Mood of the Boardroom: Is the grass really greener across the ditch for Kiwi workers?

With its promise of higher wages, lower prices and more opportunities to advance careers, Australia has long looked attractive to New Zealand workers looking to get ahead. Earlier this year Australia changed its immigration rules tilting the playing field even further in its favour.

Even before the rule changes the net loss of workers to Australia was at the highest level in a decade. Stats NZ data for 2022 shows there was a net migration loss of 13,400 people. A total of 33,863 people left New Zealand for Australia while 20,431 moved in the opposite direction.

Under the new rules New Zealanders in Australia have a fast route to the benefits of permanent residency. That gives them access to social security, the National Disability Insurance Scheme. It also means any children born in Australia to Kiwi parents now have an automatic right of citizenship.

The most recent figures from the Australian Bureau of Statistics are from May when the average weekly wage in Australia was A$1838 ($1985). Stats New Zealand’s average weekly wage in March was $1506. That’s almost a third higher.

to read more Mood of the Boardroom stories

In certain sectors where specialist skills are in demand worldwide, the pay gap is even more pronounced. Senior nurses who move across the Tasman are able to double their income while reducing their hours.

Australia’s rule changes are causing consternation right across New Zealand boardrooms.

In the words of professional director Craig Stobo, there is a giant sucking sound from Sydney.

We asked business leaders to rate their level of concern about losing critical skilled personnel to Australia and elsewhere overseas on a scale from one to five. Almost half (45.7 per cent) rate the problem at five, “very concerned”. Another 40 per cent rated the issue at four: “concerned”. Less than 1 per cent of respondents say they are not at all concerned.

Thomas Pippos, chair of Deloitte says: “We live in a world where talent and capital are highly mobile. We need to compete for it by recognising the importance of delivering market returns to both forms of capital.”

Thomas Pippos. Photo / Sylvie Whinray

The head of a large legal practice summed up the mood of other commenters neatly, saying: “This is an ongoing and constant concern and has been for years”. A communications business leader warns: “We need to be very aware of this. Senior talent will quickly move offshore if New Zealand doesn’t turn around.”

For an independent director the problem has wider implications. “The salary gap with Australia has become profoundly serious. We can’t lose our productive talent to Aussie and expect to be able to continue to support our growing number of vulnerable people in NZ in the same way.”

Jarden managing director Silvana Schenone voices another fear: “A real concern is that many young students are looking at moving to Australia for their university studies, resulting in a leak of talent at an earlier stage than before.”

Several respondents link the problem directly to election politics with one saying the exodus: “Will increase materially if Labour wins the election”, while a transport sector CEO says the flood will become a tidal wave if there is a Labour, Greens, Māori Party coalition.

Across the ditch

· Stats NZ data for 2022 shows there was a net migration loss of 13,400 people.

· A total of 33,863 people left New Zealand for Australia while 20,431 moved in the opposite direction.

The pay gap

· The most recent figures from the Australian Bureau of Statistics are from May when the average weekly wage in Australia was A$1838 or NZ$1985

· Stats New Zealand’s average weekly wage in March was NZ$1506.

Cause for concern?

· We asked business leaders to rate their level of concern about losing critical skilled personnel overseas on a scale from one to five. Almost half, 45.7% rate the problem at five, “very concerned”.

· 40% per cent rated the issue four, “concerned”.

· <1% per cent of respondents are not at all concerned.