The $1 stamp is coming: Australia Post given the go ahead to charge 40% more to send a letter

ACCC yesterday confirmed they have given the green light to Australia Post to raise the price of a stamp to $1

ACCC yesterday confirmed they have given the green light to Australia Post to raise the price of a stamp to $1 from 70c, an increase of more than 40 per cent.

According to a statement by Auspost, they lodged a draft notification with the Australian Competition and Consumer Commission (ACCC) to increase the Basic Postage Rate (BPR) from 70 cents to $1 effective 4 January 2016, in August.

Ahmed Fahour, Managing Director & Group CEO, said this decision is the second, critical step in letters reform.

“We have now secured the two reforms essential to ensuring a sustainable letters service – for our people, our customers and the community,” Mr Fahour said.

“The decision by the ACCC to not object will allow Australia Post to continue to support over 4,000 Post Offices which provide an excellent service to the Australian community.

“Post Office licensees will receive, on average, a $25,000 boost per annum, which is part of the additional $125 million increase in annual payments that Australia Post has committed to for the Licensee network.

“It will also allow Australia Post to recover more of the cost of the service while maintaining five-day a week delivery and continuing to meet our important Community Service Obligations.”

Plans are already well underway in readiness for the introduction of a two-speed letters service from 4 January.

The Priority service offers delivery within 1-4 business days depending on destination, while the Regular service is up to two business days longer than Priority. To send a letter at the faster Priority speed customers will need to purchase a Priority label from their local Post Office or the Australia Post online shop and place it next to the stamp. Based on the $1 BPR, a Priority label will cost $0.50 cents.

Australia Post have assured they will maintain the concession stamp price at 60 cents, which is available to 5.7 million eligible Australians.

For more info on the pricing changes and how the two-speed letters service works, click here.

Tell us, are you annoyed or is their reason understandable?

  1. how can they justify 40% when they tell us inflation is only 2%? Our pension & savings slip behind more each day #auspol

  2. We normally post statements at the end of the month but now they will be emailed. Even 70c is too much! I have a few quarterly bills emailed to us and note there is a fee if you still want paper. Also heard that post may only be delivered 3 times a week, if everyone stops posting letters then that would probably be enough. It’s probably understandable when most of us stay in touch by FB or email anyway.

    • I heard they are doing a grading system where you pay more if you want delivery every day

  3. Inevitable, I guess.
    $1 in 2016. Then watch for regular 50c increases thereafter.

  4. & they worry that nobody posts anything anymore well we definably won’t be now, more jobs lost.

  5. This is one price hike that won’t affect me, I can’t remember the last time I sent a letter to is phone, text or email for me in this era

  6. lol.. you will be getting even less customers now.

    • i posted a card with $20 in it to my granddaughter on 29th august. she still not got it. even australia got bad people working in there po s.

  7. I still post birthday cards as many people do. I expect the ” card” industry will be effected.. And the newagents… And it will all snowball….

    • Yes. For my birthday last week I got 2 cards. .. All the rest were by ph, fb and texts. Years ago we used to get about 25+ cards. .. Affecting many businesses

    • If you look at how far some cards go, say from Qld to Tasmania, it’s still a bargain. What can you get for $1? If it’s only Christmas and birthdays, I still think it’s fine and no a text, or email is not the same.

  8. I still think it is good value. It’s cheaper than driving your car to wherever your letter or card has to go to & not everybody has a mobile phone or computer.

  9. I was in the post office Thursday asked when they were going up and was told they didn’t know. I bought 10 70c stamps.

      • They are currently 60 cents for pensioners, however you can only buy a total of 50 in any one year. I send a lot of birthday cards and 80 Christmas cards each year, so 50 doesn’t go too far. I think it is lovely to receive a card in the mail !!!

    • Audrey if the $1 stamp comes in you will have to add 30c to your 70c stamp. It happened to me last time.
      I get the pension stamps now, send all Chrissy cards with them, much cheaper.

    • Tight and miserable people won’t send cards anyway. They are flat out wishing anyone a happy christmas. I send about 30 cards at Christmas and don’t plan to stop.

    • Jan Edwards
      What a nasty thing to say. Just because some people don’t send xmas cards doesn’t mean they are tight and miserable. Maybe their medications or food or rent or electricity are a higher priority than cards. It’s people with your sort of attitude towards others that are miserable nasty people.

    • I hand most of mine out. Does that mean I am tight? Yep.

      Then again many of them have a bottle of wine or a box of chocolates attached, so I tend not to have many people complain I did not post them

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