General information

New Zealand comprises two main narrow and mountainous islands, the North Island and the South Island, separated by Cook Strait, and a number of smaller outlying islands. Its total land area is approximately 263,310 square kilometres (about the combined area of Victoria and Tasmania). New Zealand claims a maritime exclusive economic zone (EEZ) of a little over four million square kilometres, the fifth‑largest in the world and more than 15 times its land mass. It has a cool temperate climate, strongly influenced by oceanic factors.

New Zealand's population surpassed 5.3 million at the end of 2023. Since 2013, New Zealand's population has grown at an average rate of 1.8 per cent per annum, boosted by immigration. Until recently, most immigrants had arrived from the United Kingdom, Australia and northern Europe. A growing number of migrants now come from Pacific island countries, particularly Samoa, Cook Islands and Niue, and from Asia. Australia is a major destination for New Zealand migrants and tourists.

Bilateral relations

Australia and New Zealand are natural allies with a strong trans-Tasman sense of family. Migration, trade and defence ties, keen competition on the sporting field, and strong people-to-people links have helped shape a close and co-operative relationship.

It is estimated that around 670,000 New Zealand citizens live in Australia (close to 15 per cent of New Zealand's population), while there are around 75,000 Australians in New Zealand. Freedom of travel is facilitated through the Trans-Tasman Travel Arrangements (TTTA) of 1973, which allow Australians and New Zealanders to visit, live and work in either country without restrictions. From 1 July 2023, New Zealanders who reside in Australia and meet eligibility requirements will be able to apply for a new direct pathway to citizenship. For more information on the TTTA, see New Zealand citizens. Information on access to benefits can be found at New Zealand citizens claiming payments in Australia.

At a government-to-government level, Australia's relationship with New Zealand is the closest and most comprehensive of all our bilateral relationships. Prime Ministers, Foreign Ministers, Defence Ministers, Trade Ministers, Climate Ministers and Treasurers all hold annual formal talks.

Australia and New Zealand cooperate closely in global and regional fora, including the United Nations, World Trade Organization (WTO), APEC, East Asia Summit, ASEAN Regional Forum and Pacific Islands Forum. We are both committed to supporting Pacific priorities and working together with our Pacific family to respond to our shared challenges, including climate change.

Australia and New Zealand have a proud history of joint deployments dating back to the Australian and New Zealand Army Corps (ANZAC) at Gallipoli. Our defence relationship remains as important as ever, and includes recent operations in Timor-Leste, Solomon Islands, Iraq and Afghanistan.

Formal expressions of our security partnership are found in the 1944 Canberra Pact and 1951 ANZUS Treaty. Our bilateral defence relationship is underpinned by the 1991 Closer Defence Relations agreement (CDR), updated in 2018, which provides a broad strategic framework for the bilateral defence relationship. In accordance with the recommendations of the 2011 Review of the Australia-New Zealand Defence Relationship, a framework for closer consultation and engagement on defence has been implemented since 2012.

The 1983 Australia‑New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER) is one of the world’s most open and successful free‑trade agreements. The Australia, New Zealand and ASEAN free‑trade agreement (AANZFTA) entered into force on 1 January 2010 and has recently been through a process of upgrade negotiations. Both Australia and New Zealand cooperate closely in pursuing WTO goals, notably through participation in the Cairns Group, a coalition of 20 agriculture‑exporting countries promoting the liberalisation of trade in agriculture.

The Australia New Zealand Leadership Forum (ANZLF), established in 2004, is a private sector-led forum which brings together Australian and New Zealand business and government leaders to reinforce and develop the trans-Tasman economy and business environment. The ANZLF, is supported by DFAT and its New Zealand counterpart, the Ministry of Foreign Affairs and Trade.

At their annual Leaders' Meeting in Wellington on 26 July 2023, Prime Minister Anthony Albanese and then-Prime Minister Chris Hipkins announced the Trans-Tasman Roadmap to 2035, aimed at lifting shared ambition to improve the lives of the people living in our nations and our region including through building sustainable, inclusive economies and actively supporting Pacific priorities. Prime Minister Albanese and Prime Minister Luxon recommitted to the roadmap at the annual Leaders’ Meeting in Canberra on 16 August 2024. At this meeting in Canberra, Prime Ministers also acknowledged our nations’ deep and abiding bonds as friends, family and formal allies. They affirmed Australia and New Zealand’s fundamental alignment in our shared assessment of the challenges faced in an increasingly uncertain and dangerous world, and commitment to working in lockstep to harness all elements of statecraft to advance our shared interests. (Leaders’ Joint Statement)

Foreign Minister Wong and Deputy Prime Minister Marles met their New Zealand colleagues, Deputy Prime Minister Peters and Defence Minister Collins for the inaugural Australia-New Zealand Foreign and Defence Ministerial Consultations (ANZMIN 2+2) in Melbourne on 1 February 2024. This was New Zealand’s first Foreign and Defence Ministers’ 2+2 meeting and an important step to strengthen the Australia-New Zealand alliance to address evolving geostrategic challenges. (ANZMIN Joint Statement). ANZMIN was preceded by the biannual trans-Tasman Foreign Minister Consultations (FMCs) meeting and a Defence Ministers’ Meeting.

