Passengers were able to depart NZ for NSW on Air NZ and Jetstar flights from Auckland International Airport for the first time in months, as the travel bubble was expanded across the Tasman.
A limited trans-Tasman travel bubble has opened, with the first flight from New Zealand touching down in Australia earlier.
"The Victorian government has made it clear to the Commonwealth that we expect that New Zealand passengers who have not been quarantined will not be allowed to fly to Melbourne in Sydney", DHHS said. "I am not sure that any of them would necessarily need to be tested".
NSW are accepting flights as part of the transtasman bubble from New Zealand.
New South Wales Premier Gladys Berejiklian said she hoped New Zealand would loosen restrictions on people arriving from Australia soon. "I wanted to know about quarantining or anything that I needed to do, and they told me that I should be fine". "If I go to Victoria, I'm not expected to quarantine, because it isn't a source of Covid-19". The Ministry of Foreign Affairs and Trade said it had not yet been approached "for consular assistance".
"Victoria has not agreed to a travel bubble arrangement with New Zealand and did not expect to receive worldwide travellers as a result of NSW making that arrangement", the DHHS statement said.
It remains unclear whether the 17 travelers were allowed to stay in Melbourne or whether they were sent back to Sydney - where they would now have to be isolated in hotel quarantine for 14 days after entering Victoria.
Australian MP Tim Wilson has questioned why 17 Kiwi travellers were detained in Melbourne.
Australian borders open to travellers from New Zealand - Xinhua | English.news.cn
"Until Australian Border Force give us the cards, we have no way of knowing", he said.
Airport staff were also remarking to each other about how good it is to see people back in the worldwide terminal.
Australia was beginning to relax virus restrictions in June when a bungled hotel quarantine system in Melbourne leaked coronavirus into the community, sparking a second wave which infected thousands and killed more than 800.
Earlier on Friday afternoon, Morrison said about 230 New Zealanders had arrived in Sydney.
Mr Andrews expressed his frustration about the incident, saying he has written to Prime Minister Scott Morrison.
She said there was a flurry of activity at the global terminal, and people excited to be returning home or seeing family for the first time in many months.
Eight Qantas repatriation flights will arrive from London, New Delhi and Johannesburg over coming weeks.
Those arriving in New South Wales and the Northern Territory in Australia will not have to quarantine - with zero cases now reported in New Zealand.