Some of Australia's postal services will rise next month. (photo by Pioneer Sun)
In spite of a rise in after-tax earnings at Australian Post (Australia Post), the company decided to raise the price of some of its services.
Starting next month, Australia Post will increase the cost of domestic and small parcels, prepaid express letters, and some international mail and e-mail redelivery and retention services, the Pioneer Sun reported.
It is understood that from October 2, the cost of delivery of domestic parcels in Australia will be increased by 35 cents or more according to size. The shipping cost for a single 500-gram small package will rise from A $10.85 to A $11.35.
The cost of international mail to Europe, the United Kingdom, and the United States will rise to A $3, up 5 cents from the original price. Speedletter prices will rise from A $6.1 to A $6.4.
The cost of resending letters over a three-month period rose from A $46.35 to A $53.1, while the cost of a two-week period rose from A $30.85 to A $35.3.
The good news is that stamp prices remain the same for Christmas cards or business letters sent in Australia.
While Australian Post posted after-tax earnings of A $95 million, up from A $36 million in 2016, a spokesman for the company said the increase was mainly due to higher delivery costs. The spokesman said it was the first time in nearly 12 months that Australian Post had raised the price of its service products. While price increases are not easy for customers to accept, postal services have tried to ensure that prices for most popular products remain unchanged, including seasonal domestic greeting card mailing charges.
Downer (Erin Turner), of Choice, a consumer rights group, said Australians often encounter problems with rising costs. Whether it's big banks or Australian Postal, these companies can pay big bonuses for management, but they can't profit customers. The Australians are used to this unfair situation. Downer believes that small price increases are reasonable, but a significant increase in prices will hit users and affect their budgets.