Air New Zealand and other carriers can now pick up passengers in Australia en route to South Africa which will boost flight numbers between the countries.
Associate Transport Minister Nathan Guy said until now no arrangement had been negotiated to allow the pick-ups which meant airlines were not allowed to.
The ban had also applied to code share services and had made the operation of regular flights between the countries uneconomic.
The new arrangement would be a boost for business, tourism and personal links, he said.
"This will allow the airlines of each country to pick up and drop off passengers and freight in Australia, and to operate daily flights between our two countries -- up from three flights per week."
Mr Guy said over the past five years there had been a 40 percent increase in the number of South Africans visiting New Zealand, and the same figure applied to those from New Zealand heading to South Africa.
