After a year in Australia: 'Honestly, this place is cheaper than NZ'
When I left NZ, it seemed I was part of an exodus. Little did I know that exodus was only going to intensify.
It seems every other week, another friend or colleague announces their move across the Tasman. And, look, the lure of Australia is undeniable – better pay, improved working conditions, and yes, the sunshine.
Watch Aziz's price comparison in full on TVNZ+
A year on, we now know more than 85,000 New Zealanders have flocked across the ditch. It seems while the ibis might be notorious for scavenging, the kiwi is now the one crossing the ditch in search of better pickings.
Here’s why.
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Let’s kick things off easy with housing. According to CoreLogic’s latest figures, if you’re looking to buy a home, Australia seems to have the edge (unless you’re planning to buy in Sydney, then good luck).
The median house price in Australia is, in NZ dollars, just over $880,000, compared to New Zealand’s $931,000, Even in the pricey cities of Sydney and Auckland, the numbers are comparable, with homes costing nearly $1.3 million.
If you’re renting like me, you’re going to be paying more though, especially if you’re living in Sydney. The average national Aussie rent is around $695 per week, while TradeMe says it’s slightly cheaper in New Zealand at $610.
But if you’re in Auckland, prepare to shell out about $660 weekly compared to Sydney’s eye-watering $820.
Utilities and Groceries
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When it comes to utilities, shock-horror, Australians again come out on top. Canstar Blue shows the average monthly electricity bill is $122, far cheaper than the $196 Kiwis pay. And in Australia, we pay our power quarterly.
Personally, because I live on my own here, my bill roughly hits $200-$250 every three months.
When it comes to groceries, prices are on the rise in Australia, with the latest figures showing they are actually the most expensive we’ve seen in a while. The kicker is we are spoiled for choice when it comes to our supermarkets.
The Australian Bureau of Statistics says the average Australian household spends about $208 a week on food, while New Zealanders are hit with a whopping $300 weekly bill (Source: Stats NZ).
It appears more competition and scrutiny in the Aussie market drive prices down, giving shoppers better deals.
Salaries: Show me the money
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The average weekly wage in Australia is around $2,094, adding up to nearly $109,000 annually (Source: Australian Bureau of Statistics).
Compare that to New Zealand’s $1,593 weekly wage, or about $80,000 a year (Source: Stats NZ), and the difference is stark.
This earning potential is a huge draw for Kiwis, especially professionals like nurses and police officers, as highlighted in my Great Brain Drain series. 1News revealed 322 New Zealand officers applied to work with Queensland Police in the last year, and our nursing sector has lost nearly 24,000 registered nurses to Australia. Those are only the ones we know of who have registered under the Trans-Tasman Mutual Agreement.
With a salary increase of almost 30% in some cases, the promise of higher pay and better working conditions is hard to resist.
A mixed bag of inflation and employment
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It is no secret Australia is also grappling with its own cost-of-living crisis, but there's a silver lining. Recent figures show a robust job market with low unemployment in June 2024 (Source: ABS).
Meanwhile, in New Zealand, inflation has dipped slightly, leading to a cut in home loan rates, but unemployment remains a concern as many Kiwis seek better opportunities abroad.
The overall picture
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Is the move worth it? For many, it seems the answer is a resounding yes.
But Australia does have its own cost-of-living challenges. People are struggling to pay their rent and keep their fridges stocked.
As a Kiwi who has just come here, I can say hand on heart the cost of living in New Zealand is just as bad as Australia, made worse by our lower salaries.
With that said, while it’s crucial to weigh individual circumstances and long-term goals, the grass does seem greener on the other side.
But I’m still holding out hope for New Zealand. Addressing these issues at home could help retain our talent and make our own patch of grass just as green.
After all, there’s no place quite like Aotearoa.
