Australia’s national postal service is moving ahead with a plan to raise the cost of sending a standard letter, marking another step in its ongoing struggle to offset plummeting demand for traditional mail driven by the rise of digital communication. The state-owned provider has applied to increase the base rate for standard reserved letter services from the current AU$1.70 to AU$1.85, a move that has already received preliminary backing from Australia’s top consumer and competition regulator, which has announced it will not stand in the way of the increase ahead of a final ruling.
The proposal for the price adjustment was officially submitted to the Australian Competition and Consumer Commission (ACCC) back in December 2025 as part of the regulator’s mandatory draft price notification process. Australia Post has framed the increase as a necessary response to accelerating structural decline across its letters business, which has been hit by mounting annual losses as more Australians shift fully to digital channels for personal and professional communication.
According to data released by the postal service, traditional letter volumes dropped an additional 11.7% in the 2024-25 financial year when excluding one-time mail related to national and state elections. The total volume of letters sent across Australia today has fallen to levels not recorded since the late 1930s, the organisation confirmed. Only a small fraction of letters sent today are from private consumers: less than 3% of all mail posted in the country originates from individual senders, with business communications and government agency correspondence making up the vast majority of current letter volume.
To soften public concern over the increase, Australia Post has emphasized that the impact on average household budgets will be negligible. The organisation estimates that the typical Australian household only buys five full-price standard stamps per year, meaning the 15-cent per stamp increase will add just 75 cents to total annual postal spending for the average home. It also noted that falling demand for traditional mail is not an isolated trend, with postal operators across every developed economy facing identical financial pressures from the shift to digital communication.
Importantly, the price adjustment will not apply to two key categories of stamps: concession stamps for eligible low-income consumers will remain capped at AU$0.60, while seasonal greeting stamps will stay at AU$0.65. As an extra support measure for concession users, Australia Post has also raised the annual allocation of discounted concession stamps eligible households can purchase, expanding the limit from 50 per year to 75.
The ACCC has now launched an extended public consultation period to gather feedback from businesses, consumers, and other stakeholders before issuing its final decision on the proposed increase. If the regulator confirms it will not oppose the price change after the consultation period closes, Australia Post will move forward with formal procedural steps for the adjustment and provide a mandatory 30-day advance notice to all customers before the new rate takes effect. In a statement, the postal service reaffirmed its commitment to retaining a universal, accessible national letter service while it adapts to the long-term structural decline in traditional mail volumes.