Australia Post’s draft proposal to increase the price of stamps once again from 55 cents to 60 cents has been rejected by competition watchdog, The Australian Competition and Consumer Commission (ACCC).
The ACCC’s chairman Graeme Samuel says the proposal is not justified, and the competition watchdog has been unable to determine the relationship between demand and service cost.
“The relationship between demand and costs is a critical issue,” he noted in a statement.
“The ACCC recognises that some of Australia Post’s costs are fixed. However, overall, the cost base would be expected to respond as demand declines. The proposed costs of Australia Post in the material provided to the ACCC do not reflect this decline.
“Accordingly, the ACCC is unable to agree to Australia Post’s proposed price increases at present.”
Australia Post will now be given the opportunity to revise its pricing submission before seeking a final determination by the ACCC and the Federal Communications Minister.