Post Office defends 5c stamp price rise

The 45c stamp will be cancelled on January 13 when the cost of a basic stamp rises to 50c.

Australia Post spokesman Petros Kosmopoulos said it was the first time in 11 years the basic postage rate had increased.

“The 45c rate has not changed since January 1992, and during this period the consumer price index has risen by 30% ,” Mr Kosmopoulos said.

“The 5c increase represents a rise of 11% and compares with a 100% increase in the price of a litre of milk and a 50% increase in the price of a loaf of bread over the last 10 years.”

He said 50c was one of the lowest basic rates in the developed world. Canada’s was the equivalent of 53c, France’s 62c, Germany’s 76c, Italy’s 66c, Japan’s 71c and Britain’s 56c.

“The increase has been held back as long as possible, but is now necessary to ensure the ongoing viability of our letters business,” Mr Kosmopoulos said.

The Australian Competition and Consumer Commission had approved the rise last October.

It will also affect large letters, greeting cards and pre-paid envelopes by about 11%.

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