Australia Post has called for an increase in stamp prices after its revenue plunged at the fastest rate on record in its 210-year history.

Managing director Christine Holgate said Australia Post would need to seek approval from the federal government for a moderate increase in the price of postage stamps.

Holgate said the price would only be lifted “in line with inflation” without exceeding it.

“Everyone is cognisant of the cost of living so we would not want to in any way to be different to that,” she told Business Daily.

Last year, Australia Post logged $118 million in profit for the six months to December, falling 45 per cent from the previous year.

Holgate said the shrinking volume of letters being sent out in Australia contributed to the decline in profits. According to Australia Post, since 2016, letter volumes have declined by 800 million.

“We are now working in an environment with considerably less profit from letters,” she said.

“Australia Post will deliver more than two billion letters to almost 12 million homes and businesses this year. Although it is shrinking, letters is still viewed as a critical service by the overwhelming majority of Australians.”

While revenues from letters are down, Australia Post saw revenue growth in domestic parcels. Letter revenues dipped 10 per cent or $125 million, while revenues from parcels were up 10 per cent or $147 million.

The price for a standard stamp was last increased in January 2016, from 70c to $1. Customers took to Australia Post’s Facebook page to protest the price hike. “$1 to send a letter. What a joke!” one wrote. 

“40% increase on passage stamps. Goodbye Australia Post! Way to compete, NOT!”

Will the increase in stamp prices stop you from sending letters? Let us know in the comments.