Australia's immigration policy is set to undergo a massive change, as New Zealanders living in the country will soon be able to apply for citizenship without the prerequisite of first become permanent residents.
Prime Minister Anthony Albanese announced the shift in policy, which will take effect from July 1 and provide a direct pathway to Australian citizenship for New Zealand citizens.
This change follows the introduction of legislation in 2001 by John Howard which made it more challenging for New Zealanders residing in Australia to attain citizenship and instead placed them on special category or temporary residency visas.
Mr Albanese said the changes were "consistent with our ambition to build a fairer, better managed and more inclusive migration system".
"Australia and New Zealand have a deep friendship, which has been forged through our history, shared values and common outlook," he said.
"I am proud to offer the benefits that citizenship provides."
According to the government, the policy changes are expected to make approximately 400,000 of the estimated 700,000 New Zealanders residing in Australia eligible for citizenship.
This development will provide a range of rights and privileges that many New Zealanders currently living in Australia do not have access to, including; welfare benefits, student loans, disability support and public housing, being able to work for the public service or in the armed forces and voting.
Australians living in New Zealand already enjoy all of those benefits.
The government's shift has pleased advocates, including Joanne Cox, the chairwoman of Oz Kiwi, the peak body for New Zealanders in Australia.
"It's like Christmas," she told AAP, as she broke down crying when she learned the news.
Ms Cox has led the group for a decade as a volunteer, railing against "discriminatory" hurdles to access.
"It's very emotional. It's been a slog," she said.
"It's been demoralising. It's been frustrating. There have been tears and anger over the years and some absolute horror stories along the way.
"But this, it's like a fairy tale. The changes they are bringing in are enormous and the impact they will have on so many people is enormous."
Standard assessments such as character checks and English competency tests will still apply, as they do for all would-be citizens.
New Zealand Prime Minister Chris Hipkins said the announcement "brings our nations closer together".
"This is the biggest improvement in the rights of New Zealanders living in Australia in a generation and restores most of the rights Kiwis had in Australia before they were revoked in 2001," he said.
"Most of us know someone who's moved across the Tasman. They work hard, pay taxes and deserve a fair go."
It is not yet clear whether the federal opposition will support Labor's changes.
