But, the Australian Competition and Consumer Commission says Australia Post is not proposing to increase the price of priority labels (50 cents), concession stamps (60 cents) or stamps for seasonal greeting cards (65 cents), such as Christmas cards.
And the proposed basic postage price increase needs Government approval before it can go into effect.
“We are satisfied that the proposed price increases are unlikely to result in Australia Post recovering more than its cost of providing monopoly letter services, given the forecast decline in letter volumes,” ACCC Commissioner Cristina Cifuentes said.
“Although Australia Post has exceeded the efficiency targets it set for its monopoly letter services in 2015, it has not yet attained the efficiency levels of comparable overseas postal operators, but is on a path to bridging the gap,” Ms Cifuentes said.
“The ACCC will continue to monitor Australia Post’s progress in this area in considering any future proposal for price increases.”
The ACCC says it will release a final decision after it receives a formal price notification from Australia Post, expected in December 2019.