Australia Post is facing a financial challenge, and their proposed solution is a price hike. The cost of a standard stamp could go up by 15 cents, from $1.70 to $1.85, by mid-2026. This comes after the company reported a significant $230 million loss due to falling mail volumes.
The Financial Strain on Australia Post
The struggle is real for Australia Post, as fewer people are sending physical mail. Digital communication has taken over, leaving traditional mail services behind. Despite efforts to save costs, Australia Post has seen its losses pile up. In 2025, they reported a $230.4 million loss in their letters service sector alone, underscoring the financial difficulties faced by the company.
A major factor driving the losses is the drop in the volume of letters, reports Yahoo Finance. Australia Post points out that less than 3% of all letters now come from individuals, with the rest being business or government-related. As more Australians shift to emailing, texting, and online services, the need for physical mail continues to decline.
To offset these losses, the proposed price increase aims to generate more revenue. A 15-cent hike in stamp prices might seem small, but it’s still a challenge for consumers who already face higher living costs. This isn’t the first price increase, either—just last year, the cost of a stamp went from $1.50 to $1.70. The question remains: will this be the final price increase, or is Australia Post stuck in a cycle of rising prices?
No Change for Concession and Greeting Stamps
For those who rely on cheaper stamps, there’s some good news. The price of concession stamps and seasonal greeting cards will remain the same, helping to protect low-income Australians from the hike. The price for these stamps will stay at 60 cents and 65 cents, respectively, with no changes.
Australia Post has also made an effort to ease the impact on vulnerable groups. The Australian Competition and Consumer Commission (ACCC) recommended increasing the number of concession stamps available per customer, which is now up from 50 to 75 stamps per year.
Impact on Consumers
While the price increase might seem small at first glance, it could add up for Australian households. For many, the rising cost of living already feels like a heavy burden. So, while the hike is aimed at ensuring the future viability of Australia Post, the bigger question is whether consumers will continue to accept higher postage costs without demanding changes to the service itself.
As Australia Post navigates its financial challenges, it’s clear that the future of postal services in Australia will need to evolve. The company will have to strike a balance between maintaining service levels and keeping prices affordable, especially for the most vulnerable.
