Expatriate backpackers from New Zealand will have to leave the country if they want to get on a plane to New South Wales to visit family or friends.
The Australian government said people will not be allowed to leave New Zealand unless they have a visa and work visa.
It said expatriates will also be banned from travelling by car or plane.
Auckland airport has confirmed the restrictions have been in place for a week.
The ban applies to expatriated backpackers who have paid for their accommodation at the airport and are able to work in New Zealand.
They will be subject to strict security checks and the New Zealand immigration department will consider removing them from the country.
Expatriated backpacker David Cunliffe, who is in the US on a holiday, said he had no idea what the restrictions would entail.
He said he was in the process of applying for a US visa and that he had paid $10,000 for his accommodation and travel.
“It’s not the kind of thing I could get into New Zealand on.”
He would be unable to visit his wife and their two children, who live in Brisbane.
Cunliff said the Australian Government was trying to make it impossible for him to visit.
Immigration Minister Scott Morrison said the ban would help protect the welfare of the people of New Zealand and help them secure permanent residency.
I think we’re doing the best we can, he said.
Last month, Prime Minister Jacinda Ardern said there were concerns about people smuggling from the Middle East and Asia.
But he said she had not been able to get the right person to deal with the situation.
Deputy Prime Minister Tom Aspinall said the government would not be deterred from enforcing the rules.
We’re very, very clear about that,” he said, adding that New Zealand had no intention of giving in to anyone’s requests.
Ardern has repeatedly said the country’s immigration laws were not being breached.
She said she was concerned by people smugglers who were trying to circumvent the rules and get into the country illegally.
Her Government had stepped up border checks in recent months to help prevent people smuggling.
There are more than 2,000 people in New South, with many of them coming from the Philippines, who were denied entry to New Britain because of the restrictions.
In February, the Australian government announced it would close the border to people from countries with human trafficking issues.
As the Government announced its crackdown, Immigration Minister Scott Gibson said the Government would review visa requirements for those who were already living in New Britain.
New Zealand’s Department of Immigration and Border Protection said the measures were aimed at ensuring that the country could control the flow of illegal immigrants and criminals.
An immigration official said it was still working to get visa requirements in place, but said it had “absolutely no intention” of changing the rules at the moment.
Meanwhile, the immigration department confirmed it was considering making expatriating backpackers in the Philippines and Thailand, as well as the United Arab Emirates, ineligible for the work visa programme.