ACCC wants your input on yet another Australia Post price increase
Australia Post has drafted another price increase and the ACCC wants your input.
The Australian Competition and Consumer Commission (ACCC) has called on consumers and businesses to speak their minds about Australia Post’s draft proposal to increase its base postage rate.
According to the proposal, Australia Post is looking to raise stamp prices by 25% from January 2024.
Here’s what those changes would translate to:
- Ordinary small letters: $1.20 to $1.50;
- Ordinary large letters up to 125 grams: $2.40 to $3.00; and
- Ordinary large letters between 125 grams and 250 grams: $3.60 to $4.50.
There are no plans to increase the price of concession stamps or stamps for seasonal greeting cards, which are currently priced at $0.60 and $0.65 respectively.
The proposed increase will help address the rising costs of delivering letters and reduce losses in that part of the business as it continues to deliver for its customers and communities,” a press release from Australia Post read.
“Australia Post reported a $384.1 million loss in its Letters business in FY23 and an estimated cost of meeting its
Community Service Obligations, as required under the Australian Postal Corporation Act 1989, of $442 million.”
The ACCC has said it will consider Australia Post’s recovery of efficient costs, including a reasonable rate of return, as well as how the nail carrier’s common costs are allocated to the relevant letter segments.
“We would like to hear from consumers, businesses and other stakeholders about their views on Australia Post’s proposed price increase,” ACCC Commissioner Anna Brakey said in a statement on Tuesday.
“We will then examine the information provided by Australia Post and the feedback received in the context of our role under the legislation.”
The Minister of Communications will also be required to approve the price increase for it to go through.
“Business and government customers have been very clear they want transparency and predictability around price changes. Providing notice, or at a minimum guidance, of future price changes allows customers to plan for changes financially and minimise disruption,” the draft proposal reads.
“To address this issue, as noted earlier, Australia Post will propose a long-term price path for changes to its reserved letter prices, which will take account of the outcome of the government’s modernisation consultation and any regulatory reform, and will also consider prevailing market conditions at that time.”
This is just the most recent price increase being proposed by Australia Post. Back in July it raised prices for MyPost business customers.
This included the removal of its International Economy Air parcel service via MyPost Business, and separately, a decrease in volume-based savings of between 2.5% and 5% for customers on Bands 3-5.
There was also a new $13.95 price for MyPost Business Parcel Pickups for customers on Bands 0-3.
Speaking to SmartCompany at the time, Australia Post’s executive general manager of parcel, post and e-commerce services Gary Starr said the organisation reviews its prices every year around July.
Starr also said at the time that Australia Post needed to increase its price due to economic pressure.
Consultation on the proposed latest price increase is now open and closes on September 29, 2023.
