Licking a stamp for an envelope could cost more after the regulator flagged allowing price increases by Australia Post.
The Australian Competition and Consumer Commission has formed a preliminary view not to oppose a 13.3 per cent rise in the price of stamps within months.
If granted, an ordinary small letter would increase in price by 20c from $1.50 to $1.70, large letters from $3.00 to $3.40 and ordinary letters between 125g and 250g from $4.50 to $5.10.
The increases in mid-2025 would be the third by Australia Post within the last four financial years. The basic postage rate at the beginning of 2022/23 was $1.10.
The average Australian household sends six letters per year and the increase in cost would be about $1.20.
The regulator's draft price notification also includes a future path, forecasting 15-cent increases to the basic postage rate in mid-2026 and in 2027, which puts the 2027/28 cost to post at $2.00.
Australia Post is not likely to profit from its letter service even with the proposed price increases, the regulator said.
"The ubiquity of digital communication options has impacted the commercial viability of letter delivery globally," ACCC Commissioner Philip Williams said.
Its assessment seeks to balance the needs of consumers and the sustainability of the letter service, he said, adding that the ACCC was very conscious that price rises could present affordability challenges for some.
Australia Post welcomed the commission's preliminary view.
"The proposed price increase will help Australia Post address losses in this part of the business as it continues to deliver for its customers and communities," it said.
Letter services have declined by an average of five per cent per year for the better part of a decade, and are expected continue dropping at a steeper rate in the years ahead.
Australia Post loses money on the letter services, but that is eclipsed by revenue from parcel delivery that has risen since the COVID-19 pandemic as more people switch to online shopping.
More than 80 per cent of its $5 billion half-year revenue came from parcels and services, and it delivered a record 102.8 million packages in 2024.
The commission is seeking stakeholder feedback on its preliminary view on stamp prices.
