Australia Post will raise the price of parcel and package delivery services by as much as 10 per cent from July, citing soaring costs and ballooning group losses as the main reasons for the hike.

In the year to June 30, Australia Post recorded an overall before-tax loss of $200 million, but its letter delivery business alone lost $384 million, a 50 per cent increase on the previous year.

"However, further reform is required for Australia Post to become a financially sustainable business," it warned. AAP Posted Fri 1 Mar 2024 at 4:27am Friday 1 Mar 2024 at 4:27am Fri 1 Mar 2024 at ...

Australia Post's overall profit after tax came in at $40.6 million, and group revenue grew 2 per cent to $6.99 billion thanks to growth in the parcels and services business.

Australia Post will only be required to deliver letters every second day, enabling the corporation to deliver more parcels and stem its financial losses.