What Australia and New Zealand’s PMs Agreed to at Their Recent Meeting

The prime ministers of Australia and New Zealand met for wide-ranging talks over the weekend but geopolitical tensions in the APAC region dominated.

Australian Prime Minister Anthony Albanese and fiancée Jodie Haydon, New Zealand Prime Minister Christopher Luxon and wife Amanda Luxon pose for a selfie as they visit a mountain range in Central Otago on August 10, 2025 near Queenstown, New Zealand. Photo by Office of the Prime Minister of New Zealand via Getty Images

As soon as he arrived, Australian Prime Minister Anthony Albanese was greeted by his New Zealand counterpart, Christopher Luxon, with a bear hug. As they left the press conference, a visibly relaxed Albanese joked to the media, “We’re going inside for a cuddle.”

Albanese spoke of the “uncertain world” faced by both nations. The one certainty, he said, was that “Australia and New Zealand stand together,” as part of a relationship going back to the ANZACs.

Luxon’s comments reflected a similar sentiment.

“The world seems really uncertain and fractious, and actually, we have no greater friend than Australia,” he said.

He called the trans-Tasman relationship “the best it’s ever been.”

Regional Security

The leaders reaffirmed their “cooperate where we can, disagree where we must” approach to Beijing, maintaining dialogue while raising concerns over human rights, trade, and sovereignty.

They both recently made successful visits to China, which is the largest trading partner of both countries but has stepped up its military exercises around Taiwan and the Philippines.

In February, Beijing sent a naval flotilla into the Tasman Sea and around Australia’s coast. Whilst anchored between New Zealand and Australia, the ships engaged in an unnotified live fire exercise.

Luxon said his country wanted closer military cooperation with Australia, which he described as New Zealand’s “only ally.”

“A big focus for us has been interoperability with Australia. We want to be a force multiplier,” he said. “We want to be one ... essential ANZAC force essentially operating within our region.”

Chinese destroyer CNS Zunyi, top, frigate CNS Hengyang, middle, and replenishment ship CNS Weishanhu transit the Tasman Sea near Australia on Feb. 22, 2025. Courtesy of the Australian Defence Department

Albanese and Luxon said in a joint statement that both countries face the most unpredictable and dangerous strategic environment in decades, and the alliance plays a critical role in protecting and advancing shared interests in the region.

While the statement did not mention China, the prime ministers confirmed it was discussed.

“Of course, the geostrategic competition, in particular between the great powers, is something that countries like Australia and New Zealand do discuss together and we cooperate politically,” Albanese said.

Luxon said both countries have “followed pretty much the same playbook” in their dealings with Beijing.

“China’s an important world power. It’s important that we can engage,” Luxon said.

Gaza

Luxon said the two countries shared “a deep concern” over the situation.

Hours before the prime ministers spoke, the foreign ministers of both countries, along with those of Germany, Italy, and the UK, condemned Israel’s decision to launch a new large-scale operation in the enclave, warning it risked breaching international law and would worsen the already “catastrophic” humanitarian crisis, endanger hostages, and risk mass civilian displacement.

The statement called for an immediate and permanent ceasefire and reaffirmed the signatory countries’ backing for a negotiated two-state solution, with Hamas excluded from any role in governing Gaza.

Demonstrators march across the Sydney Harbour Bridge during a pro-Palestinian rally against Israel's actions and the ongoing food shortages in the Gaza Strip, in Sydney, Australia on Aug. 3, 2025. Saeed Khan/AFP via Getty Images

“[Australians] want to see a ceasefire,” Albanese said. “They want to see the killing stop. They want to see hostages released. They want to see peace in the region. ”They don’t want conflict brought to Australia either.”

Luxon said New Zealanders were “horrified” by what they saw unfolding in Gaza. “The military action that we’ve seen is not the way to solve this problem. It requires diplomacy. It requires dialogue.”

501 Deportees

The issue of “501s”—New Zealanders deported from Australia after they were deemed to have failed the character test for a visa, despite often having lived there for most of their lives—has long been one of the few points of friction between the two neighbours.

In 2022, Albanese promised a more compassionate approach, but domestic political pressure forced the government to reinstate stricter deportation policies two years later.

In response to a question from media, Albanese saidthat Luxon had once again raised the matter with him, “[as] I'd expect him to.”

“But as Australia’s prime minister, you'd expect me to say that the issue of Australia’s national interest is what we put first in all of our relations,” he said.

In response, Luxon said he accepted Australia’s right to make its own border rules, but that many of those deported had “very little connection to New Zealand.”

Military Spending and Cooperation

The prime ministers commended progress made over the past year in increasing defence cooperation and integration.

Whether that will extend to New Zealand following Australia’s lead and ordering new frigates from Japan is not a question Luxon is prepared to answer right now, but the presence of Japanese warships docked in New Zealand on Friday for the first time in almost 90 years has led to speculation on the matter.

Luxon said the two sides would pursue joint procurement “to ensure our purchases are as cost-effective as possible.”

United States Army MH-47G Chinook assigned to the 160th Special Operations Aviation Regiment prepares to take off from Madang Airport in Papua New Guinea during Exercise Talisman Sabre 2025.
Courtesy of the Australian Department of Defence

He said the relationship between the two militaries was already “deploying more together, training more together, and exercising more together” and that New Zealand’s commitment to increase defence spending to 2 percent of GDP over eight years would ensure interoperability with Australia.

Albanese said the two nations’ defence cooperation had “never been stronger.”

Growth

Both leaders also discussed ways to facilitate easier business transactions across the Tasman.

They announced a new partnership between their national standards bodies, which they stated would further simplify trade and support economic growth on both sides of the Tasman.

Two-way trade is worth $32 billion, and ministers on both sides have been meeting regularly to strengthen ties.