Around 400,000 Kiwis will be eligible, bringing with it access to social, housing and disability support, student loans, and the right to vote.
Rights that many Australians already enjoy across the Tasman.
The changes will come into effect from the 1st of July.
It will apply to New Zealanders on temporary and special category visas, who have lived in Australia for at least four years.
And it’s retrospective, applying to those who have been in Australia since 2001.
Previous hurdles to citizenship, including income and health tests will be removed, but standard English and character tests will apply.
The visa application will cost $490.
New Zealand's Prime Minister Chris Hipkins has welcomed the news.
"I think it is a significant advance in the relationship between New Zealand and Australia. It's a very significant day for Kiwis living in Australia, many who have lived there for quite some time now, a decade or more, who have been living with this temporary permanent status hanging over them."
