New HIV cases are at their highest level since monitoring began in 1985, new figures show.
Released by the Aids Epidemiology Group, at the University of Otago, the figures show 244 people were diagnosed in 2016.
Of the 244 cases, 159 were men who had sex with men (MSM).
Of the MSM group, 98 picked up the infection in New Zealand and the others picked it up overseas.
Only one person was infected through injected drug use, and there were no mother-to-child transmissions.
Group leader Dr Sue McAllister said the biggest concern was the increase in New Zealand-based infections among men who have sex with men.
''The increase in the number diagnosed will be affected by the amount of HIV testing of those at risk.
''However, we also found that almost half of MSM infected in New Zealand had a relatively high CD4 cell count, which suggests that they have been infected relatively recently.
Dr McAllister said HIV remained a lifelong condition with significant implications for individuals and the health system.
''All of the prevention tools available need to be utilised, such as increasing promotion of condom use, timely testing for HIV after potential HIV exposure, early access to HIV treatment, and screening and treatment for other sexually transmitted infections.
The Dunedin-based monitoring group is funded by the Ministry of Health.
University of Auckland gay men's sexual health research group director Dr Peter Saxton told the Otago Daily Times a recent funding cut for a gay sex behaviour study made it difficult to respond to the increasing infection rate.
The ministry cut the funding for the three-yearly survey citing funding constraints.
Dr Saxton said it was crucial to have up-to-date information to respond to the increasing infection rate.
A survey had been scheduled in February this year but did not go ahead.
Dr Saxton said the survey funding amount was commercially sensitive, but it was ''a drop in the bucket'' compared to HIV treatment costs.
The cost of treating someone with HIV is estimated to be $800,000 during their lifetime. The annual bill has doubled over the past five years to $32million a year to treat patients with HIV.