The price of sending a standard letter in Australia could soon rise again, with Australia Post backing a preliminary decision by the consumer watchdog not to oppose an increase in stamp prices.

Australia Post is seeking to lift the basic postage rate for reserved ordinary letter services from $1.70 to $1.85 as it continues to grapple with falling mail volumes and mounting losses across its letters business.

The proposed increase was submitted to the Australian Competition and Consumer Commission (ACCC) in December 2025 as part of a draft price notification process.

Australia Post said traditional mail use had continued to decline as Australians increasingly turned to digital communication, with letter volumes falling by a further 11.7 per cent in the 2024-25 financial year, excluding election activity.

The postal service said letter volumes were now at levels “not seen in Australia since the late 1930s”.

According to Australia Post, consumers now account for fewer than 3 per cent of all letters sent, with most mail generated by businesses and government agencies.

The organisation said the proposed increase would have only a minor impact on households, estimating the average Australian home purchases about five full-rate stamps each year, equating to an additional annual cost of about 75 cents.

Australia Post also pointed to international trends, stating that postal operators across the world were facing similar declines in traditional letter services.

Concession and seasonal greeting stamps would remain unchanged under the proposal, staying at 60 cents and 65 cents respectively.

Australia Post has also expanded the number of concession stamps eligible customers can purchase annually, increasing the allocation from 50 to 75.

The ACCC has now opened a further consultation period before making a final decision on the proposal.

If the regulator ultimately does not object, Australia Post will formally apply for the price change and provide customers with at least 30 days’ notice before any increase takes effect.

Australia Post said it remained focused on maintaining an accessible letters service while adapting to the ongoing structural decline in mail volumes.