Kiwi migrants 'struggle with finances'

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Created on Monday, 09 July 2012 13:54

Written by Editorial staff

Latest Census data revealed that more Kiwis than ever are now relocating to Australia in search of a better life - but for many of them it seems their dreams are not being realised.

Figures from the Australian Bureau of Statistics show that 9.1 per cent of people in Australia born overseas are from New Zealand, ranking second to only the United Kingdom.

Many Kiwis cross the Tasman in search of better paid jobs and an improved standard of living, but Jacques Poot, professor of population economics at Waikato University believes this is not necessarily what they find.

Speaking to NZ Newswire, he indicated that because of the strength of the Australian dollar, Kiwis convert what they can earn in their homeland and are under the illusion they will be better off on these shores.

"If they use that current exchange rate as a measure for whether they're going to gain, they are probably going to be disappointed because particularly right now they will under-estimate the cost of living in Australia," he commented.

Migration agents in Australia could see an increase in the number of people who want assistance returning to New Zealand - a trend that the New Zealand High Commission in Canberra and the New Zealand Consulate-Generals in Sydney and Melbourne have already seen.

A spokesman from the High Commission confirmed that this rise in relocation requests is already underway.

In the majority of cases, New Zealanders are issued with a non-protected special category visa, which gives them the chance to live and work in Australia for as long as they wish.

A downside to this, however, is that they have restricted access to health, disability and social and education support, therefore putting further strain on their finances.

Furthermore, Kiwis may find they are not entitled to sickness and unemployment benefits.

Stephen Toplis, Bank New Zealand's head of research, said that in some cases, it could take between five and ten years to pay back the cost of moving to Australia.

"You're going to swap your million dollar house in Auckland and have to buy a three million dollar house in Sydney to be equally as well off, and then the cost of your kids' education over there and all the rest," he explained.

With more Kiwis now living in Australia than in Wellington or Christchurch, this could be a problem that continues for some time to come.