Trade Minister Farrell met his New Zealand counterpart Trade Minister McClay  for annual Closer Economic Relations trade talks in Rotorua on 21 September 2024. Ministers celebrated the benefits ANZCERTA has brought to both sides of the Tasman over 41 years, reflected in the sixfold growth in trade flows since 1983 and tripling of two-way direct investment since 2001. Ministers acknowledged that the Single Economic Market (SEM) had delivered significant winds for our people and businesses, and noted the need to modernise the SEM in light of rapid technological change and geo-economic competition.  Ministers reaffirmed their commitment to promoting open, diversified, rules-based trade, including through support for efforts to reform and strengthen the multilateral trading system, with the WTO at its core. (Trade Ministers’ Joint Statement)

Political overview

Government

HM King Charles III is the Head of State, represented by the Governor-General, currently Rt Hon Dame Cindy Kiro, who may summon, prorogue or dissolve parliament. The Prime Minister, currently Rt Hon Christopher Luxon, is Head of Government and requires the confidence of the House to govern.

New Zealand is a parliamentary democracy in the Westminster tradition, but with several significant differences. Its executive arm of government is drawn from its legislature, which notionally has 120 members, although this may temporarily increase between elections to account for voting equities ('overhang seats') under its Mixed Member Proportional (MMP) electoral system, introduced in 1997. With the abolition of its Legislative Council (upper house) in 1951, New Zealand's parliament became unicameral.

Under the MMP electoral system, voters are given two votes – one for a local MP (an electorate vote) and one for a political party (a party list vote). Māori voters may choose to be on either the General or Māori electoral roll.

With the introduction of MMP the opportunity for minor parties to gain parliamentary representation increased. As a result, coalition and minority governments have become commonplace.

In 2023, Nationals won 49 seats in what was eventually a 123-seat parliament (as a result of overhang seats and a byelection), with the Labour Party winning 34 seats. The Nationals Government negotiated a coalition with minor parties ACT New Zealand and New Zealand First to reach a majority of 68 seats.

Former Prime Minister Rt Hon Chris Hipkins was elected by the Labour Party as opposition leader.

New Zealand general elections are held every three years. It is compulsory to enrol to vote, but voting is not compulsory.

Economic Overview

Following a comprehensive reform program that began in the mid-1980s, the New Zealand economy is now largely deregulated, and more internationally competitive. The production base has diversified while maintaining a large agricultural sector. For detailed information on primary industries, see the New Zealand Ministry of Primary Industries.

New Zealand’s two-way trade with the world was $203.48 billion for the year ending June 2024. New Zealand’s top five export destinations are China, the United States, Australia, Japan and the United Kingdom. New Zealand’s top five import origins include China, Australia, the United States, Singapore and the Republic of Korea. For detailed information on New Zealand's economy and trade, see Stats NZ and the Ministry of Foreign Affairs and Trade.

Bilateral economic and trade relationship

The bilateral economic and trade relationship is shaped by the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER), which came into effect on 1 January 1983. ANZCERTA is one of the world's most open and successful free trade agreements. Two-way trans-Tasman merchandise trade has increased at an average annual rate of around eight per cent following its adoption.  For detailed information see Australia-New Zealand Closer Economic Relations Trade Agreement and the New Zealand country/economy fact sheet [PDF].

Australia and New Zealand are also parties to the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Pacific Agreement on Closer Economic Relations (PACER Plus), and the Regional Comprehensive Economic Partnership (RCEP).

Single Economic Market (SEM)

In August 2004, Australia and New Zealand committed to establishing a process called the Single Economic Market (SEM) agenda, designed to create a seamless trans-Tasman business environment. The SEM agenda builds on ANZCERTA by identifying innovative, low-cost actions to reduce discrimination and costs arising from different, conflicting or duplicate regulations or institutions in either country. The SEM agenda has brought significant economic benefits to both countries by lowering business costs and increasing the ease with which both businesses and people can operate across the Tasman.

At the annual Leaders’ Meeting in Canberra on 16 August 2024, Prime Minister Albanese and Prime Minister Luxon acknowledged that rapid technological changes as well as geo-economic competition had fundamentally reshaped the economic landscape.  Looking to the future, Prime Ministers committed to modernising the SEM in respond to these shifts – by expanding the SEM to emerging sectors of the economy; taking active steps to ensure our economic resilience; and considering how to position the SEM within the economic evolution underway across the wider region. (Leaders’ Joint Statement)