Hard-up Australians are set to be hit in their pockets once again, with Australia Post proposing a whopping 25% increase to the price of stamps.
Under the proposed changes from January next year the cost of standard stamps will leap from $1.20 to $1.50.
The price of concession stamps and seasonal greetings stamps will not go up.
Increasing the price of basic stamps is necessary to ensure Australia Post remains financially viable, Group Chief Executive Officer and Managing Director Paul Graham said.
“As we are entirely self-funded and receive no ongoing government funding, we need to ensure we reduce losses in our letters business,” Graham wrote in a statement.
The embattled company recently reported a $384.1 million loss in its Letters business in the 2023 Financial Year.
An Australia Post spokesperson attempted to downplay the impact the changes would have on households.
“The average household sends around 15 letters a year and, if implemented, the proposed increase would cost about $4.50 extra a year,” a statement said.
Australia Post lodged a draft proposal for the increase with the Australian Competitor and Consumer Commission on September 4.
“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 said.
The ACCC can’t approve the prise rise but can lodge an objection to the increase, it confirmed in a statement.
Consultation on the proposed price increase is now open here and closes on 29 September 2023.
The decision to accept the changes will ultimately lie with the Minister for Commuications Michelle Rowland MP.