A Parcel Post was established between New South wales and the United Kingdom under a Treasury Warrant dated 10 June 1886.
At this time the Sydney Parcels Office was located at George Street but in October 1893 it was relocated to Castlereagh Street. Parcels could still be lodged at the GPO however. In 1893, the Parcel Post Offices were open until 6pm on weekdays and 1pm on Saturdays.
Rates to the United Kingdom
Intracolonial Rates
Intercolonial Rates
Rates to New Zealand
British Empire and Foreign DestinationsBy the time a Parcel Post was established with the United Kingdom, various British Colonies and foreign countries had already made arrangements for a Parcel Post with the United Kingdom.
British colonial destinations had rates based on a lower weight limit of one pound, compared to two pounds for New South Wales. European destinations, as well as Canada and the British Post Office in Constantinople, had a charge based on a lower weight limit of three pounds, with the exception of Belgium where a flat rate of 1/8 was charged for parcels up to a maximum weight of seven pounds. The lower weight limit for Egypt was two pounds.
Rates for parcels were first mentioned in the October 1886 quarterly edition of the New South Wales Postal Guide. The rate for the first pound was based on the minimum 2/- charge to the United Kingdom plus the rate per pound to the destination as per the Treasury Warrant between the United Kingdom and the destination. The maximum weight for British Colonies (as well as the British Post Office at Constantinople) was 11 pounds; for European destinations seven pounds.
For parcels addressed to British Colonies exceeding two pounds, the per pound rate was one shilling plus the additional pound rate as per the Treasury Warrant. By 1887 parcels sent to Austro-Hungary, Denmark, Germany, Heligoland and Switzerland could be sent via Hamburg or Cologne, the latter being a little more expensive.
It is worth noting that the Treasury Warrant rates to Sweden and Austro-Hungary were rounded up to the nearest penny as New South Wales did not have a half-penny stamp until January 1891.
With the "Postage Acts Amendment Act, 1893" New South Wales established it's own rates for Parcel Post and the Treasury Warrant in effect between New South Wales and the United Kingdom was annulled from 1 January 1894. The postage rates however remained unaltered.
The table below shows the parcel rates as originally advertised in the New South Wales Postal Guide, October 1886. The 10lb rate for Constantinople appears to be an error.

For Canada, parcels to Nova Scotia, New Brunswick, Prince Edward Island and Quebec were charged at 3/3 for the first lb, up to 2lbs 4/6 and up to 3lbs 6/9. For Ontario the charges were 3/6 for the first lb, up to 2lbs 5/- and up to 3lbs 7/6. For Manitoba and the North-West Territories the charges were 3/8 for the first lb, up to 2lbs 5/4 and up to 3lbs 8/-. For British Columbia and Vancouver's Island the charges were 3/11 for the first lb, up to 2lbs 5/10 and up to 3lbs 8/9.
With the exception of Canada, parcels could have a maximum length of 3'6" and a maximum length and girth combined of 6'. For Canada the limits were a maximum length of 2' and a maximum girth of 1'.
By 1887 the service had been extended to the following British colonies: Bahamas (3/4 to 2lbs, then 1/8 per lb), British Honduras (2/8 to 1lb, 3/4 to 2lb, then 1/8 per lb), Natal (4/8 to 2lbs. then 2/4 per lb) and Zanzibar (3/- to 1lb, 4/- to 2lb, then 2/- per lb). The maximum weight for Natal was 7lbs while for the others it was 11lb.
The service was extended to certain other British colonies as follows: Dominica, Montserrat, Nevis, St. Kitts and Virgin Islands in 1888; Cape Town in 1889; Bermuda, Falkland Islands and Turks Islands in 1890 and Bechuanaland, Transvaal and Mauritius in 1892. A direct service with Hong Kong, Gibraltar and Egypt had been established by 1891 and was extended to India and Ceylon the following year.
The October 1894 New South Wales Postal Guide listed parcel rates to almost every British colony and foreign country. A direct service with Canada was established in 1895 and with the Cape of Good Hope in 1900.
Additional ServicesIn 1886 a certificate of posting could be obtained for 4d. In 1888 this charge was reduced to 2d and by 1894 it was 3d. By 1894 inland parcels could be registered at a charge of 3d and a receipt of delivery could be obtained at a charge of 2½d.