Even when many of our communications turned digital, there’s nothing quite like the affection and thoughtfulness in a handwritten letter to stay connected with family and friends.

But unfortunately, we have to report that soon, postage stamps could be more expensive than before.

Under the proposed changes by Australia Post, the cost of a standard stamp is set to leap from $1.20 to $1.50 in January next year. This is a 25 per cent increase that would affect all kinds of letters, from postcards to your friend’s Sunday letters.

It may not sound like much, but it does add up–the average household would pay an extra $4.50 a year to send around 15 letters.

Australia Post proposed new prices for standard stamps. Credit: Martha Almeyda/Shutterstock

However, the price of concession stamps and seasonal greetings stamps will stay the same.

Group Chief Executive Officer and Managing Director Paul Graham has said that an increase in basic stamp prices is deemed necessary for Australia Post to remain financially viable.

'As we are entirely self-funded and receive no ongoing government funding, we need to ensure we reduce losses in our letters business,' Graham said.

The company recently reported a $384.1 million loss in its Letters business.

‘The average household sends around 15 letters a year and, if implemented, the proposed increase would cost about $4.50 extra a year,’ an Australia Post spokesperson said.

This comes after the company raised the basic postage rate from $1.10 to $1.20 on January 3, 2023, the first increase since 2020.

The company acknowledged everyone may not welcome the proposed change and has put forward a proposal to the Australian Competitor and Consumer Commission (ACCC) to give the public an opportunity to have their say on the proposed price rise.

The ACCC can’t approve the rise but can lodge an objection to it–if you think the prices are unfair, we recommend you have your say.

‘We would like to hear from consumers, businesses and other stakeholders about their views on Australia Post’s proposed price increase,’ ACCC Commissioner Anna Brakey stated.

The consultation closes on 29 September 2023. You can learn more and make your voice heard by visiting the ACCC website here.

In our previous article, SDC members voiced their concerns about the changes proposed by Australia Post.

Member @Jan A wrote: ‘Email is a fabulous way of communicating with others, but not everyone has it. My much-loved 99-year-old aunt, who lives in New York, does not have any electronic gear. She enjoys receiving letters. I write to her about every 4 weeks. She is the only person I write letters to any more. She tells me that [she] gets herself a cup of tea or coffee to have while she reads the letters. It's nice to know I am bringing her some happiness in her day.’

‘I still write and get letters via Australia Post. What is to become of my favourite posties?’ member @Liz shared.

However, some of them mentioned that they resorted to the digital alternative.

Member @Suzanne rose said: ‘I do most of my mail sending and receiving through emails, it's free, it's safer, and you can print it out if you really have to. And the amount of paper it saves is incredible.’

‘Birthday and Christmas cards are the only mail I still send, but this is solely because I make those cards myself,’ member @Trudi wrote in a comment.

‘Ten years ago, I used to get a lot of mail because then I had four rental properties across Australia plus my own home, and there was what appeared to be an endless stream of bills and bank statements arriving by mail. I have since sold two properties, and I have changed to email for bills and access my bank statements online,’ the member added.

Key Takeaways

• Australia Post has proposed a 25 per cent increase to the price of stamps, from $1.20 to $1.50 from January next year.
  
• Group Chief Executive Officer and Managing Director Paul Graham said the increase is necessary for Australia Post to remain financially viable, given its recent loss of $384.1 million in its Letters business.
  
• The Australian Competitor and Consumer Commission (ACCC) has received a draft proposal for the increase and wants to hear from businesses and other stakeholders about their views.
  
• The ACCC cannot approve the price rise but can object to it. The consultation on the proposal is now open until September 29.
  

What do you think of this story, members? Do you think the increase is justified? Let us know in the comments below!

 

[wjs1957]

And that folks is why I email my friends in Australia and overseas all the time at no cost. I don't even have to pay for a card for Christmas, Birthday, Anniversary or whatever. I just email and attach the appropriate GIF or JPEG file and job done at no cost!!

 

[Ezzy]

Locks only apply to the back of the mail box if it can take one. Not all letters are put fully in the mail box and they are not always big enough to take a magazine (open road etc), letters and junk mail that posties deliver. Look around and see how many letters are sticking out of the mail box!

Very true. That is why many years ago l made the mouth of my letterbox wider & higher & when books were folded or mail left hanging out l phoned the distribution centre & complained, telling them l had made changes which accommodated these deliveries. Once or twice a new Postie hadn't done the 'right thing' a call got it sorted. Nothing worse than wet mail in winter because the Postie was lazy.