Australia Post Prices Hike to $1.85, Parcel Fees Up 5% from July 1: The Cost of Sending Just Got Heavier

Australia Post prices are increasing from July 1, with stamp costs rising to $1.85 and parcel delivery fees climbing by an average of 4.95%. The Silicon Review examines what this means for families and businesses already stretched thin.

From July 1, posting a letter will cost you more. Sending a parcel will cost you more. Getting an ID photo taken? That costs more too. Australia Post prices are rising across the board, and for millions of Australians, the cost of staying connected just got heavier.

The basic postage rate for a small letter climbs from $1.70 to $1.85 an 8.8 per cent increase approved by the ACCC. Large letters up to 125 grams will cost $3.70, up from $3.40, and letters between 125 and 250 grams rise to $5.55. A pre-paid medium post bag jumps from $15.65 to $16.40, while ID photos will cost $23.50 instead of $22.99.

Parcel delivery fees are increasing by an average of 4.95 per cent for retail customers and 4.25 per cent for contract customers. MyPost Business pickup services will rise 9.7 per cent, while unaddressed mail services increase by 18.4 per cent. International parcels and letters will go up by an average of 3.75 per cent.

Australia Post blamed "record operating costs" and "sustained increases in processing and delivery costs" for the price hikes. The government-owned postal service said it had absorbed costs where possible, including keeping core parcel price increases below inflation for contract customers over the past two years. The ACCC assessed the stamp price increase and decided not to object, finding Australia Post's reserved letter service revenue is unlikely to exceed its efficient costs.

Here is the truth about these price hikes. Australia Post is struggling. Letter volumes are declining by approximately 10 per cent annually. The company is losing money on its letter service. Meanwhile, the cost of delivering parcels keeps rising. The only way to stay afloat is to charge more. But when families and businesses are already struggling with cost of living pressures, another price increase feels less like a necessity and more like a betrayal.

Small businesses will bear the brunt. Gold Coast baby goods shop Tiny Trader told customers it could no longer absorb rising shipping costs. "We've held off increasing our rates for as long as possible. Unfortunately, it's no longer sustainable for us to continue absorbing these rising costs."  Australia Post said the price increases affect about 17,000 contract customers, while MyPost Business and retail customers face the 4.95 per cent average increase.

On the same day, Australia Post announced a decrease to its fuel surcharge from 19.5 per cent to 12.3 per cent for contract customers, reflecting recent movements in fuel-related costs. But that small relief is likely to be swallowed by the broader price increases.

As Australia Post prices hike from July 1, The Silicon Review asks a final question. When the cost of sending a letter and parcel keeps climbing, how long before the postal service becomes a luxury only the well-off can afford?

FAQ:

Q: When do Australia Post prices increase?
A: Australia Post prices increase from July 1, 2026, following the annual price review.

Q: How much will stamps cost after the Australia Post prices hike?
A: The basic postage rate for a small letter will increase from $1.70 to $1.85, an 8.8% increase. Large letters up to 125g will cost $3.70, and between 125-250g will cost $5.55.

Q: How much will parcel delivery fees increase under Australia Post prices?
A: Parcel delivery fees will increase by an average of 4.95% for retail customers and 4.25% for contract customers.

Q: What other Australia Post services are affected by the price hike?
A: ID photos will increase to $23.50, MyPost Business pickup services rise 9.7%, and unaddressed mail services increase 18.4%.

Q: Why are Australia Post prices increasing?
A: Australia Post cited "record operating costs" and "sustained increases in processing and delivery costs" as the reason for the price hikes.

Q: Will the Australia Post fuel surcharge also increase?
A: No, the fuel surcharge will decrease from 19.5% to 12.3% for contract customers from July 1, reflecting recent movements in fuel costs.