Australia respects New Zealand's nuclear-free position and will work with that, "whilst respecting New Zealand sovereignty".

The Prime Minister is set to meet with his Australian counterpart on Saturday.

The Prime Minister says New Zealand and Australia's militaries will "absolutely" be more aligned in the future, adding that the process had already started.

The Australian and New Zealand prime ministers met on Friday night in Noosa ahead of the annual leader's meeting taking place on Saturday.

At an earlier meeting, New Zealand's prime minister said the relationship with Australia should never be taken for granted.

At an earlier meeting, New Zealand's prime minister said the relationship with Australia should never be taken for granted.

Anthony Albanese has laughed off suggestions there are hostilities between Australia and New Zealand, following a “cheeky” comment about the Australian budget.

The two prime ministers had glowing praise for the other, as they expressed the value of working together.

Global volatility and economic turbulence have dominated annual talks between the leaders of Australia and New Zealand, Anthony Albanese and Christopher Luxon.

Australia respects New Zealand's nuclear-free position and will work with that, "whilst respecting New Zealand sovereignty".