Foreign Minister Nanaia Mahuta says she would be concerned at any moves in Australia that could increase the number of New Zealand citizens being deported.
The Australian government is working through changes to its Migration Act, which would give the immigration minister more power under the "character test" to deport people who have been convicted of a crime.
The existing law has seen thousands of New Zealand citizens who had lived in Australia, many spending almost their entire lives there with families and support networks, sent to New Zealand.
The Sydney Morning Herald has reported the bill also now has the support of Australia's opposition Labor Party, meaning such legislation would likely remain in place even if there was a change in government during the federal election this year.