The funny thing is, New Zealand was already faring under a wage and price freeze imposed by our Prime Minister here in 1982 - which remained in effect until 1985. We were already operating under a siege economy, and I imagine these regulations would be expanded as war broke out in Europe. With that said, I imagine chronic shortages, the collapse of international trade, and other associated shocks would devastate the economy.
In regards to whether Australia is targeted, from what I recall it directly contradicts leaked Soviet documents (can't find the old relevant article) which suggested they had little to no interest nuking either Oceanic countries. Both Australia and New Zealand were always going to play a subordinate role in any conflict, which I imagine informed their planning. Any Soviet submarine that sails into range would have to run through a gauntlet of Allied ASW forces. My guess? Pine Gap cops it and another countervalue target like Perth if they're really unlucky.
The fact is, there are far more varied and valuable targets in Europe, North America and Asia.
Another major concern is refugees, Bob Hawke had previously opposed admission of the Boat People as a union leader in the 1970's and Muldoon presided over a viciously xenophobic campaign in 1975 opposed to Polynesian immigration. I can't see either country being humanitarian.
