Australia has sent a search and rescue team to Christchurch to help New Zealand authorities deal with the aftermath of a major earthquake.
Prime Minister Julia Gillard told parliament she had spoken directly with NZ Prime Minister John Key, following an emergency meeting of his cabinet.
Australia would provide any assistance requested by NZ, she said, adding the search and rescue team was "literally on its way".
"There is likely to be a lot of searching to do under the rubble."
While details remained sketchy, authorities on the ground in Christchurch were reporting "multiple fatalities".
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Ms Gillard said the images streaming out of Christchurch were "truly shocking".
"People wandering around with blood literally streaming across their heads and faces. "Images of buildings that have been reduced to rubble."
Water, electricity and phone services had been severely disrupted, Ms Gillard said.
Ms Gillard said it was too early to say how many Australians were in Christchurch, but the national women's cricket team, which had been training there, were safe.
"We've got no reports at this stage of Australian fatalities," she said, adding that three consular officials were assisting on the ground.
Opposition Leader Tony Abbott joined Ms Gillard in extending "thoughts and prayers" to the people of New Zealand.
"Australia stands ready to do whatever we practically can to help," he said.
