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AAP
AAP

FED:Trans-Tasman ties never better despite tax jibe: PM

Australia's diplomatic relationship with New Zealand is "in the best shape it has ever been" as the leaders of both nations meet to discuss trade, defence and foreign affairs.

Prime Minister Anthony Albanese and New Zealand counterpart Christopher Luxon held the annual leaders' meeting in Noosa, Queensland, on Saturday.

Mr Luxon arrived in Australia on Friday for a two-day visit.

He told reporters the relationship between the two nations was "in the best shape it's ever been".

"At its core this is a relationship that is deeply integrated, it is highly practical and pragmatic," Mr Luxon said on Saturday.

"It's focused on delivering outcomes for both of our countries, and the priority for both of us is to continue to build on that strength, focusing on positioning Australia and New Zealand to make the most of the opportunities ... in spite of the volatility and the uncertainty."

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