By Webfit News Staff | 7 October 2025

The New Zealand Government has approved major updates to the Postal Deed of Understanding between the Crown and New Zealand Post, aiming to keep the national mail service running more sustainably.

The review was carried out by the Ministry of Business, Innovation and Employment (MBIE) to balance two needs – keeping postal services available for everyone while reducing pressure on NZ Post as letter volumes continue to fall.

Why the Change Was Needed

According to MBIE, New Zealanders are now sending fewer letters than ever before. The average household receives fewer than two letters a week, compared to around seven in 2013. Despite this sharp drop, NZ Post still has to maintain a network built for much higher mail volumes.

James Hartley, MBIE’s General Manager for Communications, Infrastructure and Trade, said the new agreement gives NZ Post flexibility to operate in a way that makes financial sense while still serving communities across the country.

What’s Changing

The revised Deed lowers the minimum number of delivery days and adjusts the required number of service outlets across the country.

Key updates include:

  • Urban deliveries: at least two mail delivery days per week.
  • Rural deliveries: at least three delivery days per week.
  • Postal outlets: NZ Post will maintain a minimum of 500 total service points, reducing over time to a minimum of 400 after four years.
  • Rural protection: no rural retail store closures in the first year unless circumstances are beyond NZ Post’s control.
  • Communal delivery points: NZ Post can convert up to five percent of addresses each year to shared delivery points, such as mailboxes at apartment entrances.
  • Review period: the new arrangement will be reviewed in three years, with an earlier review possible if mail volumes fall below 120 million items a year.

Protecting Rural Communities

MBIE said strong feedback from rural residents helped shape the final version. The Government included extra safeguards to ensure rural areas are not unfairly affected by service cuts.

What Is Not Affected

The new rules only apply to mail delivery. Parcel and courier services remain outside the Deed and will continue as normal.

The Bigger Picture

Without these updates, MBIE said the cost of maintaining the current network would not be financially sustainable. The goal is to make sure postal services stay available to New Zealanders while allowing NZ Post to adapt to changing habits.

More information about the revised Postal Deed can be found on the MBIE website: www.mbie.govt.nz