JAYNE AZZOPARDI, HOST: We are going to get some more on Australia's landmark defence deal with Papua New Guinea.

KARL STEFANOVIC, HOST: To discuss we're joined by Prime Minister Anthony Albanese in Canberra, who can make K-Pop. Good morning to you, PM. Nice to see you this morning. Look, you finally got there with PNG.

ANTHONY ALBANESE, PRIME MINISTER: Morning. Great to be with you.

STEFANOVIC: Are you worried about how China might react?

PRIME MINISTER: No, it was never in doubt, Karl, as I said at the time. And it's a fantastic deal, as Prime Minister Marape put it in this very corridor here just yesterday, the idea of one fence, two neighbours. And it really strengthens the national sovereignty of both of our countries. It is our first alliance in more than seven decades. So, it's a very big deal. It says that should there be a common threat, we will combine our efforts to defend our respective nations and help each other out. And it really is a concrete example now in writing, of what is our most important relationship, so that our nearest neighbour is our newest ally. You can of course swim from Saibai Island to PNG. So, we're very close. We have such an important relationship going forward. We're going to get an NRL team in 2028 from PNG. And next Sunday, the Prime Minister's 13 plays the PNG Prime Minister's 13 in Port Moresby. And they will be welcomed to PNG, the Aussie team, like absolute heroes when they arrive during the week.

AZZOPARDI: I have no doubt. Will this deal mean Australian soldiers stationed at the border of PNG and Indonesia?

PRIME MINISTER: What it - no. What it means is that Australian soldiers will be increasingly participating in PNG, and vice versa as well. There will be training of PNG personnel by the Australian Defence Force, increasing interoperability of all of our defence assets. And our most important asset, of course, is our people. So, increasing understanding there builds on the work that we've done with the Pacific Policing Initiative where we're training police officers from throughout the Pacific nations at Brisbane, and in centres, including one in PNG. So that there's that common understanding and experience and relationships - that is so important. So, this is a big step forward. It'll now go to our respective Parliaments for endorsement through our Treaties Committee and their equivalent in PNG.

STEFANOVIC: No dramas here. Do you expect any dramas there?

PRIME MINISTER: No, I think it will be very warmly received. Of course, with things like this, there will always be someone who'll put their hand up and say that they would like things done differently. But this was endorsed overwhelmingly by the Cabinet. Prime Minister Marape has been such a strong supporter of this. This is an approach that came from Papua New Guinea to Australia. And I was very much supportive the first I heard of it, and was put to me, and we've worked really hard. I walked the Kokoda Track with Prime Minister Marape last year in the lead up to Anzac Day. And one of the honours of my life has been the commemorating our diggers on Isurava at the memorial there on Anzac Day last year. Australia and PNG's relationship was forged.

STEFANOVIC: It makes a lot of sense. Okay, so you've got - you've lost Vanuatu and the Solomons, right?

PRIME MINISTER: No, not at all. We're working closely with both of those countries. Vanuatu - we have an agreement that we're working through, hoping to finalise that. But the PNG deal, of course, is by far our largest neighbour. It's by far the largest neighbour in the Pacific. The PNG has a population equivalent of every other one of the Pacific Island nations. So, it is a very significant deal indeed.

AZZOPARDI: So, now you've got that deal in your back pocket when you head over to Washington D.C. later this month to meet with Donald Trump. How important is that? And are you feeling nervous?

PRIME MINISTER: Not at all. I've had really warm discussions with President Trump and I received a quite lovely letter, I've got to say, of invitation to attend the White House. Australia and the United States have such an important relationship. They're our most important ally. We have an important economic relationship as well. They're major investors here in Australia. America enjoys a trade surplus with Australia. Our defence and security relationship is so important through the AUKUS agreements. I've just been in the UK talking with Prime Minister Starmer and the Defence Minister Healey and others there as well, about how important that is. When I was in the US at the UN, I was able to engage with President Trump, but also with people like Scott Bessent, the Secretary of the Treasury as well, about our important economic relationship, security relationship and people to people relationship as well.

STEFANOVIC: We've got to run, and you do too. More importantly, Parliament back today. You must be nervous about facing a stiff Opposition.

PRIME MINISTER: Look, I'll just continue to watch them fighting each other. I'll be fighting for your viewers and fighting for Australians.

STEFANOVIC: Good to talk to you, PM. Thank you.