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.

Letters are a more personalised and creative way to communicate with loved ones. Image Credit: Pexels/Suzy Hazelwood

'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.

Key Takeaways

• Australia Post proposed a raise in their postage rates, which could take effect by 1 July.
• Postage for small letters should increase from $1.50 to $1.70. Prices for large letters would also increase from $3 to $3.40.
• The price increase was in response to significant losses in the letters business.
• Despite the proposed price hike, concession and seasonal greeting stamps will remain at 60 cents and 65 cents, respectively.

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!

 

[elaine41]

Every business knows you don't increase business by raising prices. As one of the largest businesses in Australia why is it that Australia Post doesn't understand this basic principle of doing business? Raising prices drives customers away. If Australia Post wants to survive into the next decade it needs to change the policy of raising prices every chance they get while at the same time being protected by the govt against customers using couriers etc to deliver business size letters. In a business I worked in a few short years ago we tried to do this & got threatened with legal action if we persisted.

 

[Free.lander]

the management whine and complain about a loss and then do everything to make it worse and use that bigger loss to make it even worse
Raise the price of stamps and then whinge that people are not posting letters any more- surprise
Now stop every day letter delivery- so people can't see the point of posting letters any more-- surprise,surprise
Now ignore the fact that people are in a financial bind with the cost of living and poor postal service , they raise the cost of a letter again-- well clowns that will not improve service, letter numbers or show your intelligence as CEO's -- next it will be---PEOPLE ARE NO LONGER USING AUST POST FOR LETTERS SO WE WILL SHUT DOWN ALL LETTER SERVICES to save money and it will be the public's fault for not supporting our very stupid business plan.
Hey here is a thought-- deliver letters with parcel deliveries
after all most parcels are paid by the receiver to be delivered so the letters would be complimentary to the paid service.

 

[jtho2908]

How much higher are they going to go?
And they wonder why letter volume continues to go down!!

 

[mylittletibbies]

I don't see how this rise in postage costs is going to help the situation.
Times have changed and even I, at almost 78, now send emails, birthday greetings by SMS etc.
I don't receive as many Xmas or birthday cards as I did years ago.As much as many people don't like this I'm afraid"the times they are a-changing"as the song goes.
How do people suggest Australia Post make up this astronomical loss
No business can keep operating with annual losses like this, which keep getting higher every year
Suggestions???

 

[Keswickian]

I don't think people will return to sending letters even if it were free.
If anybody has a better business plan for Auspost, please let us know what it is instead of incessantly complaining.
We still need a postal service and we shouldn't have to subsidise huge losses year on year, so increased prices are inevitable.

 

[darrellh]

First and foremost if the current plan is not working go back to the drawing board. Maybe employ someone with common sense to make common sense ideas and they might start getting somewhere. I fear though they jhave left it too late as people have dropped sending letters and cards for too long now to pick it up in this cost of living crisis that is not going anywhere

 

[Beany]

I think instead of whining about the cost of postage going up, start sending out letters again, I send cards overseas for birthdays and Christmas, I still send out Christmas cards to people who I might not see very often but want to let them know I am still thinking about them. I also believe it isn't the cost of postage that is making people stop sending letters it the ridiculous cardboard thing the post master/mistress holds up when you want to post a letter or card and say it won't fit in this slot so it will cost you more. Please be aware you can disagree with them, even a very thin letter these days won't fit through the very thin slot they use. Letter boxes have bigger openings to put your cards and letters into.

 

[mylittletibbies]

I don't think people will return to sending letters even if it were free.
If anybody has a better business plan for Auspost, please let us know what it is instead of incessantly complaining.
We still need a postal service and we shouldn't have to subsidise huge losses year on year, so increased prices are inevitable.

First sensible reply so far
Come on 20c cents rise, most average people wouldn't send
10 letters a year, a whole $2/year.
I would rather receive a phone call or SMS on my birthday than friends wasting money on cards, which end up in the bin a few days later.

 

[Free.lander]

I don't see how this rise in postage costs is going to help the situation.
Times have changed and even I, at almost 78, now send emails, birthday greetings by SMS etc.
I don't receive as many Xmas or birthday cards as I did years ago.As much as many people don't like this I'm afraid"the times they are a-changing"as the song goes.
How do people suggest Australia Post make up this astronomical loss
No business can keep operating with annual losses like this, which keep getting higher every year
Suggestions???

the one very important fact that people miss is this-- Aust Post is not a private business but is in fact the old post office which was a government run operation to provide a service to all Australians-- It doesn't have to make a colossal profit as it is a public service. Now that doesn't mean that it has to run at a loss and neither does it mean that the CEO and board members have to be the fat cats , feeding off the service either

 

[Jo Piper3]

I'll still send Christmas cards this year

 

[mylittletibbies]

First and foremost if the current plan is not working go back to the drawing board. Maybe employ someone with common sense to make common sense ideas and they might start getting somewhere. I fear though they jhave left it too late as people have dropped sending letters and cards for too long now to pick it up in this cost of living crisis that is not going anywhere

What common sense idea do you recommend.
I've been in business most of my life, as were my family. Any person who was running a business making these sort of losses would do the most sensible, common sense thing, and quit.
IMO we should just cop the 20 cent rise and stop complaining about this first world problem.

 

[Glenys R]

I still send letters, Christmas and birthday cards, use cheques, carry cash and don't have a mobile. I am a dying breed but am happy with what I am doing.

 

[mylittletibbies]

I'll still send Christmas cards this year

Me too, they are still cheap for concession holders.

 

[Keswickian]

I'll still send Christmas cards this year

Me too.
I don't think people have stopped sending Christmas cards because of the cost of postage. They send e-cards because it's easy, quick, cheap and saves a lot of hand writing.
For the country to complain about the cost of postage, then spend millions on gifts, food, decorations, travel etc. is a bit hypocritical.

 

[rustycu]

I use a PO BOX to receive my mail ( its getting too expensive for a pensioner like me I have no choice - should be a discount for pensioners ! .

 

[Bernice S]

Im sure the letter business is not making any profit but surely this is being off set by their parcel post business. I would be very interested to know how much profit it is making.

 

[mylittletibbies]

Im sure the letter business is not making any profit but surely this is being off set by their parcel post business. I would be very interested to know how much profit it is making.

You're probably right, but all sections of a business need to be operating efficiently and profitably, not one section propping up another.
Irregardless of whether it is a public or private business.
I am aware the CEO etc earn ridiculous amounts but I'm sure it isn't anywhere near $361.8 million and their salaries etc would already be included before profit/loss was calculated.

 

[elaine41]

I use a PO BOX to receive my mail ( its getting too expensive for a pensioner like me I have no choice - should be a discount for pensioners ! .

So stop using a mail box you pay for & start getting your mail delivered to your mail box at the front of your home. This also helps keep the posties jobs.

 

[elaine41]

You're probably right, but all sections of a business need to be operating efficiently and profitably, not one section propping up another.
Irregardless of whether it is a public or private business.
I am aware the CEO etc earn ridiculous amounts but I'm sure it isn't anywhere near $361.8 million and their salaries etc would already be included before profit/loss was calculated.

No. It is one business & all costs & profits are part of that one business. You don't charge more for one part of the business because it is not as profitable as the rest of the business. If the business is making a profit then it is successful.