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I'm an Indian citizen and I'm planning to travel to NZ. Upon checking the flight prices from IND to NZ vs IND-AUS-NZ, there seems to be a significant difference. Thus, I'm planning to transit through Australia. My question is that although Australia provides a Transit visa for 72 hours, does it allow multiple entry because accordingly, I can buy tickets for both legs of my journey? Also during the transit time, would I be able to go outside the airport and visit and few places nearby?

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…during the transit time, would I be able to go outside the airport and visit and few places nearby

Yes. A Transit Visa (subclass 771), allows the holder to enter and remain in Australia for up to 72 hours for the purpose of transiting.

…does it allow multiple entry?

No. You enter, spend up to 72 hours in Australia, and leave, at which point your transit visa expires. If you want to transit on your return journey, you’ll need another transit visa. See also this related question

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