Australia Post To Raise Prices of Parcel and Package Delivery Services by Up to 10%

Australia Post announced on Friday that it will increase the prices of its parcel and package delivery services by up to 10 percent starting in July. The decision is attributed to rising costs and significant losses experienced by the company.

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In a notice to customers, Australia Post outlined the revised fees for various services, including business mail, domestic and international parcel services. The price hikes will range from 3.5% to 9.95%, depending on the specific product category.

“This is just dealing with the significant financial headwinds that we’re facing into – labor, energy, and fuel – like all businesses are seeing in Australia,” said Australia Post executive general manager of post, parcel and ecommerce services, Gary Starr.

As a result of the price adjustments, customers will encounter higher rates for services.

For instance, the cost of a small pre-paid parcel satchel will increase to $10.90 from $9.95, while a small express post satchel will rise from $12.95 to $14.40. Additionally, sending a standard-sized express post letter will cost $8.55 instead of $7.80.

The biggest headache for Australia Post is its letters business, which recorded a half-year loss of $189.7 million in the six months to December. The overall business will record a loss this financial year for the first time since 2015.

Starr emphasized the need for a balanced approach to offer quality products while addressing inflationary pressures.

The price changes will impact various services provided by Australia Post, including domestic and international parcel services, letters, unaddressed mail, mail hold, and photo ID services.

Further modifications to pricing could be considered later this year, pending the government’s review of the postal service’s modernization efforts.

The review sought input from consumers and businesses on measures to ensure the continued viability of Australia Post, including feedback on the basic postage rate and the price of individual stamps for regular letters.

Current regulations place limits on how high Australia Post can raise the price of an everyday stamp, but the government’s discussion paper highlighted that the price of stamps in Australia sits below what many other similar countries charge.

The new prices will go into effect on 3 July 2023.