A customer writing postcards looks at the choices of postmarks
A customer writing postcards looks at the choices of postmarks from the world's highest post office located at over 5200 metres (17060 feet), near the base camp of Mount Everest, also known as Qomolangma, in the Tibet Autonomous Region April 29, 2008. The post office services around 30 customers a day, and is only open for seven months of the year between April and October. Reuters/David Gray

Australia Post has lodged a proposal to increase the cost of the services it renders. The Australian Competition and Consumer Commission will be working on the proposal and evaluate the pros and cons of the same.

The proposal says the basic postage cost for letters to be delivered with new timetable strategy will cost $1. The novel strategy focuses on delivering letters by two extra business days. The rate of postal stamps, on the other hand, will increase to 70 cents so far as the current timetable is concerned. The agreement includes price rise for large letters as well, though no enhancement in the concession stamps or stamps that are put on seasonal greetings cards has yet been suggested.

“The ACCC’s role is to assess Australia Post’s proposed price increases. We will take into account various factors including how efficient it is in managing the impact of declining letter volumes and the extent to which price increases are required,” ACCC Chairman Rod Sims stated. He added, “The ACCC welcomes submissions on Australia Post’s proposal. In reaching its view, the ACCC will consider information provided by industry stakeholders, consumers and Australia Post.”

The ACCC is responsible for assessing the proposal and figuring out whether it is in accordance with the Competition and Consumer Act (2010) and is not limited to approving or disapproving the proposal. Besides ACCC’s assessment, it is also mandatory for Australia Post to give written notice to the Communications Ministry regarding price rise of letter services.

The ACCC is set to provide its final assessment report in December followed to the preliminary report in November. Australia Post can only increase its rates if the Communications Minister approved the hike to the Business Process Reengineering, or BPR, within 30 days of notification received from Australia Post, which will then take effect from Jan. 4, 2016.

The Australian government backed Australia Post’s introduced two-speed letter service for prioritised and regular posts.

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