The Australian Competition and Consumer Commission has decided to not object to Australia Post’s proposal to increase the prices of ordinary letter services, including the basic postage rate from 60 cents to 70 cents.
“The ACCC found that there is increasing financial pressure on Australia Post’s letter services as a result of fewer letters being sent. Australia Post is currently under recovering on its reserved services costs. The magnitude of the under recovery is such that even with the proposed price increase, Australia Post is unlikely to recover more than an efficient level of costs.” ACCC Chairman Rod Sims said.
Mr Sims explained that Australia Post plans to freeze the price of a basic stamp at 60 cents until 2017 for consumers with an Australian Government concession card.