The question is… Why are so many New Zealanders moving to Australia right now?

Thousands of New Zealanders cross the Tasman every year in search of a better life. Why are they going? Is the Land of OZ all it’s cracked up to be? And would anything entice them home? Consumer reporter Chris Schulz asked those who are going and those who have gone, then dived into the statistics to find out.

Here’s the full article, which I couldn’t publish when it came out.

Chris reached out to me in late October 2023 to see if I was available for an interview for an article he was researching about why Kiwis are moving to Australia right now. He had just returned from a family holiday on the Sunshine Coast and was stunned at how cheap food and petrol were in comparison to New Zealand.

Here are the findings he discovered for the article. Happy reading…

Diane* feels tired, frustrated, and admits to being a bit annoyed. In 2021, during the Covid-19 lockdowns, she, her partner, and their son moved back to New Zealand after spending nearly a decade in Sydney. They were eager to reconnect with family, especially after Diane learned she was pregnant with their second child during New Zealand’s two-week isolation period.

Relocating seemed like the right decision. Living in Auckland would mean family support, her partner could work remotely for his Australian software company, and she could complete her PhD. “We went for the biggest city in New Zealand because we’re big city people,” Diane says. 

As lockdowns lifted and life returned to normal in Aotearoa, Diane noticed significant economic shifts. Mortgage rates soared, living costs increased, and grocery prices spiked, along with petrol and transport costs went up, and so did the price of almost everything else. 

Having spent so much time in Australia, the comparisons were easy to make, and the differences were hard to ignore. “The whole time we have been assessing … how New Zealand has been dealing with these things,” she says. 

“We’ve found Auckland very abrasive … It just feels like it’s falling apart.” 

‘We should be able to do a lot more’

Additional challenges emerged. Diane found it difficult to secure reliable childcare, and navigating Auckland’s public transport system led them to buy a second car and began fighting their way through the city’s congested roads. 

“Public transport would make our lives cheaper, more environmentally friendly, and enjoyable,” she says. “But it’s completely unsustainable … because it’s so unreliable.” 

Grocery shopping has become a major worry for Diane. To save money, she switched from online ordering to in-store shopping and changed supermarkets from New World to Pak’nSave. Yet, she’s still shocked by the weekly food costs for their family of four.  “I just find it jaw-droppingly different in terms of groceries [compared to Australia},” she savs.” … I feel like every item I put in the trolley is $5 or more. I don’t know how some other families get by with these costs.”

Her disappointment is obvious. Diane feels like her family have tried their best to make life in New Zealand work for them. So far, it’s not. “My partner earns a great wage. It feels like on the salary he gets, we should be able to do a lot more … It’s mind-blowing the decisions we have to make,” she says.

‘The maths doesn’t work for us’

After two years of trying to settle in New Zealand, Diane and her family are ready to leave for Sydney. She anticipates a better quality of life there. “I don’t feel like we will be looked after by New Zealand’s infrastructure or government,” she says. “There’s just not enough money circulating in the economy to be able to take care of the whole country.”

They’ve assessed their finances, and despite moving costs soaring from $7,000 to $15,000, Diane estimates she could earn 35% more in Australia. She believes daily expenses like transport, utilities, and groceries will be lower.

It is, she savs, the right decision for their family. “Knowing that I can earn that much more money in Australia means that I get to spend that much more time with my kids,” she says.

“We know our way around and can … imagine what kind of a life we may end up having over there.”

Who else is making the move?

Many New Zealanders share Diane’s sentiments. It’s hard to find a day without someone complaining about house prices, mortgage rates, food prices or other aspects of the cost-of-living crisis — the things we obsess about here at Consumer NZ too.

Anecdotal evidence suggests many people know someone considering a move, actively preparing, or who have already relocated to Australia in search of relief.

To gather concrete insights, Consumer reached out to numerous individuals, including those who have moved and one who returned. We analyzed statistics and results from our Sentiment Tracker to determine if claims about better salaries and living conditions across the Tasman hold true.

We dived into the statistics, and the results of our own Sentiment Tracker, to see if claims of better salaries, house prices, living conditions and lifestyles are true.

What we found is that it’s more complicated than stories like Diane’s suggest. Yes, moving to Australia can offer better wages and living conditions.

The number of people making the move to Australia is close to as high as it’s ever been. Migration is at record levels, according to Stats NZ, with 53% of those leaving New Zealand in search of a better life choosing to head to Australia. 

Many we spoke to were happy with their decision. But several lamented the loss of regular contact with close family and friends—something that’s not so readily available when flights across the Tasman need to be booked.

“There’s always an element of homesickness,” said Amy Potter, who moved to Sydney in 2020 after landing her dream job. “There’s something special about New Zealand. It will always be home.” 

