Canada Post can set stamp rates

Summary#

This Order brings Division 2 of Part 5 of the Budget 2025 Implementation Act, No. 1 into force on June 22, 2026. It lets Canada Post change stamp and postage rates without needing prior approval from the Governor in Council, while keeping rules that rates be fair and cover operational costs.

What it does#

• Removes the requirement that the Governor in Council approve postage-rate changes under the Canada Post Corporation Act.
• Keeps statutory limits that rates must be “fair and reasonable” and should, together with other revenue, be enough to defray operational costs.
• Says Canada Post will use a notification and consultation process before increases, including Board review and written justification.
• Preserves specific protections mentioned during consultations, such as free postage for people who are blind or partially sighted and reduced rates for library materials.
• Replaces a longer approval path that included prepublication and a 30-day public comment period and could take four- to six-months with a faster internal process.
• Implements a change that the government says responds to a recommendation from the Industrial Inquiry Commission (report published in May 2025 and accepted in September 2025) and follows royal assent to the act on March 26, 2026.

Who's affected#

• Canada Post (the operator that will set rates).
• People and businesses that buy stamps or send mail — postage could change more quickly.
• Users of special postage categories, especially people who are blind or partially sighted and libraries, because protections for these groups are explicitly kept.
• Taxpayers and government finances indirectly, since the change aims to reduce Canada Post’s reliance on public money.
• It is unclear from the notice how often or by how much rates will change; those details depend on future actions by Canada Post.

Why it matters#

• Faster rate changes mean Canada Post can respond more quickly to rising costs or shrinking letter volumes (declining since 2006), which could help the corporation stay financially stable.
• For ordinary users, the practical effect is that postage increases might come with less advance regulatory delay, though the government says public notification and some consultation will continue.
• The Order balances faster decision-making with retained legal protections for affordability and certain vulnerable users, but the exact frequency and size of future rate changes remain to be seen.