ACCC WAVES THROUGH AUSPOST RISE

The ACCC is not objecting to Australia Post’s latest price increase for its reserved ordinary letter service, which will increase by an inflation-busting 9.1 per cent.

The latest increase is another blow to the mailing industry, which is seeing something of a revival since Covid restrictions ended, as marketers realise the limitations of digital communications, and the benefits of direct mail.

Under the draft proposal, Australia Post intends to increase the basic postage rate, which is the price to deliver ordinary small letters, from $1.10 to $1.20. It also intends to increase the price of ordinary large letters up to 125 grams from $2.20 to $2.40, and the price of ordinary large letters between 125 grams and 250 grams from $3.30 to $3.60.

Australia Post is not proposing to increase the price of concession stamps (60 cents) or stamps for seasonal greeting cards (65 cents).

"We are satisfied that the proposed price increase is unlikely to result in Australia Post recovering more than the cost of providing the letter services,” ACCC Commissioner Anna Brakey said.

Brakey followed the AusPost messaging, saying, “The combination of declining letter volumes and an increasing number of delivery points around the country has increased the cost of delivering letters.”

Australia Post has been focused on its parcels business for several years now, as parcel volumes have soared, with letters now effectively second-class citizens in its strategic direction, much to the chagrin of the print and mail industries.