ACCC Does Not Oppose Australia Post’s 13.3% Stamp Price Hike – What It Means for Consumers and Businesses

Barry Money
Jul 2
3 min read

Updated: Aug 6

Published: 23 June 2025

Based on ACCC Media Release – 23 June 2025

From 17 July 2025, the cost of sending an ordinary letter in Australia is expected to rise, following the ACCC’s decision not to oppose a 13.3% price increase proposed by Australia Post.

Unless the Minister for Communications actively disapproves the proposal within 30 days, the basic postage rate will increase from $1.50 to $1.70. This marks the first stamp price hike since January 2023, and comes amid growing concerns over the viability of Australia Post’s traditional letter delivery services.

At Bane Legal Services, we don’t give legal advice — but we do help small businesses, franchise networks, and not-for-profits connect with experienced Australian commercial lawyers. And with these changes affecting organisations that still rely on physical mail, now is the time to consider how legal, regulatory and operational strategies may need to shift.

What’s Changing?

The proposed new stamp prices are:

Item	Current Price	New Price (from 17 July)
Ordinary small letter (basic stamp)	$1.50	$1.70
Ordinary large letter (up to 125g)	$3.00	$3.40
Ordinary large letter (125–250g)	$4.50	$5.10
Concession stamps	No change	Remains $3 for 5 stamps
Seasonal greeting card stamps	No change	Remains $0.65 per stamp

Why the ACCC Didn’t Object

The ACCC’s role is not to approve or set prices, but to assess proposed price increases under Part VIIA of the Competition and Consumer Act 2010 for ‘notified services’ — those where Australia Post holds a statutory monopoly.

According to the ACCC, Australia Post’s letter delivery services are running at a loss, largely due to:

Declining mail volumes — households now receive just two letters per week
Increasing delivery points — adding more cost with each new address
A forecasted 10.6% annual decline in mail volumes through to 2028

As Commissioner Anna Brakey put it:

“The costs to Australia Post of providing the letter service are greater than the revenue it produces.”

ACCC Recommendations for Australia Post

While the ACCC did not object to the price hike, it made several recommendations to improve transparency, affordability, and fairness, including:

Increasing the number of concession stamps available per customer (currently capped at 50/year)
Providing more robust data on cost forecasts and allocation methods in future price submissions
Engaging in transparent, early communication with businesses reliant on mail
Exploring ways to support small businesses and regulated entities that must send physical letters

The ACCC also noted that Australia Post’s proposed price of $1.70 remains below the OECD median of $1.93 for comparable basic stamp rates.

What Does This Mean for Your Business?

If your business relies on physical mail for:

Regulatory compliance (e.g. issuing notices under the Corporations Act or tenancy laws)
Customer correspondence
Franchise network operations
Marketing, fundraising or invoicing

...you may need to re-evaluate your communications strategy, contract terms, or pricing models.

Some areas where legal advice could assist:

Reviewing statutory obligations that require postal communication
Ensuring your contracts allow for alternative forms of service (e.g. email)
Auditing cost exposure to postal price increases
Reviewing concession eligibility (e.g. for charities or vulnerable customers)

At Bane Legal Services, we can connect you with the right legal expert — from communications compliance to cost-control contract reviews — to help future-proof your business.

A Reminder About the Minister’s Role

While the ACCC has not objected to the price increase, only the Minister for Communications has the authority to reject Australia Post’s proposal.

If the Minister does not reject the increase by mid-July, the new prices will come into effect from 17 July 2025.

Final Thoughts

This decision marks another step in Australia Post’s transition away from traditional mail services — and a key moment for small and medium businesses to rethink their reliance on physical letters.

If your operations still depend on Australia Post's services, now’s the time to consider whether digital transformation, legal review, or process updates are needed.

Need help navigating changing postal regulations or transitioning to digital communication?

We’ll introduce you to an expert Australian lawyer who can guide your next steps.

Disclaimer: This blog is based on a media release published by the Australian Competition and Consumer Commission (ACCC). Bane Legal Services is not a law firm and does not provide legal advice. For legal advice, we can connect you with a qualified Australian lawyer.