Australia Post has confirmed stamp prices will rise after the nation’s postal watchdog gave the green light to a 20-cent hike for sending a standard letter.

The Australian Competition and Consumer Commission (ACCC) issued its final view, stating it “has no objection” to the price rise, paving the way for the Basic Postage Rate (BPR) to increase from $1.50 to $1.70 on July 17, 2025.

“The BPR increase will help us address the rising cost of delivering letters,” Australia Post said in a statement.

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The price increase follows a 10.6 per cent drop in letter volumes during the first half of 2025 alone, resulting in an $83.7 million loss for the postal giant’s letter division, Australia Post confirmed.

Once a core service, personal mail has been all but replaced by digital communication, with around 97 per cent of all letters now sent by government or business entities.

The average household receives just two letters per week, and letter volumes are projected to halve again within five years, Australia Post said.

“Letter volumes are now at levels not seen since the 1950s,” Australia Post noted.

Despite these trends, the postal service is required to maintain a national delivery network.

More than 200,000 new delivery points are added every year, even as demand dwindles, Australia Post said.

What it means for Australians

For most Australians, the impact will be small.

Households typically purchase just five to six full-rate stamps per year, meaning the increase will cost an extra $1.20 annually on average.

To soften the blow amid cost-of-living pressures, concession and seasonal greeting stamps will remain unchanged at 60 and 65 cents, respectively.

Charities will also retain access to discounted rates.

Self-funded enterprise under pressure

Australia Post stressed it remains a self-funded government business enterprise, meaning it receives no direct government funding and must cover its costs through revenue alone.

“We are focused on addressing our financial challenges in a responsible way, so we can continue delivering essential services to communities across Australia,” the postal service said.

The ACCC, while giving the tick of approval to the July increase, noted that even with the 20-cent rise, Australia Post is unlikely to fully recover its losses in the letters business.

The Commission has urged the organisation to improve its forecasting, cost modelling, and regulatory reporting in future pricing proposals, citing its monopoly over reserved letter services and the need for financial discipline in the absence of market competition.