So what’s making everyone leave? 

The number of people making the move to Australia is close to as high as it’s ever been. 

Migration is at record levels, according to Stats NZ, with 53% of those leaving New Zealand in search of a better life choosing to head to Australia. 

In the year to June 2023, 40,600 New Zealanders crossed the ditch – an average loss of 3,383 people every single month. (Those losses are mitigated by arrivals — 19,100 came to New Zealand from Australia in the same time frame.) 

Those who are leaving appear to share Diane’s feelings about the state of the country. The most recent figures from Consumer’s Sentiment Tracker show New Zealanders’ biggest concerns are the same as hers: the rising cost of living and the state of the economy.

As many as 28% of respondents report a decline in their standard of living in the last 12 months. And as many as 37% expect their savings will decline over the next 12 months.

Statistics like that are what entice people to make the move, says Johanna Smith, the founder of the website MovingToAustralia.co.nz. Smith gets asked about those kinds of things daily. “At minimum,

I get four [inquiries] a day from New Zealanders who are moving,” she says. “The grass has always been greener in Australia for a lot of people.”

Smith started her website in 2008 when she was making the move herself. She ended up moving back to New Zealand for the same issue many who go struggle with: she missed her extended family too much.

But she kept her website going to help support her husband’s moving company. Thirteen years on, it’s an essential tool for anyone with questions about packing up and moving.

Currently, she’s busier than ever, attributing this to higher wages, lower living costs, and more affordable housing. “Buying a home has become unattainable for most New Zealanders,” she remarks. “With rising food and petrol prices, more people are contemplating the move.”

“Now that the food and the petrol is so high as well, it has definitely made people think, ‘Oh flip, maybe I should actually do it.’”

What can they expect upon arrival?

Salary rates

In 2017, Sonya, a first-year teacher, found life in Napier challenging. “I had a horrendous time … the workload, poor pay and support from the school [left me] incredibly depressed,” she says. “I had never felt so poorly and started drinking quite a bit on the weekends.” 

Her contract wasn’t renewed, so, at the age of 24, she booked herself a one-way flight to Darwin.

She was offered a job with a better salary within 4 days. Several years on, she’s joined a netball team, made a new friend group through work, and is earning enough to be able to spend her spare time travelling with her new husband. 

When it comes to salaries, the numbers don’t lie. Across many careers, you are likely to earn more if you move to Australia. In New Zealand, Stats NZ says the median weekly salary is NZ$1,273; in Australia, the Australian Bureau says its average is A$1,838 (NZ$1,956). 

“I felt like I was working my arse off in New Zealand and never had money to do anything,” Sonya says. “I am saving money and actually feel as if I’m stepping up in the world.” 

Would she come home? No way. “It was something I had to do for myself, and I’ve never looked back.” 

House prices

Jose Litre and his wife Julieta, along with their 10-year-old son and their dog Rollie, made the decision to move to Adelaide over a year ago.

The family had already shifted from Auckland to Taranaki in 2019 to try to save money. Yet, despite cutting their transport and mortgage costs, they still found money tight.

“Even though we lived in New Plymouth, and I had an Auckland-based salary … the cost of living was getting pretty high,” says Litre. “We couldn’t really put any money aside.”

So they moved again. In Adelaide, they purchased a near-new four-bedroom home for A$500,000 (NZ$531,985) about half an hour outside of the central city.

If you want to spend your extra income on a house, the average property prices between the countries

are about even: in New Zealand, REINZ reports it’s NZ$779,830 as of December; in Australia, Property Update says it’s A$757,746 (NZ$806,219).

According to the Reserve Bank of New Zealand, mortgage rates are slightly higher in New Zealand: a 7.76% average for a 1-year fixed-term rate as of December 2023, compared to 6.42% in Australia.

In New Zealand, the amount you pay will be heavily dictated by where you want to buy your house. In Auckland, according to the QV House Price Index January results, you’ll pay an average of $1,291,387; in Wellington, it’s $1,009,818; and in Christchurch, you’ll pay $765,104.

Same goes in Australia. Sydney remains the most expensive city in Australia to purchase property, with an average sale price of A$1,128,322 (NZ$1,200,381). Property is more affordable in Melbourne at A$780,457 (NZ$830,300), Brisbane at A$787,217 (NZ$837,491), Adelaide at A$711,604 (NZ$757,050) and Perth at A$660,754 (NZ$702,952).

Migrants should also note that every house purchase in Australia comes with an additional stamp duty. Depending on which territory you’re buying in, it can be as much as 3-4% on top of the sale price.

However, other housing factors come into play. Litre says their home in New Plymouth was cold and

difficult to heat. In Adelaide, he says their four-bedroom home is nearly new, with air-conditioning keeping the house warm in winter and comfortable in summer.

