They reorganised sorting here a few years back too.
It can be kinda dumb sometimes since a package sent from rural in my state goes to Melbourne first before coming to the city close to me, even if the sender's location is actually closer to me than Melbourne.
But I understand why they did it. It's cost cutting and improves efficiency of processing.
Some package arrival times can be longer compared to the old days as a result, but moving stuff all around the country is generally better overall.
Prices went up a tiny bit I think start of this year. They also automated detection of underpaid postage in sorting centres.