Kiwis blimmin' thrilled by Aussie citizenship embrace

New Zealand Prime Minister Chris Hipkins has hailed Australia's embrace of Kiwis as "historic" after about 400,000 of them were offered a pathway to citizenship.

Hundreds of thousands of New Zealanders living in Australia will be eligible to become Australian citizens in July following sweeping changes unveiled by Anthony Albanese.

"It's a "blimmin' good day for Kiwis living in Australia," Mr Hipkins beamed from Rongotai Airport on his way to Brisbane to meet with Mr Albanese.

"This is the biggest improvement in the rights of New Zealanders living in Australia in a generation."

With citizenship, they can access rights they held prior to a 2001 change by John Howard's government.

That includes access to key welfare benefits, student loans, disability support, to public housing, to work for the public service or to serve in the armed forces and to vote.

Australians living in NZ already enjoy all of those benefits, some after waiting times.

The reversion to reciprocal citizenship arrangements comes after years of campaigning by Kiwi governments and politicians of different stripes.

In 2015, then-Labour opposition leader Andrew Little even travelled to Canberra in 2015 to brief an Australian Senate committee on hardships faced by New Zealanders without access to a support net.

Jacinda Ardern returned the issue to the top of the trans-Tasman agenda in Sydney in June last year, when she became the first leader to visit Mr Albanese after his election win.

Shortly after, the pair announced the review of citizenship that has led to this weekend's announcement.

"Successive New Zealand prime ministers have advocated for this change for two decades," Mr Hipkins said.

"Today's announcement brings our nations closer together. It underscores the strength and breadth of the bonds between our countries.

"These changes will make a real and meaningful difference to the lives of many New Zealanders and their children by giving those who decide to take up Australian citizenship similar rights to Australians living in New Zealand."

Ms Ardern told AAP in December she considered it a duty both to care for New Zealanders based overseas and maintain reciprocal relationships.

"We look after our people no matter where they are contributing in the world," she said.

Home Affairs Minister Clare O'Neil on Saturday said Kiwis were "more like family to us as Australians than friends".

"Yet the law has said that when Kiwis migrate to Australia, they are essentially treated worse and differently than other migrants," she told the ABC.

The scenario was one that failed to "reflect that beautiful close friendship that we have with New Zealand", she said.

Under the changes, children of New Zealanders born in Australia will also become citizens at birth, rather than waiting until they are 10.

The shift has delighted advocates including Joanne Cox, who leads Oz Kiwi, a volunteer group founded a decade ago to campaign against the existing arrangements.

"It's very emotional. It's been a slog," she told AAP, saying she broke down crying when she learned the news.

"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 fairytale. The changes they are bringing in is enormous and the impact they will have on so many people is enormous."

On Saturday night, Mr Hipkins and federal treasurer Jim Chalmers - a key supporter of the move - hosted a gala dinner in Brisbane.

The two prime ministers will meet in the Queensland capital on Sunday, visiting a citizenship ceremony and sharing a barbecue to toast the deal.