New Zealanders will be able to fly to New South Wales and the Northern Territory without having to go into quarantine from October 16 under a one-way transtasman travel bubble announced by the Australian Government today.
However, it is a one-way arrangement, as those returning to New Zealand still need to quarantine for 14 days.
"Kiwis wanting to reconnect with families and friends in Northern Territory and New South Wales will welcome this news and we look forward to hearing more about a complete Tasman safe zone soon," Air NZ chief executive Greg Foran Foran said.
New Zealand Aviation Coalition co-chair Justin Tighe-Umbers was also delighted, saying there would be a lot of Kiwis with family and friends in Australia and businesspeople breathing a huge sigh of relief at the quarantine-free travel.
He said NZAC wanted to see New Zealand follow suit and open up quarantine-free travel to people from those Australian states that meet a similar 'hotspot' definition.
"The New Zealand aviation sector is ready to go," Tighe-Umbers said.
Prime Minister Jacinda Ardern's office said the rules for travellers had not changed and New Zealanders returning from travel to Australia would still have to go into quarantine for 14 days.
Australian tourists can still not travel to New Zealand.
Returning Kiwis will have to pay $3100 per room and $950 for each extra adult and $475 per child towards the quarantine costs.
Australia's Deputy Prime Minister Michael McCormack announced the first step for a transtasman travel bubble earlier today, saying the states of NSW and the Northern Territory would welcome "our New Zealand friends" from a minute after midnight on October 16.
"I have just gotten off the phone with [Northern Territory] Chief Minister Gunner who says 'the fish are biting and the beers are cold'," he said.
Under the rules in the two states, only New Zealanders who have been in a "non-hotspot" area of low Covid-19 for 14 days will be allowed into Australia.
McCormack said South Australia would probably be the next cab off the rank and there were plenty of West Australian tourism operators wanting business.
He added other Pacific nations could potentially join Australia and New Zealand's transtasman travel bubble, saying people from the Pacific Islands could travel to New Zealand, stay in a non-hotspot area for 14 days and then fly to Australia.
McCormack said Prime Minister Scott Morrison was still negotiating with Ardern about when Australians would be allowed to fly there.
The arrangement, said McCormack, would allowed NSW to take 325 more returning Australians into hotel quarantine.
"I know, having spoken to both Alan Joyce and Paul Scurrah, the chief executive officers of Qantas and Virgin respectively, they are also very, very pleased with these arrangements," he said.
Last year 444,000 people from New Zealand visited NSW, about 10 per cent of total visitors. They spent $A413 million, according to Tourism Research Australia.