Australian Prime Minister Julia Gillard has arrived at Parliament and received an official welcome with flags flying at half-mast.
She was welcomed with a powhiri, a military guard of honour, and the Air Force brass band, and was greeted by Speaker of the House Lockwood Smith and Prime Minister John Key.
Her arrival at Parliament came minutes after news a New Zealand soldier had died in a vehicle crash in Afghanistan.
New Zealand and Australia flags were both flying at half-mast.
Ms Gillard arrived in New Zealand yesterday for a two-day visit, making the first Australian leader to visit since 2007.
She is now meeting with Mr Key, and will later hold a meeting with cabinet meetings, before delivering her speech to Parliament at 11am.
Ms Gillard will be the first foreign leader to address the House, but outside regular sitting hours after the Green Party raised concerns the move would set a precedent.
She and Mr Key will then hold a joint press conference at 12pm, where they will sign the Closer Economic Relations (CER) Investment Protocol.
The protocol sets a higher threshold for trans-Tasman investment that does not have to go through a screening process.
Ms Gillard will then meet with Opposition leader Phil Goff and hold a joint wreathlaying ceremony with Mr Key at the National War Memorial.
Ms Gillard has said the focus of the visit was to continue building the strong relationship between New Zealand and Australia.
Her visit comes as fresh concerns are raised over the large numbers of New Zealanders moving across the ditch, and over a deal that will allow more investment from Australia.
But she told Radio New Zealand a strong Australia was good for New Zealand and it was not a question about big dominating small.
"Australia did get out of the global financial crisis strong. We came out with low unemployment, low debt, relatively good growth by world standards. As the world went into recession, Australia did not," she said.
"But a strong Australia is good for New Zealand. We are so closely tied that the stronger each of us is, the better it is for the other.
"So I don't think it's about fearing Australia's strength. I think it's about a genuine partnership, where Australia and New Zealand work together to give each economic opportunities, including job opportunities and there will always be a big two way exchange of people in our two countries."
At a trans-Tasman business lunch yesterday in Auckland, Ms Gillard referred to the strong "mateship" between New Zealand and Australia and paid tribute to New Zealand's support during "Australia's summer of hardship".
She joined Mr Key at the Glen Taylor School in Glendowie, where Mr Key had launched the controversial national standards programme in 2009.
