Australia Post to hike prices: How much more you will pay to send a letter

By KYLIE STEVENS, SENIOR BREAKING NEWS REPORTER, AUSTRALIA Published: 06:28, 29 July 2026 | Updated: 06:28, 29 July 2026 Aussies will soon have to fork out 15cents more to post a letter as the country's postal service prepares to jack up prices.  Australia Post will proceed with a proposed price hike on basic postage rates after the consumer watchdog ruled on Wednesday that it would not intervene.  The cost of a stamp to post a small letter will increase from $1.70 to $1.85 - an 8.8 per cent increase. The cost of large letters up to 125g and letters between 125g and 250g will also increase from $3.40 and $5.10 to $3.70 and $5.55 respectively.  Concession and seasonal greeting stamps will remain unchanged at 60 and 65 cents respectively. It comes after Australia Post increased the annual allocation of concession stamps for eligible consumers from 50 to 75, following an Australian Competition & Consumer Commission recommendation.  The price hikes will come into effect on September 1, unless Communications Minister Annika Wells overrules the decision in the next 30 days. The price of a stamp has more than doubled in the last 12 years, when it cost 70 cents in 2014. The price of a sending a letter will increase from $1.70 to $1.85 on September 1 Australia Post attributed the latest price hike to an ongoing decline in letter volumes, which have reached levels not seen in Australia since the late 1930s The most recent price hike was in 2025.  Australia Post attributed the latest price hike to an ongoing decline in letter volumes, which have reached levels not seen in Australia since the late 1930s. It estimates volumes to keep falling by about 10 per cent annually in the next few years. 'Today, fewer than three per cent of letters are sent by consumers, with the majority mailed by businesses and government agencies,' a statement read. 'On average, Australian households purchase five full-rate stamps each year and the cost impact of this increase is expected to be an extra 75 cents annually.' The decline is also experienced by international postal operators worldwide 'Our findings suggest Australia Post will still fall slightly short of recovering the efficient costs of providing these services, even with the proposed price increase,' ACCC Commissioner Anna Brakey said on Wednesday. 'Australia Post is getting closer to covering its costs for reserved letter services due to recent price increases and changes to Australia Post's delivery model. 'In response to recent ACCC recommendations aimed at increasing cost transparency, Australia Post has also made improvements to how it allocates costs between reserved letter services and the competitive parts of its business.'