Approval for dearer postage unlikely

The competition regulator has said it will reject plans by Australia Post to increase the price of basic postage stamps from 55c to 60c.

Australia Post is relying on the price rise to recover a large decline in earnings this year due to a fall in letters posted.

In October, Australia Post reported a decline of 40% in profit and already under pressure from alternative email services.

Star Track Express which Australia Post owns with Qantas, posted a 29% fall in revenue for the year ended June 30 as freight volume also declined.

In addition, Australia Posts’ other investments include Australian Air Express, with Qantas, also declined in the same period.

Source: Sydney Morning Herald.