respectively.

However, larger letters should see a price hike as well.

An ordinary large letter up to 125 g will increase from $3 to $3.40.
Meanwhile, letters weighing more than 125 g but under 250 g should cost from $4.50 to $5.10.

Additionally, the cost of a priority label could jump from 70 cents to $1, bringing the total cost of sending a priority ordinary small letter from $2.20 to $2.70.


These proposed cost increases were part of a draft notification to the Australian Competition and Consumer Commission (ACCC) as they started looking for feedback from consumers, businesses, and stakeholders.

ACCC Commissioner Catriona Lowe encouraged the public to give their input.

'We will then examine the information provided by Australia Post and the feedback received in the context of our role under the legislation,' Commissioner Lowe emphasised.

This news may come as a disappointment, especially for those who still prefer sending handwritten messages.

Sending a handwritten letter or card still holds sentimental value for some and gives a personal touch that technology cannot replicate.

While the proposed price increase may seem small, it is indicative of the broader shift away from traditional postal services.

For now, AusPost customers may still use their current rates to send out letters just in time for the holidays.

Read more about their Christmas schedule and deadlines here.
Do you still enjoy sending and receiving letters the old-fashioned way, or have you embraced digital communication? How will the proposed postage rate increase affect you? Please share your thoughts with us in the comments section below!