Australia Post increases postage rates

Australia Post welcomes ACCC decision

Australia Post has welcomed the Australian Competition and Consumer Commission (ACCC) preliminary view that they have no objection to price rises to some bulk business mail services from 4 July 2011.

There has been no change to the 60 cent basic postage rate as these changes only apply to bulk business mail customers.

The ACCC's preliminary view reflects Australia Post's agreement to reduce the price rise for Off Peak mail to 0.9 cents following customer consultation.

This is only the third general increase to PreSort since 1992, with the key PreSort price having risen by less than 1 cent since 1992. This represents only a 1.5 per cent price increase; by comparison, the Consumer Price Index (CPI) for the same period has increased by more than 64 per cent.

"We think it's a modest price increase that is fair and reasonable given the current pressures facing us," said Executive General Manger Postal Services Jim Marshall.

"Every year we are increasing our delivery points by 200,000 new addresses and predict that in 10 years it will be the equivalent of another Queensland being added to our delivery network. At the same time, costs keep increasing, and letter volumes continue to decline, with our letters business losing over $170m last financial year.

"For a business that sends out 2,000 small letters each year, the extra cost will be around $30 per annum, which will have minimal impact on most bulk customers' businesses.

"While the increase will vary, we predict the average increase for business customers will be around 3.8 per cent," Mr Marshall said.

Following the recent fuel surcharges announced by other transport companies, Australia Post has also introduced a fuel surcharge in July to cover the increase in the cost of fuel in recent times. This surcharge is equal to a 1 per cent increase in price, however it will not apply to domestic letters or affect the 60 cent stamp.

These changes have been made effective as of 4 July 2011, and are aligned with general price changes in the new financial year, for: