Changes to Australia's citizenship policy is a significant step forward in the relationship between the two countries, New Zealand Prime Minister Chris Hipkins says.
The Australian government today announced a direct pathway to citizenship for Kiwis, ending a tension between the two countries that has lasted for more than 20 years.
Since 2001, New Zealanders in Australia have been able to reside there on a Special Category Visa. While it has allowed them to remain in Australia indefinitely, getting permanent residency and citizenship has been much more difficult.
It has meant New Zealanders have been unable to access benefits such as student loans, join the Defence Force, or even vote.
In contrast, Australians in New Zealand have had a clear pathway to citizenship after five years.
But from July 1 this year, New Zealanders who have been on the Special Category Visa (SCV) and lived in Australia for four years will be able to get citizenship. They will still need to meet standard criteria (such as pass a character check, a language test, and intend to stay in Australia), and attend a citizenship ceremony.
"I think it's a blimmin' good day for Kiwis living in Australia," Hipkins said this morning ahead of a flight to Australia to mark Anzac Day on April 25, and celebrate 40 years since the Closer Economic Relations agreement was signed.
"This is the biggest improvement in the rights of New Zealanders living in Australia in a generation," Hipkins said today.
"Most of us know someone who's moved across the Tasman. They work hard, pay taxes and deserve a fair go. These changes deliver that and reverse erosions that have taken place over 20 years."
Hipkins acknowledged the Australian government's commitment to implementing the new policy, something Australian Prime Minister Anthony Albanese pledged to review last year.
"It's something New Zealand governments have argued for for a very long time. It's fair to say we've had a much more open door for these conversations over the past year."
But he stressed this was not the result of a negotiation between the two countries.
"These were Australia's decisions. The current Australian government really have taken this on board and we really thank them."
He did not think the changes would significantly impact the calculations New Zealanders make when deciding to make a move across the ditch.
New Zealanders were some of Australia's most valuable migrants and were hard workers, he said.
"And they have been treated differently from others."

Babies born in Australia to New Zealand parents will become citizens at birth, rather than waiting until they are 10 years old.
Hipkins said they would be able to claim New Zealand citizenship and could continue to be dual citizens.
"This is a fair change for New Zealanders living in Australia, and brings their rights more in line with Australians living in New Zealand. This is consistent with our ambition to build a fairer, better managed and more inclusive migration system," the Australian government said in a statement.
This year also marks the 50th anniversary of the Trans-Tasman travel arrangement, which allowed each country's people to live and work in the other country.
"Australia and New Zealand have a deep friendship, which has been forged through our history, shared values and common outlook," Albanese said.
"As we mark the 50th anniversary of the Trans-Tasman Travel Arrangement, I look forward to strengthening our relationship."
Hipkins and Albanese will celebrate today's announcement with a community barbecue and citizenship ceremony in Brisbane on Sunday.
They will also visit a cemetery to attend the unveiling of plaques for previously unmarked graves of soldiers who served during World War 1 and World War 2.
Oz Kiwi chairperson Joanne Cox says the rights organisation has been working Australian officials on this policy since 2015.
Everyone now has a fair and affordable pathway to citizenship, no fishhooks and no barriers, she said.