The long-held belief that Australia offers better financial opportunities for New Zealanders in the construction and infrastructure sectors may no longer hold true, according to new research. It finds shrinking income disparities, higher taxes, and soaring house prices are making Australia a less attractive destination for many Kiwi workers looking to relocate.

The Construction and Infrastructure Workforce Development Council, Waihanga Ara Rau, commissioned Allen + Clarke to conduct this research on their behalf. Is the grass really greener? combines quantitative analysis and interviews with returning workers to offer a detailed comparison of key factors influencing relocation decisions, including income levels, housing affordability, and costs of living.

Kiwi wages on par with Australia for Electricians, Telecoms workers
Among the findings, it shows electricians and telecoms workers in Victoria and New South Wales are no longer likely to earn significantly more than their counterparts in New Zealand, and may even take home less after-tax income. For construction workers and heavy machinery operators, it reveals that although earnings remain higher in Australia, they come at the cost of overtime and weekend hours.

Chief Executive Philip Aldridge says the research provides a valuable, up-to-date picture of the realities facing New Zealand workers considering a move across the Tasman.

“This research isn’t about claiming one country is better. It’s about giving workers and employers complete information. Relocating involves more than just a paycheck, with taxes, living costs, and work-life balance all playing a role. Both sides need to understand the trade-offs.” Aldridge says.

Housing more affordable in NZ than in Australian cities
The research also challenges the myth that Australia is more affordable for house buyers. As of 2023 and continuing into 2024, New Zealand’s house price-to-income ratio has dropped significantly, making homeownership more accessible compared to major Australian cities like Sydney and Melbourne.

Aldridge acknowledges that New Zealand’s construction and infrastructure sectors currently face a shortfall of work, with many workers moving to Australia for immediate opportunities. He says the findings show the importance of weighing both short- and long-term factors.

“There’s no denying New Zealand’s recession and current lack of work, but it’s temporary. Within 12 to 15 months, major projects will be kicking off, interest rates will drop further, and demand for skilled workers will surge. Australia may look appealing now, but short-term gains should be weighed against New Zealand’s long-term potential.”

New Zealand Certified Builders Chief Executive Malcolm Fleming says the findings highlight a key opportunity for employers to address retention issues.

“Too many workers are making decisions based on outdated or incomplete information about Australia. It’s time for employers in New Zealand to step up, offering workers a clear, compelling case to stay, built on real data.

“Kiwi workers may be chasing short-term gains, and that’s understandable. But they need to know the grass isn’t always greener in Australia,” Fleming says.

Workers prefer NZ to bring up families
The research finds that stage of life also plays a critical role in decisions to move to Australia, with the country remaining most appealing to younger Kiwis early in their careers, especially those without children or mortgages. Australia’s larger job market and opportunities for career progression, combined with overtime and penalty rates, continue to draw those seeking a “Tradie OE” experience.

In contrast, New Zealand becomes more attractive as workers progress through their careers, start families, and seek greater stability. With improving housing affordability and a better work-life balance, the report finds that New Zealand offers strong incentives for those looking to settle down long-term.

Chasing the sunshine, but returning for stability
Sophie Cleal, who moved from Tauranga to Brisbane earlier this year with her partner Ryan, a builder, says that while they initially expected Ryan’s salary to be higher, they faced concerns about whether he could even work in Australia due to different building standards and unrecognised qualifications.

“Before we moved, we didn’t know if Ryan’s qualifications would be recognised here or if he’d need to retrain. He still wouldn’t be able to reach the next step in his career, like site management roles, without doing additional training for an Australian license.”

Despite the challenges, Sophie says they are now in a better position overall.

“Ryan’s landed opportunities here that he wouldn’t have had back home, he found work really quickly, and he’s earning more than he would be in New Zealand.

“The rental housing is also much better than in Wellington, and the weather is a huge bonus. It’s perfect for us at this stage of our lives,” Sophie says.

Despite the higher wages and sunshine, the couple still plan to return to New Zealand to start a family once they’ve gained the overseas experience they want and saved more.

“We didn’t move to Australia with the intention of staying long-term. Once we’re ready to settle down, we’ll go back to New Zealand to start a family. It’s just such a great place to raise kids with a real sense of community,” Sophie says.

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Media contact:  Kelly Moran, Marketing & Communications Manager, Waihanga Ara Rau, 029 770 5277.