Postage stamp costs in Australia just got an update, and if you are a small business owner or someone who sends a large number of letters, then you should take note. The changes came into effect as of July 17, 2025, according to The Guardian.
It may not seem like a big change for one letter, but if you don’t plan well, then the expenses will pile up faster than your letter reaches its destination. Let’s take a look at the latest prices and how they impact domestic and international letters in this detailed guide.
Key Takeaways
- Basic postage rates in Australia have increased from $1.50 to $1.70, effective from 17th July 2025.
- Larger domestic letters also witnessed an increase, with letters up to 125g increasing to $3.40, up to 250g rising to $5.10, and up to 500g reaching $8.50.
- International letters and parcels also saw an increase in price depending on zones, with an approximate 5% rise in letters and 3% in parcels.
- Prices of concession stamps (60c) and seasonal greeting stamps (65c) remained the same.
- Even with the price increase, the postage stamp rates in Australia remain lower than the OECD average of $1.93.
- DTDC Australia’s tailored courier services offer a faster and more cost-effective alternative to postage.
Current Postage Stamp Cost in Australia
After the update, the cost of postage stamps for small letters increased from $1.50 to $1.70 in Australia, which means a hike of 20c. This is a smaller increase compared to the last update on 3rd April 2024.
Moreover, the rates are still lower than similar services in other OECD countries, where the median rate is $1.93. And the price hikes are not applicable to concession stamps and seasonal greetings stamps.
- Concession Stamp: $0.60 (unchanged)
- Seasonal Greeting Stamp: $0.65 (unchanged)
2025 Postage Price Changes for Different Types of Postage
Postage Price for Sending Letters Within Australia
Prices of basic postage stamps have increased to $1.70, which is for one stamp. The total postage stamp cost will depend on the number of stamps used for the letter, which in turn depends on the size, thickness, and weight of the letter.
A small letter or postcard requires only one stamp, so the total postage cost is $1.70. At the same time, a large letter involves a minimum of 2 postage stamps, which brings the cost to a minimum of $3.40.
Large letters weighing between 125g and 250g require three stamps, and those weighing between 250g and 500g need five stamps.
| Letter Size | Old Price | Current Price | Price Change |
| Small letter (up to 250g) and Postcard | $1.50 | $1.70 | $0.20 |
| Large letter (up to 125g) | $3.00 | $3.40 | $0.40 |
| Large letter (up to 250g) | $4.50 | $5.10 | $0.60 |
| Large letter (up to 500g) | $7.50 | $8.50 | $1 |
| Concession stamp (booklet) | $0.60 | $0.60 | No change |
| Seasonal greeting – small / Christmas cards (up to 250g) | $0.65 | $0.65 | No change |
| Seasonal greeting – large (up to 125g) | $1.30 | $1.30 | No change |
While domestic letters saw a direct increase in cost, international postage also witnessed a big change, depending on the destination zone.
Postage Price for Sending Letters Overseas
Changes to the prices of international letters came into effect on 1st July 2025. Shipping overseas witnessed an approximate increase of 5% for letters and 3.25% for parcels.
| Destination Zone | Small Letters | Large Letters |
| Zone 1: New Zealand | $3.00 | $10.30 |
| Zone 2: Asia Pacific | $3.50 | $11.75 |
| Zone 3: US and Canada | $4.10 | $14.25 |
| Zone 4: UK and Europe | $4.35 | $15.05 |
| Zone 5: Rest of the World | $4.80 | $16.55 |
The postage stamp cost to Europe and the UK increased from $3.70 to $4.35 in the latest update. The greeting cards, including Christmas cards, cost $3 across all the zones.
Extra Postage and Saving on Postage
How Do I Know if My Envelope Needs Extra Postage?
Extra postage charges are required when your letter exceeds certain conditions, such as:
- Weight exceeds the limit for a small letter (250g).
- Size is larger than 260mm x 360mm or thicker than 20mm.
- When you are sending it overseas, extra charges are levied depending on the zone.
- Adding extra services like Express Post or Registered Post.
We know that staying within these limits can be tough, which means extra postage, but there are some smart ways to save on your postage costs.
Saving on Postage Costs
- Using concession stamps: If your package is eligible for a concession stamp, then use it, as it remains at a low cost of 60c.
- Bulk stamps: For businesses, using bulk stamps or prepaid envelopes can provide a better per-rate, especially for e-commerce businesses.
- Plan ahead: Increases in postage costs for letters are notified well in advance. Plan your budget and shipments accordingly.
Even with these strategies, frequent senders may still find the overall postage cost high. In such cases, courier services like DTDC can be a cost-effective option.
When To Choose DTDC Australia Over Traditional Postage
With steadily increasing prices and growing customer demands, small businesses should look beyond traditional postage. For instance, DTDC Australia courier services offer attractive rates with real-time tracking and faster deliveries.
We are partners with Australia Post, and you can compare the prices yourself on our website. Moreover, letters that are more than 500g are considered parcels by Australia Post, resulting in an increase in cost.
Our services will not impose such limitations on you, as they are specially tailored for regular and bulk shippers to save more compared to postage and parcels.
Frequently Asked Questions (FAQs)
How much postage is needed for a regular letter?
The cost of postage stamps to send a small letter domestically in Australia is $1.70 as of 17 July 2025.
Can I use old stamps in Australia?
Yes, old stamps are still valid in Australia, but you should ensure the total postage stamp cost covers the new rates. For instance, if you have a $1.50 old stamp, you should add an extra $0.20 stamp to bring the total cost to $1.70.
Who can use concession stamps?
Concession stamps are only available for use by eligible concession card holders in Australia. They cost just $0.60 and are limited to small domestic letters weighing up to 250g.
How many stamps are on an A4 envelope?
An A4 envelope usually falls under the large letter category, and the number of stamps will depend on the weight of the letter. Additionally, the postage stamp cost for an A4 envelope depends on the number of stamps.
What happens if postage is not enough?
Your postage may be returned to you, or the receiver may have to pay the extra postage.
What size envelope does not require extra postage?
A standard envelope or a small letter that matches all the conditions below only needs one stamp of $1.70:
- Maximum size: 260mm x 360mm
- Maximum thickness: 20mm
- Maximum weight: 250g
Anything above requires extra postage.
Final Thoughts
After the 2024 update, postage stamp costs in Australia saw the most significant increase in recent years in mid-2025. With careful planning, utilising concession rates, and knowing the service tiers, you can manage these increased costs.
For businesses, partnering with a reputable shipping partner is better, as this will help in developing a tailored postage strategy. And with this, you will be better equipped to tackle changes in postage prices.
