Australia Post wants to bump up the price of a standard stamp again, citing its growing losses as letter volumes continue to plummet.

The organisation has applied to raise the price of posting a standard letter across Australia from $1.10 to $1.20 from January 2023.

It would be the first increase in the cost of sending a letter since a similar rise in 2020.

Group chief executive and managing director Paul Graham said the proposed change would mean Australia Post could continue to deliver sustainably and serve its communities, especially in remote and rural areas.

“Over the past three years, the volume of letters mailed in Australia has fallen by 15 per cent, or 280 million articles. In FY21, our letters business lost $205.7 million, and these losses are expected to continue to rise over the coming years,” Mr Graham said.

“The number of Australian addresses also increased to 12.6 million, which is 400,000 more letterboxes our posties must pass, even if there is no mail. So, we are actually making a loss on every stamped letter that is delivered.

“Despite this, we’re committed to providing this important service, and increasing the basic postage rate by just 10 cents will ensure our customers across Australia can continue to access this essential service.”

Under Australia Post’s proposal, there will also be increases to the prices of sending a large letter (those over 125 grams). It will not affect the $0.60 concession rate or the $0.65 Christmas and seasonal greetings rate.

The Australian Competition and Consumer Commission is calling for submissions on Australia Post’s proposed price hikes. It will assess the application in accordance with the Competition and Consumer Act, and determine if there are objections on competition grounds.

“We welcome submissions from industry stakeholders and consumers, and they will all be taken into account before we release our view on the draft proposal,” ACCC commissioner Anna Brakey said.

The final decision will be made by Communications Minister Michelle Rowland.