ACCC clears 5c postage stamp price hike

The consumer watchdog has cleared the way for Australia Post to seek government approval for a five cent increase in the cost of a basic postage stamp.

The Australian Competition and Consumer Commission (ACCC) says is not objecting to the postal monopoly’s plan to charge 55 cents from September 15.

“Because the proposed price increases do not involve Australia Post over-recovering the costs of providing … letter services,” commission chairman Graeme Samuel said.

But Australia Post’s proposal did not provide “sufficient certainty” to satisfy customers.

“Therefore, in its decision, the ACCC has established a framework for future price notifications that will encourage Australia Post to continue to reduce costs, improve productivity, and provide more certainty for customers,” Mr Samuel said.

The last time Australia Post increased the cost of the basic postage stamp was in 2003.

It will need approval from the federal government before implementing the increase.