Hard-working Australians are bracing themselves for another financial blow as Australia Post unveils its proposal to increase the price of stamps by a substantial 25%. From January next year, the cost of standard stamps will soar from the current $1.20 to a new high of $1.50, causing concerns for many already grappling with the rising cost of living.
This announcement comes as a harsh reality for Australians who heavily rely on postal services for both personal and professional communication.
Raising the cost of standard stamps is imperative to guarantee the financial sustainability of Australia Post, stated Paul Graham, the Group Chief Executive Officer and Managing Director.
In a statement, Graham emphasised, “Since we are wholly self-funded without continuous government support, it is crucial that we take steps to mitigate losses in our postal services division.”
In the 2023 Financial Year, the beleaguered firm disclosed a loss of £384.1 million in its Letters division. An Australia Post spokesperson made an effort to minimise the effects that the alterations would have on households.
On September 4, Australia Post submitted a preliminary proposal for the rate hike to the Australian Competition and Consumer Commission.
In a statement, the ACCC clarified that it lacks the authority to sanction the price increase but can register an objection to it. The consultation period for the proposed price hike is currently open and will conclude on 29th September 2023.