Australia Post to increase basic postage rate

Australia Post to increase basic postage rate

Australia Post has lodged a draft notification with the Australian Competition and Consumer Commission (ACCC) seeking an increase in the Basic Postage Rate (BPR) from $1 to $1.10 to apply from January 2020, the first increase in four years.

The company says that this proposed increase, along with efficiency savings across the operational network, reflects “a balanced approach to ensuring a sustainable community post service.”

The proposed increase would cost the average household, which regularly sends letters, less than $1.50 per year.

It will help keep Post Offices open – including Australia Post’s vital regional and rural network – keep posties delivering five days a week and ensure Australians everywhere can continue to access these important services.

Group Chief Executive Officer and Managing Director Christine Holgate said importantly the 60 cent price of concession stamps would be protected and available to 5.7 million Australians, including pensioners and veterans, and the 65 cent seasonal greeting card stamps will stay the same.

“In the last financial year, we delivered a profit in-line with that three years earlier. We did this with 820 million less letters delivered to over 700,000 more homes,” Ms Holgate said.

“Our posties deliver to more than 12.1 million addresses across the country. It doesn’t matter if they have one letter or 100 for the address, they still need to drive past the letterbox each day.

“Last year our letters business lost $190 million – this is after the benefit of significant efficiency savings. It is important that we responsibly address pricing if we are to protect this important service and keep our network of community post offices open.”

Business and government customers, who send around 97 % of all mail in Australia, will continue to receive incentives to encourage them to use mail as part of their communication strategy. Charities will also continue to receive significant discounts off the BPR.

Since the last BPR increase in January 2016, the General Retail Industry Award has risen by 13 %, as well as many of Australia Post’s other costs.

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