Australia Post stamp price increase

By political reporter Stephanie Anderson

 The cost of sending a letter by regular mail has increased from 70 cents to $1, though concession cardholders can still access stamps for 60 cents. (ABC News: Giulio Saggin)

RELATED STORY: 70c stamps could cost $1 under Government plan for Australia Post

MAP: Australia

Australia Post's mail service is on course to remain unprofitable, despite increased costs to mail services coming into effect today.

The cost of sending a letter by regular mail has increased from 70 cents to $1, though concession cardholders can still access stamps for 60 cents.

Australia Post spokesperson Michelle Skehan said the changes come after the number of stamp letters fell by more than 10 per cent last year.

But Ms Skehan said the increases would not make up for the beleaguered service's $381 million losses.

"While the stamp price increase and services changes introduced today will reduce the losses, they will not return stamp mail to profit," she said.

"Mail volume continues to decline."

Regular mail will take up to six business days for delivery, though Australia Post is also offering a priority service — with delivery within one to four business days — for an additional 50 cents.

Seasonal greeting cards are exempt from the increase — the fifth in 23 years — and will remain at 65 cents