(Pacnews)

New Zealand has rejected Australia's latest proposal for a common currency, with the Minister of Finance Micahel Cullen saying it was never a consideration.

Australia's House of Representatives standing committee on legal and constitutional affairs considered the possibility of harmonising the legal systems of the countries.

It suggested Australia and New Zealand should also consider introducing a common currency.

But Mr Cullen told reporters the idea of a closer union between Australia and New Zealand, specifically a common currency, had been "“mooted before and rejected before".”

"There's no such thing as a common currency on the table and there never has been," he said.

"The Australian Government has made it clear that if we wish to adopt their currency we can do so.

"There's never been a suggestion of a common currency between the two.

"“There's been a suggestion that New Zealand might adopt Australia's currency, we are not going to do that."

The advantages of a common currency include a lessening of volatility in the cross rate with Australia which would lessen the risk for business.

"“It doesn't necessarily lessen volatility with the rest of the world and most of our trade is denominated in US dollars not Australian dollars," Mr Cullen said.