The National Party leader said society imposes restrictions on teens in the physical world and should do it in the online space too to keep them safe.
Earlier this year, National MP Catherine Wedd put forward a member's bill to restrict social media access for under 16s.
The government then picked up the work and said it will introduce a bill raising the age limit for New Zealanders accessing social media to 16.
He told RNZ that the Australian model was "of interest" to the government.
From next month, the Australian government can impose fines on social media companies if they fail to prevent people under 16 having accounts on their platforms.
Luxon said the government is looking at the model and other bans with a view to introducing legislation before next year's election - "or certainly within this term".
He said Education Minister Erica Stanford is leading the investigation.
Last week, Australian Prime Minister Anthony Albanese said he was confident the social media age limit would be a success when it comes into force on December 10, and he believed people would voluntarily comply over time.
Critics had worried that Australian parents would be left to enforce or explain a ban to their children on their own, but the Australian government has said it would put resources into schools and its eSafety Commission for the change.
