The Australian Competition and Consumer Commission today issued its final decision not to object to Australia Post's proposal to increase the price of the basic postage rate from 50 cents to 55c.
Australia Post must now give written notice of this change to the basic postage rate to the Minister for Broadband, Communications and the Digital Economy. The Minister has the power under the Australian Postal Corporation Act 1989 to disapprove proposals to vary the basic postage rate within 30 days after receiving written notice.
The ACCC has also decided not to object to Australia Post's proposal to increase other letter prices, including large ordinary letters, and small and large PreSort Bulk Mail.
"The ACCC has decided not to object to Australia Post's proposal because the proposed price increases do not involve Australia Post over-recovering the costs of providing these letter services," ACCC Chairman, Mr Graeme Samuel, said.
"The ACCC did identify a concern that Australia Post's current proposal did not provide sufficient certainty for some customers. Therefore, in its decision, the ACCC has established a framework for future price notifications that will encourage Australia Post to continue to reduce costs, improve productivity, and provide more certainty for Australia Post's customers."
Australia Post proposes to increase postal prices with effect from 15 September 2008. The previous price increase was in 2003.