Australia Post launches concession postage scheme
Australia Post has launched a new concession postage scheme, offering cheaper stamps for customers on low incomes. The stamps will be available from the end of this month priced at 60c for domestic services, as the standard rate for domestic letters rises 10c (or 16.7%) to 70c.
Australia Post said about 5.7m Australians were eligible to register for a MyPost Concession Account from now on.
The 60c stamps, the Post’s first ever concession stamp, will be available for the next three years. Customers will be limited to purchasing 50 of the stamps each year, but their registration will give them a MyPost concession card that entitles them to five free stamps.
Registered customers will also gain access to concession rates for some other Australia Post services and a digital mailbox, the company said.
Ahmed Fahour, the Australia Post managing director and CEO, said: “It is vital that Australia Post ensures we provide an affordable and accessible letters service for all Australians. We remain mindful of the impact to the cost of living of an increase to the stamp price, particularly for those groups who are more dependent on our traditional services.
“The establishment of a MyPost Concession Account ensures that our services remain affordable for low income groups while maintaining our essential services for all Australians,” he added.
Australia Post’s price increase, effective 31 March, will be the first time the state-owned company has raised the basic rate of postage in Australia since June 2010. Regulators approved the price increase earlier this month, stating its belief that the move will still leave the Post making losses on its postal services.
Although Australia Post as a whole is highly profitable because of other services like the parcel business, the traditional letter business has been losing about $218m a year.
“Our customers’ needs are changing and Australia Post must evolve our services to ensure that we continue to help people stay connected by providing a range of choices of relevant services, whether it’s physical or digital,” said Fahour.
NZ price increase
In separate postal news, across the Tasman Sea the people of New Zealand will see their postal rates increasing from 1 July, 2014.
New Zealand Post has said it is raising its rates for the first time in two years with the standard letter rate increasing by 10c to 80c, a 14.2% increase. Large standard domestic letter rates will rise 20% to $1.60, while extra large letters will be merged as a category with oversize letters, with prices lowered by 40c to $2.40. International letter rates will increase by 10c.
Express letter services will have rates the same, while standard parcels will have prices raised by between 10c and $1 depending on the size of the package.
The company said postal rates were going up because it faces higher costs, more delivery points and lower mail volumes. International parcel rates will rise by an average of 4%.
