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One week ago we received the devastating news that my younger brother had committed suicide. Hubby and I are currently at the airport, travelling to the UK for his funeral. He was just here with us 4 weeks ago. Doesn't seem real.

No it is not true. Firstly the NZ PR does not give any right to live in Australia, only NZ citizenship will and even then only a temporary visa. With Australian PR, you would be granted NZ PR status upon arrival in the country. If you don't leave for over five years then yes you could stay and become NZ citizens, but if you do need to leave before then, well once the initual five years on your Australian visa has expired you are left unable to enter Australia or NZ again as you would not qualify for a return visa for either country. In a nutshell, it is a very bad idea and if you want to move to NZ, you should apply for a NZ vusa.

The drawback is that if you leave NZ after your PR expires (if you do not qualify for a RRV by living in Australia for two years) you will not be able to return to NZ...as you no longer have rights to enter NZ on your visa. You can live in NZ for ever but unless you qualify for NZ PR and citizenship you can never leave NZ even for a holiday to Australia (as you will not qualify for a RRV )