While Australia and New Zealand have long expressed a close trans-Tasman relationship, immigration rules in recent years have made it tough for Kiwis to become Australians.

That's all about to change, with Australia's Prime Minister Malcolm Turnbull announcing a streamlined pathway to citizenship for Kiwis living in Australia, following a meeting with New Zealand Prime Minister John Key in Sydney on Friday.

The new agreement will allow New Zealanders who have been living in Australia for five years to attain permanent residency, eventually leading towards citizenship.

New Zealand Prime Minister John Key, right, meets with Australian Prime Minister Malcolm Turnbull, left, on Feb. 19, 2016 in Sydney, Australia. Image: Getty Images/Rick Rycroft-Pool

The pathway being made available is "an acknowledgement of the special relationship between the two nations," according to a statement from the Prime Minister's office sent to Mashable Australia via email. "New Zealanders and Australians have a shared history and destiny and no two nations could be closer than ours."

The pathway will only apply to Special Category visa (SCV) holders who arrived after Feb. 26, 2001, until the date of the announcement on Feb. 19, and they must prove they have earned equivalent or above the Temporary Skilled Migration Income Threshold (TSMIT) of A$53,900 (US$38,350) throughout the five-year period.

Applicants will also be subject to Australian immigration's mandatory health, character and security checks. They'll be able to apply for the pathway from July 1, 2017.

Great news for Kiwis living in Australia with @TurnbullMalcolm announcing a new pathway to citizenship. pic.twitter.com/mlQ4eD1I8z — John Key (@johnkeypm) February 19, 2016

While New Zealanders can more easily enter Australia for work or holiday reasons compared to other nationalities, the path to citizenship was much more difficult, due to changes enacted by the Howard government in 2001.

Prior to Feb. 26, 2001, New Zealanders in Australia were treated as permanent residents, with access to government payments and the option to become an Australian citizen within two years. Children were automatically granted citizenship.

Following this date, Kiwis had to apply for the SCV, a indefinite temporary visa that allowed them to stay and work in Australia as long as they remained a New Zealand citizen. This not only denied the benefits of permanent residency, but also made it much more difficult for Kiwis to become citizens, no matter how much they had earned or how long they had been in Australia.

Joanne Cox from Oz Kiwi, a group campaigning for the rights of New Zealanders in Australia, told Mashable Australia the move is a "positive step" that allows more Kiwis who hold a SCV to apply for citizenship in Australia.

However, Cox points out there are some downsides, such as the cut-off date which begins on the date of the announcement. New Zealanders arriving after Feb. 19 are not eligible for the pathway. In addition, children of New Zealanders must wait until the age of 10 to become citizens, unless they're sponsored by their citizen parents.

Cox also highlights that New Zealanders on the SCV are paying towards the country's National Disability Insurance Scheme (NDIS), with no option for a refund like temporary workers have. Despite paying for the NDIS, New Zealanders have no access to the scheme. "We get a lot of families contact us in regards to autistic children," she said.

Oz Kiwi is pushing for the laws to be as they were prior to Feb. 26, 2001. "That would be ideal in reversing the inequity of our rights that have been eroded over the years," Cox said.

More than 300,000 Kiwis are believed to be living in Australia on the SCV, according to stuff.co.nz, with an expected 60,000 to 70,000 of 140,000 post-2001 SCV holders to be eligible for the new pathway, according to the Australian government.

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