Australia Post is planning to increase the cost of postage stamps as letter volumes fall to their lowest level in almost 90 years, contributing to a reported $230 million loss in its traditional mail service.
Under a proposal submitted to the ACCC, the basic postage rate would rise from $1.70 to $1.85 in mid-to-late 2026. Concession and seasonal greeting stamps would remain unchanged at 60 cents and 65 cents respectively.
Australia Post says fewer than three per cent of letters are now sent by individuals, with most mail generated by government agencies and businesses.
In a statement, the organisation said its letters service remains in “structural decline,” with volumes dropping a further 11.7 per cent in the 2025 financial year — excluding election-related mail — reaching levels not seen since the late 1930s. Even including election mail, the letters division recorded a $230.4 million loss.
Group CEO and Managing Director Paul Graham said the proposed price rise reflects the growing gap between declining letter use and the cost of maintaining a nationwide delivery network.
“As customers increasingly shift to digital communication, Australia Post must ensure the letters service remains sustainable into the future,” Mr Graham said, adding the increase is part of broader efforts to address ongoing financial challenges while maintaining services for communities.
Australia Post estimates the change would cost households less than an extra dollar per year on average, noting Australia would still have one of the lowest stamp prices among the 38 OECD member countries.
The ACCC last approved a postage increase in June last year, when the basic stamp price rose from $1.50 to $1.70. Commissioner Anna Brakey acknowledged price rises place pressure on consumers but said the national letters service continues to operate at a loss.
She also highlighted the impact on vulnerable Australians, recommending Australia Post increase the annual cap on concession stamps from 50 to 75 — a change the organisation has since implemented.
