Australian Post, facing a massive decline in people using its services, wants to charge $1 to send a letter.
The consumer watchdog, the ACCC, is assessing a proposal lodged by Australia Post to increase the price of its ordinary letter services, including stamps.
Australia Post wants a basic postage rate of $1 for letters delivered at a new timetable, which allows up to an extra two business days for delivery.
Stamps for letters delivered at the current timetable cost 70 cents.
The federal government recently regulated to allow the introduction of a two-speed letter service by Australia Post, a priority and regular delivery.
Australia Post, facing rapid declines in letter delivery, plans to cut 1,900 jobs over the next three years, mainly from voluntary redundancies.
The ACCC says it will look at the impact of declining letter volumes and the extent to which price increases are needed.
ACCC chairman Rod Sims said submissions are welcome on Australia Post’s proposal.
The ACCC intends to release a preliminary view on the proposal in November 2015 and a final decision in December.
Any new prices would take effect from January.
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