Abbott finds a 'soul mate' in Key

Australian Prime Minister Tony Abbott has found his soul mate.

His political soul mate, that is.

Mr Abbott on Friday said he had New Zealand and its prime minister in mind when he coined his election winning phrase "Australia is under new management".

Praising the policies and political savvy of his counterpart John Key, Mr Abbott described him as a soul mate and mentor.

"When I said on election night last year that 'Australia is under new management and open for business' I have to say I did have NZ in mind," Mr Abbott told business leaders at a lunch in Sydney.

"I do welcome Prime Minister Key not just as a brother, but as a soul mate.

"Not just as a friend, but as a mentor."

Mr Abbott said the relative size of government in New Zealand had fallen to 30 per cent of the economy, down from 35 per cent.

"As governments get smaller, citizens get bigger," he said.