The post office asked the consumer watchdog on Friday to consider allowing the cost of stamps to rise 8.8 per cent from $1.70 to $1.85, bringing prices closer in line with comparative countries.
Large letters up to 125 grams would increase from $3.40 to $3.70 and letters between 125 and 250 grams will rise from $5.10 to $5.55.
Plummeting mail volumes are being blamed for the need to hike lift prices.
Outside of last year's federal election, letter numbers dropped more than 11 per cent in the last financial year, to levels not seen since the 1930s.
It left Australia Post more than $230 million out of pocket to provide the letter sending service, even including the increased traffic from postal voting.
Stamp prices have surged in recent years, having been $1.10 in 2022 and $1.50 in 2024.
Despite the 68-per-cent leap, the post office insists Australian stamps among the most affordable among major economies.
Based on purchasing power parity, the OECD average is $2.60, with New Zealand more than doubling prices since 2020.
Plus the average Australian, buying five stamps a year, will barely notice the change.
The 15-cent hike is hoped to halve letter losses to $85.7 million, Australia Post says.
"As letter volumes continue to fall as customers increasingly take up digital options, Australia Post needs to ensure the letters service remains sustainable," Australia Post chief executive Paul Graham said.
The cost of concession and seasonal stamps will not rise under the proposal, staying at 60 and 65 cents respectively.
The Australian Competition and Consumer Commission will assess the proposal and has called for consumer and business feedback.
"The feedback we receive will help inform our consideration of Australia Post's proposal, with a preliminary view to be released in the coming months," Commissioner Anna Brakey said.
Australia Post has forecast further 20-cent stamp hikes in both 2027 and 2028.
Communications Minister Anika Wells has the final say on whether the increase can go ahead.
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