You're welcome. Hopefully it's not just my experience but the way the tickets work for everyone. Don't even get me started on the inconsistent info frequently given out by the call centre.

In my view since the introduction of the upgrade lottery, this is the best way to use points. Sure it can be difficult to find availability but I use expertflyer and look for I class, which many airlines publish. If you want to do it, get in quick, as no doubt when NZ sees this is something members value, they will lift the rates and then lift them and then lift them again until it becomes cheaper to simply buy a revenue ticket.

Here is the relevant section from the t's and c's (doesn't mention cancellation, but see also the email that comes with the ticket below). I have only ever booked into I (business award), not sure about X (economy award).

3.3 Partner Airline Rewards
3.3.1 General
3.3.1.1 You can't request Partner Airline Rewards less than seven days before your requested date of a scheduled Flight departure.
3.3.1.2 We will endeavour to issue Partner Airline Tickets within seven days of the booking confirmation.
3.3.1.3 Airpoints Dollars for Partner Airline Tickets are deducted based on the Service Class of travel and the Sector to be travelled. When travelling within a geographical Zone (Intra-Zone), Airpoints Dollars are deducted based on the Service Class of travel, the Sector travelled and the kilometres flown.
3.3.1.4 You can make changes to an Itinerary before departure for a fee of NZ$50.00 (or local equivalent), AU$50.00 (for Australian Members only) or 50 Airpoints Dollars per change, per person.
3.3.1.5 Route, availability restrictions and residency conditions apply to redeeming Airpoints Dollars on Partner Airlines.
3.3.1.6 Companion Tickets, Infant Tickets and upgrades are not available on Partner Airline Rewards.
3.3.1.7 The redemption rates offered through the Airpoints Programme for Reward Travel may differ from the Cash price offered by Partner Airlines for the purchase of similar products or services, outside of the Airpoints Programme. There is no relationship between the Cash price offered by a Partner Airline and the redemption rates offered through the Airpoints Programme for Reward Travel.


And the email that comes with the ticket:

Amendments to this Partner Airline reward:
Should you wish to cancel this booking or make any changes, you may do so free of charge within 48 hours. If, after this time, you cancel, a fee of $100.00 or APD100.00 (in Airpoints Dollars) per person will apply. Further, any itinerary changes will incur a fee of $50.00 or APD50.00 plus any fare/tax differential. Should for any reason you miss a flight you will forfeit the Airpoints and the remainder of your itinerary will be cancelled. Once travel has commenced no changes are permitted.