-JOHN FRANKS
I’ve lived in both countries extensively (approx 20 years in each). Australia is definitely wealthier, although that doesn’t mean you as an individual would be wealthier in Australia.
NZ offers more, in my opinion, in terms of things to do (recreation). That’s because I love boating, and Australia just doesn’t have as attractive a coastline as NZ for boating. I’ve written about this before, so won’t harp on, but there’s no comparison between the countries if you love fishing and diving - NZ hands down.
If you are an average worker, teacher, middle-income kind of person without rich parents, stay away from NZ. You’ll never afford a house, be stuck in a cycle of low wages and high living costs. Australia offers you vastly more opportunities from almost every angle. Australia is wealthier, so there are heaps of tax breaks and incentives for the working masses, and much higher wages.
If you are a tradie (builder, plumber), NZ offers a lot. You can run your own business, build a spec home in your spare time and flog it off for a tax-free profit - you can really set yourself up nicely. NZ is the land of tradies - they make truckloads of cash - more than anyone else who has remained in the country. To further help tradies, appreciate that NZ has high immigration and a low population. Immigrants come in, build a house, and take some crap low-paying job (most jobs in NZ are low paid - remember - low wage economy). Lots of houses get to build, lots of property speculation, tradies get rich. Meanwhile, wages stay low as money goes into houses as opposed to businesses (businesses are capital poor) .
If you are a tradie who likes fishing and diving, don’t leave NZ - ever. You’ll have a never ending supply of houses to build (high immigration, immigrants sink all their cash into their house not businesses) and the coast is second to none.
If you have rich parents and like fishing and diving - NZ hands down. You can work in one of NZs squillions of low paying jobs (nearly all jobs are low paying compared to Australia), and enjoy the wealth of your parents (launch, coastline, etc).
If you have average or poor parents, and don’t like fishing and diving and are not a tradie, get the hell out of NZ and only return when your asset base is really high and you can live well - if you want to. Many stay away.
Of course , there are exceptions. There’s no doubt engineers and teachers and nurses who live well in NZ for various reasons , but they don’t get paid much and houses cost a fortune so if they own their own house they either bought it ages ago or came upon money from elsewhere or have a high earning spouse . Even doctors get paid nothing in NZ compared to Australia .
If you really want to have a great lifestyle in NZ, leave school at 15. Not a moment later. Get an apprenticeship (builder) . Learn your trade well, build spec houses . Guaranteed to make millions, and what tradie doesn’t like fishing and diving. Trusted formula - bullet proof in NZ. I am serious here - you are wasting your time at school in NZ if you want to get rich in NZ - get out of school and start an apprenticeship in building . If you do make the mistake of going to Uni in NZ (I did Engineering), the minute you graduate get on a plane and leave - go to Australia immediately and don’t return until you are “made”. NZ , comparatively, offers almost nothing compared to Australia for the average worker or professional person.
In Australia , go to University and become a professional something (lawyer, Dr, Accoutant , IT professional, Teacher). You’ll do well. Australian Universities are much higher ranked (than NZ), more research focussed , more of a knowledge economy. Immigration rates (per head of population) lower in Aus, so not as many new houses (per capita), and more competitive for tradies , so in Aus you are better off going the professional route and are rewarded with much better pay. You can always go for holidays in NZ, as millions of Aussies do , and earn the $ in Aus.
I like kiwis and Aussies. I like both countries. But NZ hasn’t transitioned it’s economy from one based on low cost commodity agriculture products, tourism and housing to one based on more knowledge based services and high end industry. Australia has made this transition - is more educated , wealthier as a result. Even mining on Australia is high tech - automated extraction, driverless trains. I’m not suggesting this transition is easy to make , but a good start for NZ would be to invest more it it’s Universities.
Rather than having 50 tertiary institutions that offer courses on underwater basket weaving, at least have a few that are well resourced to undertake top end research. Rather than encouraging every dollar everyone earns to go into housing (and tradie boats and holiday homes ), incentivise people to take some risks and invest in growing high value industries - industries that promote productivity and wage growth. NZ is a way off transforming, so will remain on a low growth low wage trajectory where it needs high immigration to inject money into housing , grow more low wage jobs, until something “cracks”.
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