Prime Minister Scott Morrison finalised a deal with his New Zealand counterpart Jacinda Arden on Friday, paving the way for flights to restart from October 16.

But it is a one-way deal, New Zealand doesn't want Territorians just yet.

Transport Minister Michael McCormack said health officials had assessed New Zealand as a low risk of transmitting the disease to Australia.

"This is the first stage in what we hope to see as a trans-Tasman bubble between the two countries," the deputy prime minister told reporters in Canberra.

Kiwis will be exempt from quarantine when arriving in Australia, provided they are not in a designated hotspot.

But Australians hoping to cross the Tasman will have to wait a little longer, with the New Zealand government not yet satisfied with Australia's infection rates.

Any state or territory which agrees to the hotspot definition for reopening its borders could be included in the bubble. South Australia is likely to be the next state included, Mr McCormack said.

- with Australian Associated Press