Australia Post wants to increase stamp prices by A10 cents next year to limit growing losses in its letter business.
The ABC reports that as letter volumes decline worldwide, the service says it is no longer financially sustainable to continue holding prices below inflationary levels.
In a submission to a Senate Committee, Australia Post says inflation has risen by 70% during the past 20 years while postage stamps have increased only by about 30%.
It says its letter business has lost more than $A400 million over the past three years, and increasing stamp prices would simply reduce the size of the loss.
Australia Post has suggested an increase of A10 cents in the price of stamps.
If the federal government accepts the request, the ABC reports the price of a stamp will be A70 cents.