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planning to travel Dubai to Christchurch via Sydney. Flight layover time will be 2 hrs maximum.Does an Indian citizen need a transit visa in Australia ?

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Yes, you need a visa according to Timatic https://www.timaticweb2.com/integration/external-result/olo1H3LBkm5xMlVNrR74hIbZ6yvk

Holding a B1/B2 visa is irrelevant.

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