Because of the cheaper mortgage, the family has been able to save and will make their first post-Covid trip back home to Argentina in late 2024, something Litre says was difficult to do while living in New Zealand. 

Living expenses

Litre has solar panels on his home, so saves money on his power bills too. “All the houses come with solar panels [so] we pay A$40-$50 (NZ$43-$53) a month for power during summer, and A$100-$120 (NZ$106-$128) during winter,” he says. 

He finds food and petrol prices are lower in Australia too. “It’s so much more affordable … The cost of living is so much less.” Is he right? 

When it comes to power bills, yes. In New Zealand, the average monthly power bill is $184, according to statistics supplied by MBIE compiled between March 2022 and March 2023. In Australia, according to Comparethemarket.com.au, it’s A$137 (NZ$146). It’s worth noting that power bills averaged across a year may look different to your current usage, as power bills considerably vary between households depending on seasons and circumstances. 

Food prices are a little harder to measure. Research undertaken and reported by The Spinoff and Stuff.co.nz last year suggested New Zealanders were paying up to 25% more than Australia for their groceries, but a more recent survey undertaken by Interest.co.nz shows that gap closing to just 3%. (The two countries also have different policies when it comes to GST on food. In New Zealand, it’s 15%; in Australia, it’s 10%, and many staple food items are exempt.) 

New Zealand had an 8% food price index increase to September, according to Stats NZ, compared to Australia’s 4.7% increase to September. 

There’s no denying petrol is cheaper in Australia. When Consumer checked Gaspy, the average monthly price for a litre of 91 in New Zealand was $2.82 between 23 January and 20 February this year. In Australia, according to Fuelwatch, it’s A$1.88 (NZ$2) for the month of February. 

Rent 

Jean Black, who moved to Melbourne, describes her decision as one of the best she’s made. The 71-year-old retired and moved into her daughter’s granny flat, quickly integrating into the community through bridge and bowling clubs.

“Everyone is extraordinarily friendly and welcoming,” she says. If you’re looking to rent when you move to Australia, the average weekly price to rent a three-bedroom property in Australia is A$620 (NZ$660), Mozo reports, compared to NZ$580 in New Zealand, according to Figure.nz. 

But, like house prices, it depends on where you want to rent. In Auckland, you’ll pay, on average, about $650 for a three-bedroom house. In Christchurch, that drops to $510. In Sydney, the average rental rates rise to A$750 (NZ$798); in Brisbane it’s $620 (NZ$660) and Adelaide it’s just A$560 (NZ$596). 

Black encourages friends back home in New Zealand to consider relocating too. “I would recommend any other older folks who have limited or few family members in NZ to take the plunge,” she says.

Clearly, things need to change if we don’t want to keep losing people to Australia. Big things like house prices and mortgage rates continue to be major social issues.

‘Things are just a lot better here.’

In 2020, Amy Potter was living in Auckland with her partner. They weren’t looking to move, but Potter had a goal she was struggling to fulfil: to buy a house and get a dog. 

Then she came across her dream job as marketing director at Twitch’s Sydney office. She applied, got hired, and relocated during a brief travel window between the two countries.

Now, three years later, Potter has more than doubled her New Zealand salary. She realized her dreams of homeownership in 2021 and got a dog a month later, an Australian Shepherd she and her partner called Loki.

Everything others point to as a benefit of moving to Australia, she’s found to be true. “We didn’t really know what it would be like,” she says. “But I have loved it.” She’s earning a higher salary and finds food prices and other bills cheaper; the only difference is that stamp duty is charged on house and car purchases.

So Potter’s staying put. Her higher income allows her to save, travel, and do everything she wants to do with her life. “It’s hard to ignore how many things are just a lot better here … I don’t have any regrets,” she says. “I just feel sad for New Zealand. I feel guilty for leaving and not supporting the country that I so badly wish to see grow.”

Clearly, things need to change if we don’t want to keep losing people to Australia. Big things like house prices and mortgage rates continue to be major social issues; so, too, is the supermarket duopoly, which Consumer continues to monitor and campaign against. The results of our Sentiment Tracker prove people want to see real change when it comes to the country’s cost of living problems.

As this story was going to print, Potter was made redundant from her dream job after major cutbacks were made at Twitch. But even that isn’t enough for her to consider returning to Aotearoa. “I’m looking for the next thing I can bring my passion to,” she wrote on X (formerly Twitter) a day later. “Please let me know of any openings, remote or Sydney-based.”

*Names changed to protect identities.
*All NZD conversion figures are accurate as of February 2024.

A note from editor JJ Smith

I’m very proud to have contributed to the above article. I helped put Chris in touch with some of my visitors who were willing to share their experiences, and he included some of the conversations we had about New Zealanders moving to Australia. This is me:

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