Christopher Luxon, Brooke van Velden call for stronger Australian ties after Anthony Albanese's election

New Zealand's National Party leader Christopher Luxon has sent his congratulations to newly-elected Australian Prime Minister Anthony Albanese, calling for more work to strengthen our relationship with our neighbour.

Albanese is set to become the country's 31st Prime Minister after his Labor Party defeated Scott Morrison's Liberal Party in the Australian election over Saturday night.

"Australia is New Zealand's closest friend. Our deep ties cross historical, cultural and sporting connections, beyond what we share with any other country. It is vital for our shared interests that we continue to work to strengthen the relationship," Luxon said in a statement.

"I have met Anthony Albanese several times and I always found him to be friendly, open and engaged. He will make a good partner for New Zealand and we look forward to working with him in the future."

In the wake of his defeat, Morrison described it as a "difficult night for Liberals and Nationals around the country" and announced he would be stepping down as his party leader at the next meeting. Luxon also had a message for the outgoing Prime Minister.

"The National Party would also like to acknowledge Scott Morrison for his hard work and leadership since becoming Australia's Prime Minister in 2018. I wish him and his family the best of luck in their future endeavours," Luxon said.

New Zealand's ACT Party also sent its congratulations to Albanese - and hoped Jacinda Ardern and Nanaia Mahuta will use his election as an opportunity to "reset New Zealand's ANZAC relationship".

"We've already been left out of AUKUS and the technology cooperation included in that deal.

"With a new Australian Government we need to see this as an opportunity to strengthen our ties with Australia and show a united front," said ACT's foreign affairs spokesperson Brooke van Velden.

Van Velden called on the New Zealand Government to match Australia's commitment to spend 2 percent of GDP on defence spending, citing China's "foothold in the Pacific" and the need to send a message to both our allies and "those less friendly" that we are "here to stand up for liberal democracy".

"This is the kind of valuable spending that Government should be doing, protecting our country and aligning us with our allies," she added.

"It's time for Jacinda and Nanaia to take our relationship with Australia far more seriously and following the Australian election is the perfect time to start."

Prime Minister Jacinda Ardern also congratulated Albanese, saying she spoke with her counterpart early on Sunday morning.

"Australia is our most important partner, our only official ally and single economic market relationship, and I believe our countries will work even more closely together in these tumultuous times," she said.

"I would also like to acknowledge the strong working relationship I had with Scott Morrison. I am confident that the close and unique relationship between New Zealand and Australia will continue under Mr Albanese's leadership."