Australia Post has moved to increase the basic postage rate from $1.70 to $1.85, submitting a draft notification to the ACCC aimed at curbing mounting losses within its traditional mail division.
If approved, the new pricing is expected to take effect by mid-to-late 2026.
The proposal comes as the government-owned corporation grapples with a $230.4 million loss in its letters service for the 2025 fiscal year, driven by an 11.7% drop in mail volume—the lowest level recorded since the late 1930s.
Despite the hike, Australia Post emphasised that the financial impact on the average household will remain under $1 per year, noting that individuals now account for less than 3% of all mail sent.
To protect vulnerable users, the price of concession stamps (60 cents) and seasonal greeting stamps (65 cents) will remain frozen, maintaining rates that have held steady for over a decade.
Officials pointed out that even at $1.85, Australian postage rates would remain among the most affordable in the OECD.