Australia Post Is Jacking Its Prices (But Don’t Freak Out)

With the advent of online shopping, postal services have been taken for a serious ride. But instead of driving postal package prices up, Australia Post is proposing a hike on ordinary letter postage, an art usually reserved for social messenging apps these days. If it’s approved, it’ll be the first hike since January 2016, meaning you’ll have to fork out a few more cents every time you want to send a postcard or letter.

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Australia Post has notified the Australian Competition and Consumer Commission (ACCC) it plans to increase the basic postage rate of ordinary small and large letters by 10 per cent. If allowed by the ACCC, the changes would come into effect from January 2020.

According to the ACCC’s price notification document, Australia Post wants to increase the cost as the cost of delivering increases while the revenue falls.

“[It’s] necessary for providing a financially sustainable letter service due to the combination of ongoing volume decline in letters delivered and an increasing delivery footprint,” the document outlined.

Australia Post previously raised the price in January 2016 for its two-speed postal service, which increased the basic postage rate from 70 cents to its current $1 rate. Priority letters were also made to cost $1.50.

While the increase isn’t likely to break anyone’s bank drastically for one-off sends, Australians who enjoy the increasingly-antiquated art of sending cards for birthdays and the holiday period might feel the sting a bit more severely.

How much more will I have to pay if it’s approved?

  • Small letters: $1 will be $1.10
  • Large letters up to 125 grams: $2 will be $2.20
  • Large letters more than 125 grams but less than 250 grams: $3 will be $3.30
  • Large letters up to 500 grams: $5 will be $5.50

The ACCC is expected to make a decision by early December 2019.

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