Malcolm Turnbull has discussed security, trade, welfare and immigration issues with New Zealand counterpart John Key on his first overseas visit as prime minister.
High on the agenda was Australia's policy of deporting New Zealanders found guilty of crimes in Australia.
"The discussion was frank, honest and constructive. It was the way you would expect friends to talk about these kinds of issues, the way that family would discuss these kinds of issues" New Zealander Prime Minister John Key said.
"We do not hide away from them...but we are trying to work on a constructive way through those."
About 240 New Zealanders are now being held in seven detention centres across Australia.
Prime Minister Turnbull said more resources will be devoted to expediting the process of reviewing cases.
"When the [Immigration] department considers it or the minister considers it, the issues, the major factors for consideration are obviously the person's ties to Australia, family, community, length of time in Australia; and obviously balanced against the nature of the crime, the gravity of the offence, the threat to the Australian community."
He said he understands the concerns New Zealanders have about Australia's policy of detaining New Zealanders.
"Trans-Tasman harmony is very important. New Zealand is very important to Australia and to Australian leaders," he said. "But the concerns have largely arisen from those temporary factors and the delays and we are diverting additional resources to ensure the processing is done much more quickly."
Mr Key welcomed the announcement.
"Our main point has been to say look there are some people for whom they've committed these crimes, but actually their community of interest is in Australia, they came when they were very young, and maybe their crime isn't as significant as others," he said.
"What the Prime Minister pointed out rightfully so is that there is appeal process that can be exercised by the minister and ultimately the courts if required."
Mr Turnbull also announced that New Zealanders who are long-term residents in Australia will be eligible for HELP student loan program.
He said 2,600 New Zealanders are expected to benefit from the decision.
READ MORE
Kiwis could get Aussie student loans
Mr Turnbull travelled across the Tasman on Friday afternoon with his wife Lucy, and had a private dinner with Mr Key and his wife Bronagh.
The two prime minister held bilateral talks on Saturday after attending a war memorial wreath laying and ceremonial welcome at Government House in Auckland.
Mr Turnbull will leave New Zealand later in the day.