Better pay, cheaper rent: inflation-squeezed New Zealanders leave for Australia in droves

“We are paid so much better here,” said Connie Valdez Gamalinda, who moved with her husband and young daughter to Geelong, near Melbourne, from Porirua, near Wellington, earlier this year.

The early childhood worker earns A$11 (US$7.20) an hour more and was offered a relocation package of around A$17,000. Her husband Alvin, who works in mental health support, saw his pay double.

“And it’s not only the pay, rental properties are so much cheaper here, even the utilities are so much cheaper compared to New Zealand,” said Valdez Gamalinda.

Some 44,534 New Zealanders, almost 1 per cent of the nation’s population of 5 million, left to live in Australia in 2023. The net migration loss, which takes into account Australians moving to New Zealand, was 27,011 last year, an 85 per cent increase on 2022 and the most since 2013.

The two economies have taken different paths as they navigate the post-pandemic cost-of-living crisis. While Australia’s central bank has focused on engineering a soft landing for its economy during the fight against inflation, New Zealand raised interest rates more aggressively, resulting in a double-dip recession that looks set to continue this year.

New Zealand’s unemployment rate rose to 4.6 per cent in the second quarter. By comparison, Australia’s rose to 4.1 per cent in June.

“We’ve got a very weak economy in New Zealand and there are a lot of opportunities in Australia and obviously pay is a real attraction for many Kiwis,” said Jarrod Kerr, chief economist at Kiwibank in Auckland. “It’s been quite a long hard road here over the last 18 months and it’s continuing.”

Average weekly earnings in Australia are A$1,888. That compares with NZ$1,586 in New Zealand, which is the equivalent of A$1,453. That means Kiwis