Questions and answers for price and product change 2018

On 1 July 2018, we will adjust the prices of some of our products and services.

What is changing?

From 1 July 2018, the price of sending a domestic standard letter will increase to $1.20. There will also be increases for some other products:

  • High volume business mail rates (for business customers known as Bulk Mail)
  • Domestic Parcels (ParcelPost)
  • PO Box and Private Bags
  • International Mail and Parcels

When will the new prices take effect?

The new rates will take effect on 1 July 2018. 

Why is NZ Post increasing prices? 

NZ Post is adjusting its standard and business Bulk Mail prices – to better reflect the true cost of running the mail network. These changes will assist NZ Post to manage the significant loss of revenue from fewer letters being sent and still maintain a network of more than 880 postal outlets and 1.98 million delivery points.

How does the letter price rise affect KiwiStamps?

Existing KiwiStamps will retain their value. You can use any KiwiStamps you have already purchased for Standard Post after 1 July 2018, without paying any more postage. New packets of KiwiStamps will reflect the new pricing.

Why is NZ Post increasing the price to send a letter or parcel overseas?

Letter volumes around the world are declining at the same time the cost to process and deliver mail continues to rise. Our international products are part of a global network of postal operators and we don’t have control over some of these costs. When our international partners put up their prices we have to pass them on.

Why is NZ Post increasing the price to send a parcel in New Zealand?

Each year we review and adjust our prices to make sure they reflect the cost of running the parcel delivery network.

Why has the upgrade to ParcelPost tracked parcel services decreased?

The decrease in price (from $1.50 to $1.00) to upgrade to a ParcelPost Tracked service will encourage customers to use this enhanced service, with greater visibility of the delivery process.

Has the rural parcel delivery charge increased?

No, the delivery charge for sending a rural parcel through our postal network will remain $3.70 for delivery Monday to Friday.

The Rural Delivery charge for ParcelPost Untracked parcels applied to consumers from 1 February 2018, will also apply to NZ Post business account customers from 1 July 2018.

Has the Saturday Delivery charge increased?

Yes, the charge for delivery of parcels on a Saturday will increase by $0.10 from $4.90 to $5.00

Does this parcel price increase include CourierPost and Pace products?

No, these price increases only refer to NZ Post products.  Customers will be advised of any change to CourierPost and Pace pricing separately.

Why is the price of PO Boxes and Private Bags increasing?

PO Box rental fees will increase by $10 per annum and Private Bags by $20 per annum, to reflect the costs of supplying, servicing and maintaining this network of secure and convenient locations. The last increase of PO Box rental fees was in 2015 and Private Bags in 2010.

The postal service is a public service so why are you increasing prices?

We do not receive a taxpayers’ subsidy to provide a postal service so we have to operate on a commercial basis to fund the network. Since the late 1980s, government policy has required the universal postal service to be self-funding.

This will just be the end of mail?

People are already sending substantially fewer letters because of the low cost and convenience of electronic communications. We are successfully making cost savings and investing in a more efficient network and processes which have more streamlined services, however the price increase is also needed to maintain a financially sustainable network.

How do I talk to someone about this? Who do I call to make a complaint?

Customers can phone the National Contact Centre on 0800 501 501.