Source: Australian Ministers for Regional Development
The ACCC is seeking feedback from businesses and consumers on Australia Post’s draft proposal to increase stamp prices for ordinary small and large letters by 8.8 per cent from mid-2026. The proposed price increases are as follows:
|
Current price |
Proposed price |
Increase |
|
|
Small letter (basic postage rate) |
$1.70 |
$1.85 |
8.8% |
|
Large letter up to 125g |
$3.40 |
$3.70 |
8.8% |
|
Large letter between 125 and 250g |
$5.10 |
$5.55 |
8.8% |
Australia Post is also planning to increase the prices of several of its other reserved letter services from mid-2026, including priority labels and various business products such as PreSort and Print Post.
While these services are outside the scope of the ACCC’s price notification assessment process, a full list of proposed prices can be found in Australia Post’s draft price notification.
Australia Post is not proposing to increase the price of concession stamps (60 cents each) or seasonal greeting card stamps (65 cents each). Concession card holders are now also eligible to purchase up to 75 concession rate stamps per year (up from 50), following a recommendation by the ACCC.
“We welcome the views of consumers, businesses and other stakeholders on Australia Post’s proposed increases to the price of stamps,” ACCC Commissioner Anna Brakey said.
“The feedback we receive will help inform our consideration of Australia Post’s proposal, with a preliminary view to be released in the coming months.”
The ACCC is required to assess Australia Post’s price notification under the Competition and Consumer Act, and notify Australia Post of whether it objects to the proposal.
The ACCC does not have the role of approving any proposed price increase under the Australia Post price notification framework. Only the Minister for Communications has the power to reject a price increase proposed by Australia Post.
Australia Post has also indicated potential pricing for future years, proposing increases to the basic postage rate of 20 cents in both 2027 and 2028. However, these potential future prices will not be assessed as part of this current price notification process.
The ACCC has released a consultation paper outlining the key issues relating to Australia Post’s proposal.
In addition to feedback received, the ACCC’s assessment will also consider Australia Post’s ability to recover the efficient costs of providing the reserved letter service, including a reasonable rate of return.
Consultation on Australia Post’s proposed price increase is now open until 13 March 2026. Submissions can be sent via email to postalservices@accc.gov.au.
For more information about the consultation process, including guidelines for making a submission, see consultation on Australia Post’s draft price notification.
Background
Under the Competition and Consumer Act, the ACCC is responsible for assessing proposed price increases by Australia Post for its reserved ordinary letter services delivered to the regular timetable. The ACCC must consider Australia Post’s proposed price increases of these services and may decide to:
- not object to the price increase
- not object to a price that is less than that proposed, or
- object to the price increase.
Australia Post is required to provide written notice of the proposed price increase to the Minister for Communications. It can only increase the basic postage rate if the Minister does not disapprove the proposal within 30 days.
Australia Post’s reserved ordinary letter services are services for which Australia Post has a statutory monopoly and are declared as ‘notified services’ under the Competition and Consumer Act.
Australia Post cannot increase the prices of its notified services without providing written notice of the proposal to the ACCC and the Minister for Communications. The current declaration for Australia Post’s notified services is due to expire on 31 December 2028.
The lodgement by Australia Post of a draft price notification provides the ACCC with time to undertake a public consultation process and economic assessment of the proposed increase.
After considering submissions received in this consultation process, the ACCC will publish a preliminary view on Australia Post’s draft price notification and facilitate another round of public consultation on this view.
Following this process, Australia Post may lodge a formal price notification with the ACCC and the Minister. The ACCC must make an assessment within 21 days and provide Australia Post with notice of its assessment. Australia Post cannot increase prices during the 21-day period. It may only increase prices if the Minister does not disapprove the proposal within 30 days.
The last price notification from Australia Post considered by the ACCC was in 2024, and prior to that in 2023 and 2022.
While the ACCC did not object to Australia Post’s last price notification, it made a series of recommendations in its June 2025 decision regarding Australia Post’s cost allocation model, forecast data and engagement with its customers. A summary of Australia Post’s implementation of these recommendations is available at Appendix 2 of the draft price notification.