Australia Post is planning to increase the price of its reserved ordinary letter service.

Australia Post says it 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).

The competition regulator says it does not object to Australia Post’s draft proposal.

“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.

“The combination of declining letter volumes and an increasing number of delivery points around the country has increased the cost of delivering letters.

“The ACCC acknowledges the current inflationary environment and cost-of-living pressures faced by Australian consumers, and we have considered the affordability impacts of the proposed price increase on consumers and small businesses,” Ms Brakey said.

“The average Australian sends about 15 letters each year, meaning the increase is likely to cost about $1.50 per year for people without a concession card.”