The Australian Competition and Consumer Commission (ACCC) has announced that it will not object to Australia Post's proposed stamp price increase of 8.8%. This decision comes after the ACCC determined that Australia Post is unlikely to cover the costs of delivering its reserved letter services, even with the proposed price hike.

The price increase, effective from September 1, 2026, will affect various letter types, including small letters and large letters, with the basic postage rate rising from $1.70 to $1.85. However, concession stamps and seasonal greeting card stamps will remain unchanged.

Earlier this year, the ACCC recommended an increase in the annual allocation of concession stamps for eligible consumers, which was raised from 50 to 75. The ACCC's regulatory role involves assessing notifications of proposed price increases for Australia Post's reserved ordinary letter services, which are delivered on a regular timetable.

ACCC Commissioner Anna Brakey stated that the findings suggest Australia Post will still fall short of recovering the efficient costs of providing these services, despite the proposed price increase. The letter usage in Australia has been declining for nearly two decades, and Australia Post anticipates a continued drop in volumes by about 10% annually.

While the price increase is expected to add approximately 75 cents to annual postage costs for the average household, the ACCC acknowledges that businesses reliant on letter services will bear most of the additional costs and may pass these costs onto consumers.

The ACCC's decision not to object follows a thorough consideration of public feedback and submissions received during the consultation process. The ACCC's role does not include approving price increases; only the Minister for Communications has the authority to reject such proposals.