The price of obtaining a passport has jumped overnight, with further increases coming over the next two years.
The fees increased at 12am on Wednesday morning, with a 10-year adult passport now costing $199. That's up from $191 previously. A children's passport has jumped from $111 to $115, but is only valid for five years.
They will both increase again on May 25, 2023 - to $206 and $120 respectively - and then further on May 25 2024, to $215 and $125.
Internal Affairs Minister Jan Tinetti said the price increase is due to a decrease in demand caused by the COVID-19 pandemic. For nearly two years, New Zealand closed its border and warned against travel to other parts of the world.
She said passport applications have dropped from more than 730,000 in 2018/19 to a little more than 150,000 in 2020/21.
However, the Department of Internal Affairs has previously warned it is expecting a surge in passport applications as New Zealand's border reopened this year and more Kiwis travel overseas.
It is currently warning the processing time for a passport is approximately one month. Urgent passports - which can be processed in up to three working days - can be purchased for a far higher price, which is also increasing.
"The passport system is designed to be entirely funded by passport fees, and while passport income has taken a significant hit, the fixed costs to run the service remain consistent so we have been advised a small increase is required," Tinetti said in a statement.
Tinetti said the new costs are in line with other countries. In Canada, an adult passport is NZ$191.42, in Ireland it is NZ$127.75, in the UK it is $152, in the US it is $247 and in Australia, it is $329.02.
"The Department’s regular review of the passport fee structure presented a range of options that would help address COVID cost pressures over the last two years, and ensure the passport service remains on the path to full cost recovery," the minister said.
Cabinet decided to go with an incremental increase over three years, rather than a more significant one-off increase, she said.
"We appreciate any increase to costs at this time will pose a challenge to some families, but this outcome is the best balance between keeping the increase to a minimum and returning the passport service to full cost recovery."
"The COVID-19 global pandemic caused a significant and unexpected reduction in demand. Additionally, the change in validity period (from 5 years to 10 years), means the costs need to be recovered from a smaller number of passports issued. Without this change, costs will exceed revenue."
