Australia Post wants to lift the price of stamps for ordinary small letter services from $1 to $1.10 because its basic mail service is losing $190 million a year.
Postage for ordinary large letters delivered at the regular timetable would rise by 10 per cent.
The national postal service has submitted its proposal for assessment by the Australian Competition and Consumer Commission which can object to the proposal, but does not have any role in approving a price increase.
Stamps for the basic postage rate charged for ordinary small letters delivered to Australia's regular timetable last increased in price in 2016.
Last year our letters business lost $190m - this is after the benefit of significant efficiency savings
- Christine Holgate, Australia Post
Australia Post has no plans to change the price of priority labels for delivering ordinary letters at the priority timetable, which is 50c.
It will also maintain concession stamps at 60c and stamps for seasonal greeting cards at 65c.
"Last year our letters business lost $190m - this is after the benefit of significant efficiency savings," Australia Post chief executive Christine Holgate said in a statement.
"It is important that we responsibly address pricing if we are to protect this important service and keep our network of community post offices open."
In addition to the ACCC's assessment, Australia Post must give written notice to the Minister for Communications of its intent to vary its rates of postage.
Australia Post may increase the basic postage rate only if the Minister does not disapprove the proposed increase to the basic postage rate within 30 days.
Ms Holgate said increasing the price would enable Australia Post to continue keeping regional and remote post offices open and maintain letter delivery five days a week.
"Our posties deliver to more than 12.1 million addresses across the country," she said.
The ACCC has requested public submissions on the proposal.
"We will take into account the views of industry stakeholders, consumers and Australia Post itself," said ACCC Commissioner Cristina Cifuentes.
"In assessing these proposed price increases, we will consider various issues including trends in the postal industry and whether Australia Post has adequately explored efficiency improvements before increasing its letter prices".
The ACCC intends to release its preliminary view on Australia Post's draft proposal in November.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
