Postage rate increase

Australia Post has announced today that it has lodged a draft notification with the ACCC seeking an increase in the BPR from 70 cents to $1.The $1 rate will apply to the "regular" service.Australia Post has stated that the price of the "priority" service will be set after the new BPR is established, but it has been publicly speculated that the priority service will be priced at $1.50.Several LPO mail payments are linked to the BPR. Should the increase be approved, those payments will increase.At POAAL meetings around Australia over recent months, Licensees have said they can see that a price increase will give their businesses a short-term boost, but they are worried what the long-term effect on stamp sales might be.Licensees are concerned that the slower “regular” service might hasten the decline in letters volumes.POAAL has long stated that the letters service is in need of reform. Reform on its own, however, isn’t enough. Australia Post needs to find new income streams while reinforcing the value of the letter.If Australia Post fails to convince the public that $1 represents good value, then it could spell disaster for postage stamp sales.