The cost of sending a letter in Australia could soon rise to 70 cents.
Australia Post will on Friday lodge a notification with the Australian Competition and Consumer Commission (ACCC) proposing to increase the basic postage rate from 60 cents to 70 cents from March 31.
However, it’s also proposing to introduce a concession rate stamp for anyone with a commonwealth government concession card to continue to have access to 60 cent postage for standard letters until 2017.
Australia Post says it has only increased the basic postage rate three times over the past 22 years, with the last in 2010.
“The current stamp price no longer reflects the true cost of delivering each letter and stamp price increases have not kept up with inflation,” Australia Post CEO Ahmed Fahour said in a statement on Thursday.
“This 10 cent increase will allow us to partially offset the growing losses that we are seeing in our letters business.
“At 70 cents the Australian domestic stamp will remain among one of the lowest prices in the OECD.”
Mr Ahmed said Australia Post made a loss of $218 million in its regulated mail business in the 2012/13 financial year, the domestic mail business losing $147 million.
“We are always reluctant to increase the price of postage but we know that its absolutely necessary to maintain essential services and support our critical retail network of more than 4400 outlets.”