Australia's umbrella group for non-governmental groups, the Australian Council for International Development, has welcomed Canberra's decision to implement the findings of a review into aid effectiveness.
Its executive director, Mark Purcell, says the review wants the focus on reducing poverty and it sees NGOs as key allies in helping deliver the aid programme.
This comes as New Zealand moves in a different direction, emphasising sustainable economic development over the elimination of poverty.
Mr Purcell says another divergence is the way the New Zealand foreign minister, Murray McCully, has severed links with some Pacific NGOs, which he says has been devastating for the organisations involved.
"With very very quick withdrawal of funding so staff are laid off in NGOs, training programmes have come to an end. It's a real shame, particularly with the 40th anniversary of the Pacific Island Forum coming up in Auckland in September."