The ACCC has decided not to object to Australia Post’s proposal to increase the prices of ordinary letter services delivered to its regular timetable, including the basic postage rate (BPR) from $1.00 to $1.10.
Australia Post is not proposing to increase the price of priority labels (50 cents), concession stamps (60 cents) or stamps for seasonal greeting cards (65 cents), such as Christmas cards.
Consistent with its draft view, the ACCC considers that the proposed price increases are unlikely to result in Australia Post recovering more than its cost of providing monopoly letter services. This is due primarily to a forecast sustained decline in letter volumes.
Australia Post currently intends to implement the increases on 2 January 2020.
The ACCC’s decision on Australia Post’s proposal is available at: Australia Post - letter pricing 2019.
Background
Under the Competition and Consumer Act 2010 the ACCC is responsible for assessing proposed price increases by Australia Post for its ordinary letter services delivered to its regular timetable.
Australia Post must also notify the Minister for Communications of proposed price increases and must not increase prices if the Minister disapproves within 30 days of receiving notification from Australia Post.