Aussie treasurer says NZ has got it right

Australian treasurer Joe Hockey has heaped praise on New Zealand's structural economic reforms, saying there are big lessons for his country.

Mr Hockey, writing in the Daily Telegraph today, said tough decisions had enabled the NZ dollar to reach near-parity with the Aussie, unemployment to fall, living standards to rise and put a budget surplus on the horizon.

In recent years NZ has increased the GST to 15 per cent along with lowering the top marginal rate of income tax and cutting company tax.