The proposed increase will result in an additional cost of approximately $1.20 per year for the average household.

Australia Post has reported a significant decline in letter volumes, reaching levels not seen since the 1950s, with the average household purchasing only five to six full-rate stamps annually.

Currently, the average household receives only two letters weekly, highlighting the drastic shift in communication habits.

ACCC Commissioner Anna Brakey acknowledged the additional costs for consumers but pointed out the financial struggles faced by Australia Post in maintaining its national letter service.

Charities will continue to benefit from discounted rates for sending mail, despite the price increases affecting other consumers.

While Australia Post is losing money on letter deliveries, it is seeing growth in revenue from online shopping and parcel deliveries, indicating a shift in its business model.

The Australian Competition and Consumer Commission (ACCC) has approved a 13.3% increase in postage rates, allowing Australia Post to raise the price of stamps for ordinary small letters from $1.50 to $1.70.

Despite the increase, Australia Post's stamp prices will still be below the OECD median price of $1.93 for small letters.

This price hike is aimed at addressing the decline in revenue from traditional mail services, as Australia Post's letter operations are currently operating at a loss.

Brakey also emphasized the need to consider vulnerable Australians, recommending an increase in the number of concession stamps available per customer, which is currently capped at 50 per year.

The proposed price changes are still subject to approval by Communications Minister Anika Wells, who has the authority to reject them before they take effect on July 17, 2025.

Under the new fee structure, the cost for ordinary large letters weighing between 125 and 250 grams will rise from $4.50 to $5.10, while stamps for large letters lighter than 125 grams will increase from $3.00 to $3.40.