The latest lamb ad released ahead of Australia Day suggests the country has "lost the plot" and should unite with New Zealand to reclaim its former glory.

"We used to be the greatest country on Earth but we've lost the plot," Gary, who appears to be a government official, laments as the Australian Lamb ad begins.

"Cheating at sport, we can't even hang on to a prime minister."

The solution? "We finally make New Zealand part of us," another official suggests.

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"Genius, we create one nation!" Gary enthusiastically responds.

Australian officials meet some unsuspecting New Zealanders halfway between the two countries. Source: Australian Lamb
Australian officials meet some unsuspecting New Zealanders halfway between the two countries. Source: Australian Lamb

But reality quickly hits as Gary points out New Zealand hates Australia, "they still haven't forgiven us for the whole underarm thing, how are we ever going to convince them?"

The other official suggests "lamb and a Hemsworth" but of course the Hollywood star is unaffordable for the government.

The ad then cuts to a couple of New Zealanders sitting on inflatable chairs somewhere in the ocean that divides the two countries. They come across an inflatable barbecue where lamb cutlets are sizzling and the two Australian officials put forward their proposal.

Source: Australian Lamb
Source: Australian Lamb

"As we all know Australia is the greatest country on Earth but frankly right now New Zealand is doing Australia better than Australia," one official says.

"We propose we unite to create 'New Australia'," Gary adds.

When the name doesn't go down well, a second suggestion of "New Australialand" is offered.

"We could even have a new Australia Day," Gary suggests.

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"On a date we can all agree on," his colleague adds.

There are cheers from other Australians sitting in nearby inflatables as one says: "finally!".