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Australia Post to slug customers with hiked fees: ‘Changes are necessary’


Australia Post has blamed inflation for its decision to hike the price of parcel and package delivery services by as much as 10 per cent within weeks.

Australia Post executive general manager Gary Starr broke the news on Friday, with increases coming for a range of services including business letters and domestic parcels.

WATCH THE VIDEO ABOVE: Australia Post set to increase postage prices

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“We are an entirely self-funded business and so we have to make a profit and stand alone,” Starr said.

Customers will be slugged more to send a letter or parcel from July 3, meaning that posting a small satchel will now cost $10.60 and an extra large one $21.95.

Costs are up too for parcels being sent overseas.

The price hike is a bitter pill for small business owners who rely on Australia Post to deliver online orders.

“We personally have a flat rate with shipping so we absorb all of that extra that’s going to come from Australia Post now,” Taran Howard from Sydney small business Crystal Arcana said.

You might have to reconsider sending a letter or parcel to loved ones soon – or even splashing out on a bit of online shopping.
Credit: AAP

Australia Post expects to report a loss this financial year and in the past six months alone, its letters business has lost $190 million.

The service has blamed inflation and soaring global fuel prices for the increases and has not ruled more in the future.

“We do know that inflation will continue to be challenging in the coming months,” Starr said.

The price of stamps is not affected.

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Source: 7News