The Federal Government will consider further easing sanctions against Zimbabwe following discussions with Prime Minister Morgan Tsvangirai in Canberra.
Mr Tsvangirai is holding talks with Prime Minister Julia Gillard today.
Trade Minister Craig Emerson says Mr Tsvangirai has "a wonderful history" of fighting for freedom and heads an inclusive government.
"We will be listening to advice from Prime Minister Tsvangirai about the issue of sanctions," he told ABC Television.
"If he indicates to us that there is a case for easing some sanctions, that is to reward the reformers and show the hardliners that reform does actually pay dividends, then we will be open to those sorts of arguments."
Australia imposed targeted sanctions against Zimbabwe in a bid to pressure its President Robert Mugabe and his regime to restore democracy and the rule of law.
In March the government eased some sanctions, removing 82 regime loyalists from its financial and travel sanctions list.
The government maintains travel and financial sanctions against 153 individuals and four entities allied to Mr Mugabe.
Prohibitions on defence links and a ban preventing adult children of listed individuals studying in Australia remain in place.
AAP mb/rl/mss 23-07-12 0859