Anyone born after 2008 will not be able to buy cigarettes or tobacco products in their lifetime, under a law expected to be enacted next year.
New Zealand is determined to achieve a national goal of reducing its national smoking rate to 5% by 2025, with the aim of eventually eliminating it altogether.
As part of the crackdown announced on Thursday, the government also introduced major tobacco controls - including significantly restricting where cigarettes can be sold to remove them from supermarkets and corner stores.
The number of shops authorised to sell cigarettes will be drastically reduced to under 500 from about 8,000 now, officials say.