The ACCC has released an issues paper seeking views on the draft proposal by Australia Post to increase the price of its ordinary letter services by 10 per cent.
Under Australia Post’s proposal, the basic postage rate for ordinary small letters would rise from $1.00 to $1.10. Prices for other ordinary letters of up to 250 grams would also increase by 10 per cent.
The ACCC’s assessment of Australia Post’s pricing proposal will focus on the:
- forecasts of letter demand and revenues
- efficiency of Australia Post’s letter operation and its progress in implementing business reform programs
- method by which Australia Post allocates costs between its services.
The ACCC is required to assess the proposed price increase in accordance with the Competition and Consumer Act 2010 and then notify Australia Post on whether it objects to the proposed price increase.
The ACCC does not have the role of approving the proposed price increase.
In addition to the ACCC’s assessment, Australia Post must give written notice to the Minister for Communications of its proposed price increase. Australia Post may increase the basic postage rate if the Minister does not disapprove the proposed increase.
The ACCC is seeking submissions by 13 September 2019 and will publish its response to Australia Post’s draft notification in November 2019.
The issues paper and Australia Post’s draft notification are available at: Australia Post - letter pricing 2019.