New Zealand is preparing itself for a ban on mulesing sheep.
The ban is part of broader regulations in the market, with regulations enforced from October 1.
Those who continue to mules could potentially face criminal conviction, as well as a fine of up to NZ $3000 for an individual or NZ $15000 for the business.
PETA director of campaigns Mimi Bekhechi urged Australia to follow suit.
"Mulesing – a painful mutilation procedure in which wool farmers restrain lambs' legs between metal bars and carve huge chunks of skin from their backsides – is now rightly banned in New Zealand, and Australia's failure to take similar meaningful steps to end this cruel practice is shameful and damaging to our country's reputation internationally.
"It's been over a decade since the Australian wool industry promised to "fast-track" itself away from mulesing, and still, the majority of Australian wool comes from lambs who were subjected to this cruel practice, most of them without any pain relief.
"Cruelty-free fashion that doesn't harm a hair, fur, or feather on an animal's head is the way of the future, such as items made with the many plant-based fibres available, and shoppers everywhere are turning to these humane options to fill their fashionable wardrobes."