Malcolm Turnbull honours bet, wears black and silver tie

Malcolm Turnbull said as far as ties went it was not too bad "apart from its unfortunate circumstances". Photo / Twitter

Australia's Prime Minister Malcolm Turnbull has paid out on his bet over the Rugby World Cup, wearing an All Blacks tie with a silver fern on it in Australia's Parliament today.

The bet on the New Zealand versus Australia final of the Rugby World Cup required the losing Prime Minister to wear the other country's tie to Question Time in Parliament.

Mr Turnbull said as far as ties went it was not too bad "apart from its unfortunate circumstances."

But Mr Turnbull did not let the opportunity slip to get in a sledge, telling Parliament he had also offered to make a bet on the cricket with Mr Key: "but he doesn't think the odds are good enough on that."

It coincided with Australia beating New Zealand by 208 runs in the first test. Mr Turnbull also revived the old apple wars, quipping that his Minister for Agriculture had tested the tie and found no apple stains on it.

"However, we have detected a bit of Lemon and Paeroa and Steinlager, which just goes to show you've got to be careful when you're getting your beer out of the chilly bin." He even put on New Zealand accent for the 'chilly bin' rather than the Australian version of an 'esky.'

Mr Key said he thought Mr Turnbull looked "very smart" in the tie, which was one the NZ Rugby Union had given to Mr Key.

He had worn it himself on a few occasions.

"He wanted a used one. Some people want the shirt off my back, he just wanted the tie."

It was black and white striped with a silver fern at the bottom.

"It would be fabulous to wear at the investiture for a knighthood."

Mr Turnbull has just scrapped knighthoods in Australia while Mr Key has indicated All Blacks captain Richie McCaw will be offered one.