"By integrating our people and assets into a large force led by the Australians during training exercises, we are actually enhancing our ability to operate alongside them," he said.
"Our participation in the exercise also demonstrates Anzac co-operation, and reinforces the close defence partnership between Australia and New Zealand."
The NZDF has deployed two ships, four aircraft including two helicopters, 22 light armoured vehicles and 23 other military vehicles for the exercise.
Around 200 combat soldiers from the New Zealand Scots Squadron, Queen Alexandra's Mounted Rifles will test their mettle in warfighting, including defending an urban area, while operating as part of the Australian Defence Force's 7 Brigade.
Major Maia Baker said the exercise "provides us the opportunity to see how other armies operate and to observe the skills, drills and equipment that they use."
Navy frigate HMNZS Te Kaha will see "action" off Darwin in Northern Australia as part of the Opposing Force. The tanker HMNZS Endeavour will help refuel the 21 ships taking part in the exercise.
This year is the sixth time the exercise has been conducted and will involve planning and military operations at sea, in the air and on land. Talisman Sabre runs from today to 21 July.