Christopher Luxon heads to Australia for annual meeting with Anthony Albanese

New Zealand and Australian prime ministers Christopher Luxon (L) and Anthony Albanese meet in Sydney in 2023.

Photo: RNZ / Angus Dreaver

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

He says having the two militaries working closer together "intuitively makes sense".

Christopher Luxon is heading to Queensland on Friday to meet his Australian counterpart Anthony Albanese. The annual leaders' meeting comes after New Zealand's defence spending was discussed on the world stage last weekend.

It also comes after China fires a "warning shot" by sanctioning New Zealand MPs, according to a law professor.

New Zealand and Australia take turns hosting the yearly fixture between the two nations, which allows the prime ministers to discuss the bilateral relationship, and agree on their shared priorities for the year ahead.

Albanese visited New Zealand last year where the meeting took place in Queenstown. Since then, the United States and Israel attacked Iran and a major shipping route remains effectively closed as a result.

It comes as New Zealand's defence spending has been in the spotlight after the US Secretary of War (formerly Secretary of Defense) Pete Hegseth accused New Zealand - among other nations - of "freeloading" off the US.

He went on to say he didn't have anything against New Zealand, but emphasised defence spending of 2 percent of GDP was "not enough".

US Secretary of War Pete Hegseth.

Photo: AFP

Luxon disagreed with Hegseth's comments, and said that New Zealand's defence spending decisions were in its own interests and "not frankly for anyone else".

'The relationship's in very good heart' - Luxon

Law professor Alexander Gillespie told RNZ New Zealand and Australia did not just have a "good" relationship, they had "the best relationship".

Dr Alexander Gillespie

Photo: Wayne Mead

He said it was the most important relationship that New Zealand had "in terms of our identity, in terms of our economics, and in terms of our defense".

"No one is as close to us as Australia."

Speaking to RNZ ahead of his trip, Luxon said he and Albanese would discuss what could be done to grow their respective economies, as well as continue the work being done together in the defence and security space.

The pair would also consider how to work together across the region and how to put their views into broader global conversations as well.

"We have more influence in the world when we work together."

He gave the fuel supply challenges as an example, and said both he and Albanese had spoken to their cabinet ministers about expectations to work together and share intelligence about the supply of fuel.

He also mentioned advocating for the freedom of navigation in regards to the Strait of Hormuz.

Defence spending

The coalition government has made no secret about its desire to lift defence spending, due to a changing international environment.

On Tuesday, Luxon said "we're no longer in a benign environment", and that had impacts on New Zealand's prosperity and affordability.

"So it's very important, as I've been saying over the last two years, that we play our role and play our part."

Just last month, Foreign Affairs Minister Winston Peters said New Zealand's voice was not "strong" on the international stage, due to successive governments failing to pump the necessary money into defence.

Foreign Affairs Minister Winston Peters.

Photo: RNZ / Louis Dunham

The government's current target is 2 percent of GDP by 2032/33. The Defence Capability Plan [https://www.rnz.co.nz/news/political/557432/government-unveils-12-billion-defence-capability-plan

unveiled in April 2025] set the target and outlined a blueprint for spending over the next decade.

The plan would double New Zealand's defence spending.

After Budget 2026, a spokesperson for the Defence Minister told RNZ New Zealand was "well on track in implementing our plan for a combat-capable and interoperable New Zealand Defence Force".

'A more integrated ANZAC force' - New Zealand government

Asked if New Zealand and Australia's militaries would be more aligned in the future, Luxon told RNZ on Thursday "absolutely" and "we've already started that process".

In March this year, a joint statement was delivered at the Australia - New Zealand Foreign and Defence Ministerial meeting.

It stated that by 2035 the two nations would:

Operate and exercise as a more integrated ANZAC force alongside other allies and partners;

Deploy increasingly integrated and interchangeable units

Further strengthen combined mission planning, combat readiness, and synchronisation mechanisms, including through the presence of embedded staff in each other's strategic and operational headquarters

Luxon told RNZ on Thursday interoperabilty was a "really big focus of ours".

He said it did not make sense for Australia and New Zealand not to be aligned and provided the example of having more of the same equipment.

New Zealand would "tail onto" any procurement opportunities from other countries, Luxon said. But he was also mindful of how increased defence spending might impact inflation.

Gillespie said if New Zealand did look to tie its defence spending to Australia's - of 3 percent of GDP - the question then became what the money was spent on.

But these were "very huge debates" he said, if New Zealand looked to buy more than just replacement equipment.

"You're going to find that our 2 percent budget will very quickly shrink, because the next generation of warfare is very expensive."

AUKUS

Minister for Defence Chris Penk also made comments over the weekend about how it would be "helpful" for New Zealand to have a "conversation" regarding its nuclear-free policies.

Minister for Defence Chris Penk.

Photo: RNZ / Samuel Rillstone

The Prime Minister was quick to rule out any change to New Zealand's nuclear-free status.

Speaking to Bloomberg at the Shangri-La Dialogue, an annual security and defence forum in Singapore, Penk was asked whether New Zealand would consider easing those policies to allow nuclear-powered submarines into New Zealand waters.

There was no "official or even unofficial" change in New Zealand government policy along those lines, Penk said, but it would be "helpful" for the country to have "a conversation", given Australia was slated to acquire three nuclear-powered submarines as part of the AUKUS deal.

It comes as a former environment minister in Australia launches a crowd funded inquiry into the deal, where Australia was set to purchase one new and two secondhand US submarines.

Australia's defence minister, Richard Marles, had now agreed to purchase three second-hand nuclear submarines.

A spokesperson for the Minister of Foreign Affairs confirmed there had still been no decision taken by Cabinet on whether New Zealand would participate in AUKUS Pillar II projects.

China's 'warning shot' - Gillespie

The meeting was taking place following the sanctioning of four New Zealand MPs by China.

National's Maureen Pugh, Labour's Duncan Webb, ACT's Laura McClure and NZ First's David Wilson are banned from China for a year after visiting Taiwan in May.

Clockwise, from top left: Duncan Webb, Laura McClure, Maureen Pugh and David Wilson.

Photo: RNZ / Supplied

Foreign Minister Winston Peters has asked officials to "express concern" with Chinese counterparts about the travel bans placed on four MPs.

Luxon said he was concerned and Speaker Gerry Brownlee was disappointed over the move.

Australia has also said it was "concerned" by the move.

The ABC quoted Australian Foreign Minister Penny Wong as saying Australian officials would make representations to China on the ban.

The Chinese Embassy in New Zealand released a statement on Thursday afternoon, warning that "whoever crosses the red line on the Taiwan question will face the consequences".

Gillespie told RNZ it meant the situation was "escalating". He said MPs had travelled to Taiwan in the past and not been reprimanded.

"It's clearly a warning shot that we are being watched with our relationship with Taiwan."

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