THE cost of stamps will increase and regular postage services will slow down from January, 2016.
Postage is set to increase to $1.50 a letter from January 4 for mail scheduled to arrive within one to four business days, and $1 for a slower regular delivery service, after Australia Post received another green light in implementing major changes.
The Australian Competition and Consumer Commission announced in November it had no objections to the draft proposal.
Australia Post will now lodge a formal notification of the price changes, and seek formal approval from the Communications Minister.
Concession card holders who register with Australia Post will still be able to mail a letter for 60c using the regular service, which will take up to two days longer than the priority service.
To post a priority letter, customers will need to purchase a priority label for an extra 50 cents.
"We have now secured the two reforms essential to ensuring a sustainable letters service - for our people, our customers and the community," Australia Post managing director Ahmed Fahour said.
"The decision by the ACCC to not object will allow Australia Post to continue to support over 4,000 Post Offices which provide an excellent service to the Australian community.
"Post Office licensees will receive, on average, a $25,000 boost per annum, which is part of the additional $125 million increase in annual payments that Australia Post has committed to for the Licensee network.
"It will also allow Australia Post to recover more of the cost of the service while maintaining five-day a week delivery and continuing to meet our important Community Service Obligations."
The ACCC concluded that a forecast sustained decline in letter volumes meant it was unlikely the price increase would recover revenue in excess of costs for Australia Post in 2017-18.
Concession details at http://auspost.com.au/parcels-mail/concession-stamps.html