The federal government has announced a sweeping liberalisation of citizenship laws for New Zealanders, making it easier for about 350,000 Kiwis living in Australia to vote and receive government benefits.
Prime Minister Anthony Albanese unveiled the new "direct pathway to citizenship" on the eve of a visit by his New Zealand counterpart Chris Hipkins, who will then meet Mr Albanese in Brisbane on Sunday.
It is a major win for New Zealand, which has spent years protesting against the Howard government's decision in 2001 to establish a new "Special Category" visa for New Zealanders in Australia.
That visa allows New Zealanders to stay in Australia but restricts their capacity to access some government payments and obtain citizenship without first getting permanent residence through the migration program.
Now the Albanese government has largely rolled back that change, allowing all New Zealanders on the Special Category visa to apply for citizenship without becoming permanent residents first, if they've lived in Australia for at least four years.
Mr Albanese first flagged the changes in July last year when he met with New Zealand's then prime minister Jacinda Ardern and declared he wanted to "reset" the relationship.
The government has already softened its position on deporting New Zealand citizens convicted of serious crimes in Australia.
In a statement, Mr Albanese described the citizenship announcement as a "a fair change for New Zealanders living in Australia" which "brings their rights more in line with Australians living in New Zealand".
"Many New Zealand citizens choose to live and contribute to Australia, so it is reasonable they have the opportunity to become Australian citizens and enjoy the rights and obligations that come from citizenship," he said.
On Saturday, the New Zealand Prime Minister described the announcement as a "blooming good day" for Kiwis in Australia.
"I think it's an appropriate recognition of the fact that New Zealanders living in Australia contribute a lot to the Australian economy, to Australian society, and they have been treated differently from others, and that has been unfair," Mr Hipkins said before boarding a plane to travel to Australia.
"I think the Australian Government has remedied that, and I think that's a very welcome thing."
Australia's Home Affairs Minister Clare O'Neil argued the decision would open the door to important services for Kiwis.
"We had young people living in Australia who were not able to access university education ... because they were technically Kiwis," she said.
"We've had instances where women have been unable to leave relationships of domestic violence because they don't have access to social supports.
"So this is about making sure that that strong friendship we have is reflected properly in law, and it is a massively good thing for our country and for New Zealand."
The announcement removes a major sore point in the bilateral relationship over the past two decades.
Australians living in New Zealand are allowed to apply directly for citizenship if they have lived in the country for five years and pass basic eligibility tests, and can already access a wide range of government benefits.
Australians who intend to settle in New Zealand can also vote in elections after just one year in the country.
That disparity has frustrated New Zealand officials and politicians, while some New Zealanders living in Australia have also lobbied furiously for expanded rights.
New Zealanders who arrived in Australia after the 2001 changes have also been largely blocked from accessing the National Disability Insurance Scheme, and have restricted access to the disability support pension and the age pension.
Earlier this week, Mr Hipkins said many New Zealanders who had "made their lives in Australia" were in a "kind of state of suspended temporariness", while Australians in New Zealand enjoyed substantial rights.
"Free movement of people between our two countries is integral to the [economic] relationship, and has been for the last 40 years," he said.
"So this has been a challenging couple of decades where the free movement has been limited on one side."
New Zealand politicians have also argued that the fact a smaller proportion of New Zealanders in Australia are becoming citizens when compared to other nationalities proves how many barriers to citizenship remain.
Australian Home Affairs Minister Clare O'Neil said the changes to Australia's citizenship laws would correct an "injustice".
"The effect of the 2001 changes was that Kiwis living in our countries are actually treated worse than other migrants," she said.
"Now that makes absolutely no sense — our Kiwi cousins are our very best friends in the world, and they deserve the same respectful treatment Australians get when they live in New Zealand."
