The arrangement is now limited to travel to New South Wales and the Northern Territory, but other states and territories may be added at a later date.
"The quarantine-free flights will be for travellers originating from New Zealand who are flying from Auckland to Sydney and are not required to quarantine on arrival in Australia".
More than 350 passengers are scheduled to take three flights from Auckland on Friday and will not have to undergo hotel quarantine on arrival in Sydney.
At the moment, the bubble is one-sided, with Australians not allowed to enter New Zealand.
Huge interest in the first quarantine-free flights to Sydney.
Passengers were being warned if they wanted to interstate beyond New South Wales they would need to ensure they had checked state and territory travel restrictions and had the appropriate exemptions or approvals to travel, as these continue to change.
But a holiday in Australia could be expensive.
Flight Centre's Victoria Courtney told Heather du Plessis-Allan there's huge demand with Air New Zealand's first flight tomorrow morning almost full.
She said there was a flurry of activity at the worldwide terminal, and people excited to be returning home or seeing family for the first time in many months.
Travel was halted between the two countries in March amid the global Covid-19 pandemic.
Kiwis won't have to quarantine across the ditch, but they will have to pay for 14 days in managed isolation upon arriving back.
Air New Zealand chief executive officer Greg Foran said in a statement the airline has introduced "quarantine" and "quarantine-free" flights to Australia in line with the safe travel zone requirements.
The majority of Australia's cases have been in the state of Victoria, which enacted tough lockdowns to bring the numbers under control.
Singapore and Hong Kong's in-principle deal would require travellers between the cities to test negative for Covid-19 with a mutually-agreed polymerase chain reaction (PCR) test.
The International Air Transport Association (IATA), which represents 290 airlines, expects traffic to be 66% below the level it was in 2019.