Defence Minister Gerry Brownlee believes Australia and New Zealand are "adequately prepared" for potential terror threats.
Mr Brownlee hosted his Australian counterpart, Senator Marise Payne, in Christchurch yesterday in their first formal meeting with Islamic State on the agenda.
He says he's comfortable with the level of protection the region has, but can't be completely sure a major terror event couldn't happen in New Zealand.
"The last thing you want is to have a threat of someone who is a complete nut job, as these people are, doing something and causing everyone else to have huge disruption in their life. That's giving in to the whole purpose of terrorism," Mr Brownlee says.
The meeting between the ministers comes a year after two people were killed during the terror siege at Sydney's Lindt Cafe.
Mr Brownlee says the anniversary is a grim reminder that terror attacks can occur close to home.
"Our part of the world is not immune from the sort of crazy activities the Daesh followers choose to engage in, and from that point of view we have to be on alert when there are people on a watch list."
The New South Wales state coroner has issued a statement, expressing his condolences to the siege victims' families.
Meanwhile, a security expert believes a terror attack in New Zealand is possible, despite the distance from the war zone in the Middle East.
Victoria University Professor of Strategic Studies Robert Ayson says we can never be fully protected.
"Governments cannot offer pure safety or security. If they offer absolute security then we have to disbelieve them."
3 News / RadioLIVE