Mr Turnbull said if the bill is passed this year, about 2,600 Kiwis will be able to take advantage of the scheme in 2016.
The announcement that New Zealanders will be able to access student loans in Australia, was however overshadowed by the continued criticism in New Zealand of Australia’s stance on deporting non-citizens who have been cumulatively sentenced to 12 months or more in prison.
Australia is reportedly deporting 1 New Zealander a day under the tough laws. It is estimated that up to 1000 criminals could be sent back to New Zealand in the next five years, despite having few or no ties with the country.
Mr Turnbull made no apologies for the tough stance but said that New Zealanders in detention centres will have the option of returning to their home country while their appeals were being processed, rather than remaining locked up.
The Prime Minister acknowledged the large number of Kiwis being deported, but said he expected numbers to decline once the Immigration Department worked through a backlog of cases
He has promised to devote "considerable additional resources" to speed up processing and clear the backlog.
"That process of appeal will be made much faster, it'll be expedited, that is essentially giving more administrative resources to it," Mr Turnbull said.
Government should bring back the portability payment for students which allowed them to still be paid Austudy for up to 6 weeks if they travelled overseas for up to 6 weeks. Very unfair that this was cancelled when so many of us have family abroad.