With the cost of living squeezing Kiwis, more are eyeing Australia’s promise of higher pay, lower living costs (in some areas), and better retirement benefits.
But is moving to Australia really worth it for your wallet?
It’s a debate ‘Where's My Money’ podcast wants to be settled, so they gathered expert Financial Advisor Justin Gauci and the team from the ‘Cheques and Balances’ podcast to help you decide whether you should make the leap across the ditch or stay put.
Note: This isn’t to be taken in replacement of professional financial advice.
Are higher earnings in Australia worth moving for?
One of the biggest reasons Kiwis consider moving to Australia is the promise of higher pay - must be nice!
Justin Gauci says: “On average, it's about $1000 a month more in Australia... for a household of two adults, you've got another $2000 in your hand.”
And that in itself seems EXTREMELY tempting.
From teachers to tradies, plenty of careers pay more across the ditch, and the difference can feel life-changing, especially for families looking to make ends meet.
But, as ‘Where's My Money’ host Reagan White notes, it’s not just about the paycheck: “If you moved from New Zealand to Australia with some real discipline at least for a few years, you could get ahead pretty well”.
That discipline, however, is easier said than done.
The reality of ‘lifestyle creep’
With higher income comes the urge to splash out, AKA “lifestyle creep.” Justin describes it as, “the temptation... is the creep,” where you might blow that extra cash on luxuries just because you can.
The Aussie lifestyle, especially in cities like Sydney and Melbourne, offers endless ways to spend - so be warned: budgeting is key if you’re serious about saving.
While it’s true that “you can earn a lot more,” Gauci warns that Australians don’t always realise how good they have it because it’s just “normal to them”. The extra income can vanish as quickly as it arrives…
Housing and cost of living in Australia vs New Zealand
Higher salaries don’t always mean more disposable cash in your pocket, especially in cities like Sydney, where costs are steep. Justin says: “Sydney’s house prices are astronomical, even more expensive than Auckland.”
Even renting in Sydney can be as eye-watering as in Auckland, with comparable percentages of your income going toward housing.
But outside the big metros, like in Brisbane, there’s a much more affordable cost of living. In fact, rent for a three-bedroom home in Brisbane’s suburbs is actually cheaper than in Auckland.
Retirement and long-term benefits of moving to Australia
If you’re thinking long-term, Australia’s superannuation system offers significant advantages over New Zealand’s KiwiSaver.
Australia’s super is “12% on top of your salary,” explains James from the ‘Checks and Balances’ podcast. This means that even though you might have slightly less take-home pay in Australia due to higher super contributions, you’re far better prepared for retirement in the long run.
While this boosts retirement funds, keep in mind it’s locked away, unlike KiwiSaver, which can be used in the short-term for things, like a home deposit.
Is moving from New Zealand to Australia a good idea?
If you’re careful with spending and steer clear of that ‘lifestyle creep’, Australia’s higher salaries and better retirement options can offer a financial leg up.
But as James wisely says: “More money doesn’t necessarily mean you’re going to be saving that money”. Moving won’t magically make you a saver if that’s already a struggle.
For a deeper dive into more financial pros and cons of moving to Australia, make sure to check out the full episode of ‘Where's My Money’.
