Passports will be valid for 10 years from the end of this year and cost $180, Internal Affairs Minister Peter Dunne has confirmed on Monday.

Dunne said the Government had listened to New Zealanders and adult passports will again be valid for 10 years, once required law changes are made.

"The 10-year validity period gives greater convenience to most adult passport holders, as they will need to renew their passport less frequently.

"This will also result in a reduction in the annual price of an adult passport for New Zealanders. The 10-year adult passport price will cost $180 (including GST), an average saving of more than $90 over the 10-year validity period."

But because a child's appearance can change significantly over time, the child passport would remain valid for five years, as is international convention, Dunne said.

"The change to a 10-year passport from the existing five-year passport will require a law change to the Passports Act 1992, and I am aiming to have the change in place by the end of the year. People will be able to apply for an adult passport once the new law comes into effect."

Dunne said in the current climate of international uncertainty, it was essential to invest in technology and security, as New Zealanders expect their travel document to retain its exceptional levels of trust and integrity.

"We must safeguard the highly trusted international reputation of our passport which allows Kiwis the freedom to visit approximately 170 countries without applying for a visa. Likewise, investing in services that make it more convenient for the travelling public to access their passports is also essential, and unlike our main counterpart countries, we already provide a service for renewing adult passports entirely online," he said.

More than 40 per cent of adults already renewed their passport online. "We are looking to extend the online service to child renewals and first-time adult applicants in the future."

He said he wanted passports to remain affordable.

Child passports were heavily subsidised through adult passports fees, to ensure passports remained affordable to families.

"There has not been a rise in passport price for a decade (other than a small GST rise in 2010). Passport holders have also enjoyed below-cost passport fees for the last three years as a result of a surplus in the passport account. This surplus has now been used up," he said.

Dunne said the price of the 10-year passport would reflect the need to keep the price affordable, while production costs were spread over much lower volumes.

The new passports approved by Cabinet today will come into effect from December 31, 2015.

That timing was based on a shortened select committee consideration of the law change. He would write to all party leaders seeking a shortened process, given the issue of the length of a passport was discussed by a committee last year, so 10-year passports could be available "as soon as practicable".