Fiamē Naomi Mata'afa was greeted by Anthony Albanese on Wednesday and received a ceremonial welcome in the Parliament House forecourt.
The leaders then went into a bilateral meeting.
Details of a "bilateral partnership agreement" understood to cover education and health are expected to be released later in the day.
Ms Fiamē has put climate change action and the need for more regional consultation on the agenda.
She has pushed for an end to fossil fuel subsidies and more financing for climate resilience projects in the Pacific.
The Samoan leader also floated the idea of European-style free movement across Australia, New Zealand and Pacific island nations.
"That whole concept there of the European common market, we've been talking about that in the Pacific for a long time," she told a Lowy Institute event ahead of her talks with the prime minister.
"I think we need to explore that."
She said people were having a difficult time trying to come to Australia or New Zealand to visit relatives or go on holiday.
Mr Albanese said the government's record on climate action had helped bolster relationships in the region.
"The entry fee for good relations in the Pacific is action on climate change," he told parliament.
"They take that issue more seriously than any other because it's a threat to their very existence. That's why these relationships are so important."
Ms Fiamē will be the eighth Pacific leader the government hosts as it works to build Australia's standing in the region.
Mr Albanese will also host his counterpart for dinner at The Lodge on Wednesday night.
"These relationships are very important for Australia's future. They're important for the region and will continue to work constructively," he said.
Opposition foreign affairs spokesman Simon Birmingham said Ms Fiamē's visit and speech calling for more action on climate change underpinned the need for global co-operation to tackle the issue.
"Globally, countries working together can change the dial when it comes to projections for climate change and the voices of Pacific island nation leaders are perhaps the most powerful voices," he said.
21°C