Four teams from Victoria Police, three from New South Wales Police and two from both South Australia and the Australian Federal Police are taking part in the event, which is split across three categories.
The action started on Monday and involved obedience, heel work and a formal retrieve. Yesterday's tasks included responding to a family harm incident in which a man with a history of violence assaulted his partner.
He had to be caught and arrested by the handler.
The handlers and the dogs then had to find a young boy who was hiding in fear, and also find a weapon which had been thrown when the offender fled.
These tasks had to be accomplished within 10 minutes and are based on real situations which handlers and their dogs could and do come across in their operational work.
Inspector Todd Southall, National Co-ordinator, said it was the first time in 20 years that New Zealand Police has hosted the event with New Zealand Police defending the patrol dog title they retained in Melbourne two years ago.
"The championships test all teams across a range of skills and scenarios which they face in their operational work," Southall said.
"There is close co-operation between New Zealand Police dog section and our counterparts from across the Tasman, especially in our dog breeding and training development programmes."
The judges are not giving anything away and will only be announcing the final results on Thursday evening.