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Kiwi exodus

By Duncan Graham - posted Thursday, 5 January 2012


The minimum wage in NZ is $13 – that's equal to ten dollars in Australia where the minimum wage is more than AUD $15. However the reality is that in many areas of Australia people can't be coaxed into the workforce for anything under AUD $25.

In Australia there's a tax-free threshold on earnings of AUD $6000. In NZ workers – and pensioners – pay 12.5 per cent tax on the first dollar they receive.

There's another significant disparity. GST is 15 per cent in NZ (ten per cent in Australia) and there's no exclusion for fresh foods. NZ growth is 1.1 per cent, less than half Australia's 2.7.

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Australians moving to NZ are struck by the impotence of trade unions. In most NZ industries workers are faced with individual workplace contracts and the chance of being sacked – no reason required – in their first 90 days on the job.

The NZ unemployment rate is 6.3 per cent, compared to 5.3 in Australia. The jobless burden is carried mainly by Maori and Pacific Islanders, particularly the unskilled. Meat works and timber mills, the traditional employers for the low skilled, have been closing across the country.

Some of these people are heading for Australia, particularly if relatives have already made the journey and established a base. Queensland is most favoured, taking 40 per cent. The climate is warm, there are plenty of jobs in the mining industry, and a flight to Auckland is a mite more than three hours.

Particularly worrying is the loss of medical and other professionals whose Kiwi qualifications are accepted in Australia. Kiwi locums have been offered NZ $6,000 a weekend to cross the Tasman to keep practices and hospitals open.

Meanwhile in Wellington the just re-elected National government is slashing the bureaucracy. During the campaign the public service union ran ads showing a map of Australia captioned: 'The only place where your skills will be wanted.'

Before the economic crisis of 2008 NZ welcomed thousands of Asian workers – mainly Filipinos – to fill jobs on farms and aged care homes. Now they're being sent back and bosses are being pushed to employ locals.

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In the past skilled workers mainly came from the UK, though there's a growing movement of qualified Chinese to NZ, particularly Auckland. If the present trend continues by 2026 there'll be almost 800,000 Asians in NZ, challenging Maori as the country's second largest minority.

Of course there are upsides to life in NZ, a nation with about 4.4 million people and seven times that number of sheep. For those who hate Australia's long blistering summers NZ offers a splendid green haven. In Wellington anything over 22 degrees is considered a heat wave demanding a beach party.

For Ed Hillary types NZ is the ideal place to tramp, cycle, climb and ski all year round. Wags comment Kiwis have to stay outside – TV programmes are crass.

Because the islands are so narrow, warm waters or snowy summits are seldom more than a day's drive.

The purchasing power of the Aussie dollar means much seems cheap in NZ, including housing. Your AUD $750 will yield about NZ $1000. The smaller cities are compact and roads good. Freeways clog in Auckland, as they do in every Australian capital, but seldom elsewhere.

Australians seeking to escape searing heat, Americanised culture and gruelling drives should consider NZ. One million tried last year, but carried return tickets. Try staying and investing - your move might just help keep NZ from becoming the Ireland of the South Pacific.

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About the Author

Duncan Graham is a Perth journalist who now lives in Indonesia in winter and New Zealand in summer. He is the author of The People Next Door (University of Western Australia Press) and Doing Business Next Door (Wordstars). He blogs atIndonesia Now.

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