A proposed increase by Australia Post in the price of its basic postage rate is being scrutinised by the competition watchdog, the ACCC.
Posting a letter in Australia is about to cost more, with the basic postage rate scheduled to increase from $1.00 to $1.10 in January next year, following the ACCC’s decision not to object to a draft proposal from Australia Post to increase postage prices.
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Snail mail is not only slow but it’s now more expensive than ever to post a letter, as the cost of a basic postage stamp rose to $1 from Monday.
As snail mail becomes less and less relevant, Australia Post - looking to stem financial significant losses and a rapid decline in regular mail volumes – is now set to gain the green light from the competition watchdog to increase basic postage rates by 30 cents to $1.
The competition watchdog, the ACCC, says Australia Post’s proposed change to increase basic postage rates to $1would significantly reduce the losses on the postal service’s stamped letters by 2016-17.
In the face of a continuing rapid decline in ordinary mail volumes, losses in its mail devliery business and planned voluntary staff redundancies, Australia Post is proposing an increase in the cost of its ordinary letter services, including stamps.
Australia Post is deploying new FlexiPOS point-of-sale technology in over 300 regional and rural licensed post offices across Australia in a move which it says will enhance services to local communities.
Australia Post has introduced a concession stamp for pensioners and other eligible concession card holders just one week before the basic postage rate increases.