Australia Post raises stamp prices amid declining mail volumes

Australia Post is implementing stamp price increases to combat rising costs and declining mail volumes. Prices are set to rise to $1.85, following previous increases, as the national carrier manages a $63.2 million loss in its letter service. To assist vulnerable citizens, concession stamps remain available for 60 cents for eligible pensioners and health care card holders.

While letter volumes have fallen to 1.42 billion annually, the company reported a pre-tax profit of $31.8 million, bolstered by record parcel and services revenue of $8.01 billion. Despite the growth in e-commerce, CEO Paul Graham noted that margins are being squeezed by global competitors like Amazon.

To balance the books, Australia Post is adjusting its delivery frequency. The company has already moved toward every-second-day delivery and may eventually transition to deliveries every three days or once a week as mail volumes continue to decline.