Australia Post parcel rate increases: what changed from 1 July 2026

Status: Now in effect. Issued: 26 May 2026. Updated: 29 July 2026. Affects: HotSnail customers using Australia Post domestic parcel forwarding, Express Post, return-to-sender, and international parcel forwarding.

Australia Post's annual retail price revision took effect on 1 July 2026. It covers domestic Parcel Post, Express Post and international parcels and letters. This alert covers the changes relevant to HotSnail customers -- specifically those who have mail or parcels forwarded to an Australian address, request return-to-sender items, or forward internationally.

Important correction. An earlier version of this alert stated that domestic letter and stamp prices rose on 1 July 2026. That was wrong. Ordinary letter postage did not change on 1 July. The Basic Postage Rate is regulated separately and rises from $1.70 to $1.85 on 1 September 2026 -- see our Australia Post stamp price increase alert for that change.

What Australia Post published

Australia Post announced its retail pricing and product changes on 28 May 2026, with effect from 1 July 2026. The published headline figures are averages across each product range rather than a per-weight-band schedule. The source is Australia Post's pricing update notice at auspost.com.au retail pricing and product changes.

• Parcel Post: postage prices increased by an average of 4.95 per cent.
• Express Post: postage costs increased by an average of 4.95 per cent.
• International parcels and letters: increased by an average of 3.75 per cent.
• MyPost Business pick-up: increased by 9.7 per cent -- the largest single movement in the revision.
• International Reply Coupons: withdrawn from sale from 1 July 2026. Coupons bought before that date can still be redeemed for stamps until 31 December 2026.

Australia Post publishes an average per product range, not a percentage per weight band. Any breakdown you see claiming a distinct figure for each individual weight band is not something Australia Post published -- price your own shipment from the current rate tables rather than applying a band-level percentage.

Domestic parcel prices from 1 July 2026

For parcels of 5kg or under sent within Australia in flat rate packaging, postage is based on size rather than weight. The prepaid satchel prices from 1 July 2026 are:

• Parcel Post prepaid satchels: extra small $10.55, small $12.05, medium $16.40, large $20.70, extra large $24.95.
• Express Post prepaid satchels: extra small $13.55, small $15.55, medium $20.40.

As a worked example, a medium prepaid Parcel Post bag (390mm x 270mm) went from $15.65 to $16.40 including postage -- a rise of 75 cents.

Letter rates did not change on 1 July

Domestic letter postage was untouched by the 1 July revision. The Basic Postage Rate -- the price of an ordinary small letter -- goes from $1.70 to $1.85 on 1 September 2026, an 8.8 per cent rise, following a price notification process overseen by the ACCC. Large letter rates move on the same date. Concession and seasonal greeting card stamps are not changing at all.

If you forward paper correspondence rather than parcels, the September date is the one that affects you. Full detail is in our stamp price increase alert.

Extra services such as Registered Post are priced separately again and were not part of the 1 July revision. The Registered Post fee is currently $5.85 per article applied at lodgement. Confirm the current figure on Australia Post's Registered Post page before budgeting for it.

What this means for HotSnail customers

HotSnail passes through Australia Post carrier rates at cost for forwarding. The revision is reflected in forwarding quotes inside the member portal from 1 July 2026. On an average 4.95 per cent movement the practical effect per parcel is modest -- the medium satchel example above is 75 cents -- but customers who forward regularly will see the cumulative difference over a quarter. The portal quotes your actual items at current rates, so use it rather than estimating from a percentage.

The services affected:

1. Domestic parcel forwarding. Any parcel forwarded to an Australian address via Parcel Post or Express Post dispatched on or after 1 July 2026 is quoted and charged at the new rates.
2. International parcel forwarding. International parcels and letters rose by an average of 3.75 per cent on the same date. If you forward overseas through Australia Post rather than DHL, this is the figure that applies to you.
3. Return to sender. Items marked for return are dispatched back to the sender at the letter or parcel rate for their size. Parcel-rate returns moved on 1 July; letter-rate returns move on 1 September with the Basic Postage Rate.

Customers who use HotSnail primarily to scan mail and read it digitally -- without requesting physical forwarding -- are not affected by this rate change. Scanning, opening, and shredding are priced by HotSnail independently of Australia Post carrier rates.

What to do now

1. Quote before you commit. Log in to members.hotsnail.com.au and run a quote on the items you want to forward. The portal reflects the current rates, so it is the authoritative number for your shipment -- more reliable than working from a published average.
2. Batch what has to be posted. Several items consolidated into one forward is cheaper than several separate dispatches, because you pay one postage charge instead of several. Setting a fortnightly or monthly cadence for non-urgent physical mail is the single biggest lever on your forwarding costs.
3. Switch non-urgent items to scan-only. For correspondence you only need to read -- statements, utility bills, newsletters -- changing the action from forward to scan-and-hold removes the carrier cost entirely rather than repricing it. Update individual item actions or set a sender-level default inside the member portal.
4. Plan for 1 September. If you forward letters rather than parcels, your increase is still ahead of you. Clearing a deferred letter-forward queue before 1 September dispatches at the current $1.70 rate.
5. Note what is not changing. HotSnail's monthly plan fees and storage fees are reviewed separately and did not change on 1 July 2026. Scanning, opening and shredding are HotSnail-priced actions with no postage component. The revision affects only the carrier pass-through on physical forwarding and return-to-sender dispatches.

Looking ahead

Australia Post revises retail prices annually with effect from 1 July, and its rate schedule has risen consistently each financial year. The 2026 movement was an average of 4.95 per cent on domestic parcels and 3.75 per cent on international. For businesses or individuals that rely on forwarding for regular correspondence -- ASIC documents, legal letters, bank mail -- budgeting for an annual rise in this range each financial year is prudent, while treating the exact figure as something to confirm at the time rather than assume.

Note also that letters and parcels now move on two different timetables: parcels each 1 July, and the Basic Postage Rate on its own regulated schedule. Australia Post's price notification flags indicative further BPR increases in later financial years, subject to the same ACCC process.

If you also use HotSnail for international parcel forwarding via DHL rather than Australia Post, see our DHL Express July 2026 rate alert for outbound international movements from Australia. For the letter-side change, see the stamp price increase alert.

Verify before you budget. Figures in this alert reflect Australia Post's published retail pricing update of 28 May 2026, effective 1 July 2026, and are current as at 29 July 2026. Confirm current prices at auspost.com.au pricing updates before relying on them.