Sources:
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• Australian Median House Price: CoreLogic Australia
• Sydney Median House Price: CoreLogic Australia
• NZ Median House Price: CoreLogic NZ
• Auckland Median House Price: CoreLogic NZ
• Australia Rent: CoreLogic Australia
• NZ Rent: TradeMe
• Australia Power: Canstar Blue
• NZ Power: Canstar Blue
• Australia Groceries: Finder, Australian Bureau of Statistics
• NZ Groceries: Stats NZ, Wise Move
• Australia Salary: Australian Bureau of Statistics
• NZ Salary: Stats NZ
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www.1news.co.nz...
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Poll: Are our Kiwi summer holidays helping us recharge, or holding the economy back? ☀️🥝
There’s growing debate about whether New Zealand’s extended Christmas break (and the slowdown that comes with it) affects productivity.
Tracy Watkins has weighed in ... now it’s your turn. What’s your take? 🤔
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73.1% We work hard, we deserve a break!
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16.2% Hmm, maybe?
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10.7% Yes!
Brain Teaser of the Day 🧠✨ Can You Solve It? 🤔💬
How many balls of string does it take to reach the moon?
(Peter from Carterton kindly provided this head-scratcher ... thanks, Peter!)
Do you think you know the answer? Simply 'Like' this post and we'll post the answer in the comments below at 2pm on the day!
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Minimum wage to increase from April next year, Govt commits to bigger rise than last year
The Government will increase the minimum wage by 2% from April next year.
Workplace Relations Minister Brooke Van Velden announced the hourly wage would move from the current $23.50 to $23.95 in line with advice from the Ministry of Business, Innovation and Employment.
“Moderate” increases of the minimum wage formed part of NZ First’s coalition agreement with National.
Van Velden says the new rate, which would impact around 122,500 New Zealand workers, strikes a right balance between keeping up with the cost of living – the Reserve Bank expects inflation to fall to around 2% by mid-2026 – and no adding more pressure to the costs of running a business.
The starting out and training minimum wage would be move to $19.16 to remain at 80% of the adult minimum wage.
The minimum wage was last increased on April 1 this year. That 1.5% increased to $23.50, affecting between 80,000 and 145,000 workers, was not at the time in line with inflation which sat around 2.5% in March.
“I know those pressures have made it a tough time to do business, which is why we have taken this balanced approach. With responsible economic management, recovery and relief is coming,” Van Velden said.
“I am pleased to deliver this moderate increase to the minimum wage that reflects this Government’s commitment to growing the economy, boosting incomes and supporting Kiwis in jobs throughout New Zealand.”
Official documents from the Ministry of Business, Innovation and Employment (MBIE) show the department provided the Minister with seven options for the minimum wage, ranging from maintaining the current rate or increasing by 3% up to $24.20 per hour.
A 2% increase was recommended, the Ministry said, as this was ”considered to best balance the two limbs of the objective - protecting the real income of low-paid workers and minimising job losses."
“CPI inflation forecasts suggest annual inflation will ease to be within the 2–2.5% range in the first half of 2026 and remain relatively stable at around 2% from June 2026 through to 2028.
“These forecasts indicate that a 2% increase would largely maintain the real income of minimum wage workers relative to the level of the minimum wage when it last increased on 1 April 2025.”
Officials said a 2% increase wouldn’t have significant employment restraint effects.
But given recent economic data, including a Gross Domestic Product (GDP) contraction and elevated unemployment, MBIE said it favoured a “cautious approach”.
“A 2% increase to the adult minimum wage is expected to affect approximately 122,500 workers, including those currently earning at or below the minimum wage, or between the current rate and $23.95.”
The key groups that would be impacted include youth, part-time, female, and Māori workers, as well as sectors like tourism, horticulture, agriculture, cleaning, hospitality, and retail.
“While these workers would benefit from a wage increase, they may also be more exposed to employer responses to increased labour costs such as reduced hours or adjustments to non-wage benefits,” the ministry said
“The estimated fiscal cost to government from this increase is relatively modest, at $17.5 million annually, consistent with the small cost estimates across all rate options.”
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