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On 22 April 2023, the Australian Government announced a direct pathway to Australian citizenship for New Zealand citizens living in Australia.
From 1 July 2023, New Zealand citizens who have been living in Australia for four years or more will be eligible to apply directly for Australian citizenship. They will no longer need to first apply for and be granted a permanent visa. These changes apply to New Zealand citizens holding a Special Category (subclass 444) visa (SCV) who arrived in Australia after 26 February 2001. Protected SCV holders will continue to be eligible to apply directly for Australian citizenship.
For New Zealand citizens who are long-term residents in Australia, this will be achieved by backdating their period of permanent residence for citizenship purposes. This will allow them to meet the 12-month permanent residence period under the general residence requirement.
Source: Direct-pathway-to-Australian-citizenship-for-NZ-citizens-from-1-July-2023.pdf