John Key and Julia Gillard will lead the first joint cabinet meeting of Australian and New Zealand ministers today in what is to become a regular occasion.
Today’s event in Melbourne is only the second ever joint cabinet meeting lead by New Zealand and Australian Prime Ministers, after the first in Sydney in 2009.
Much of Mr Key’s Australian visit has already been overshadowed by the aftermath of Ms Gillard’s hasty escape from protesters earlier this week, where it was revealed her staff member Tony Hodges may have triggered the protest.
But today the discussions will be focused back on how the two countries can work together more closely in the future.
Seven ministers from each country will be present at the talks - including ministers of justice, health, commerce and defence.
The joint cabinet sitting is part of an annual bilateral meeting that takes place between Australia Day and Waitangi Day, where the Prime Ministers discuss key issues for the year ahead.
Discussions will revolve around economic alignment, emission trading, trans-Tasman residency schemes, and cyber security.
Deputy Prime Minister and Finance Minister Bill English told 3 News yesterday the Australians are taking notice of certain New Zealand economic developments.
"We've done some things that they've found pretty difficult like a big tax change we've lowered our tax rates to be lower that Australian tax rates and we're also further down the track with public sector change," says Mr English.
The upcoming 100-year ANZAC anniversary in 2015 will also be on the plate for discussion today.
3 News