The cost of postage stamps is expected to double to $1.50, and could rise as high as $2 within three years, under a two-tiered pricing system being considered by the Abbott government.

But Fairfax Media understands the government has stalled on plans to loosen the regulations governing Australia Post because of concerns about a political backlash to increased stamp prices.

Although Communications Minister Malcolm Turnbull finalised an Australia Post rescue package several months ago, the reforms have not made it onto the Cabinet discussion paper this year. This means any changes will not be approved until February at the earliest.

This is despite repeated calls from Australia Post management for urgent government action and signals from the Labor Opposition that it is prepared to offer a bipartisan approach on the issue.