The Australian migration – why relocating may not leave you better off

February 25 2025

Australia is often perceived as providing financial gains for construction and infrastructure workers. However, new research commissioned by Waihanga Ara Rau, the Workforce Development Council for Construction and Infrastructure, may challenge this long-held belief and motivate employers and recruiters to set the record straight to aid employee retention and encourage the return of those living abroad.  

Is the grass really greener? carried out by Allen + Clarke and combining quantitative analysis and interviews with returning workers, offers a detailed comparison of key factors influencing relocation decisions, including income levels, housing affordability, and cost of living. It found shrinking income disparities, higher taxes, and soaring house prices are making Australia a less attractive destination for many Kiwi workers looking to relocate.  

We asked Waihanga Ara Rau about these surprising findings and how our industry could use them to its advantage. 

Why did participants leave New Zealand? 

There were two main reasons for their departure: 

  1. They wanted to work while travelling and exploring life outside New Zealand (typically the younger cohort) and/or; 
  2. They were chasing career challenges and/or a higher income in Australia (usually younger or mid-career cohort). 

When is Australia attractive? 

The research indicates that relocating to Australia to work is most appealing to those who do not have children, are relatively young and in the early stages of their careers, and who want to experience living in another country. These people are more likely to make the most of overtime and penalty rates that are more consistently available in Australia and are also likely to have more opportunities to progress to “intermediate” type roles in their trade given the larger scale of the sector in Australia.  

The research also suggests that assuming people haven’t been working long enough to save a deposit for a house, the relatively high rents in New Zealand compared to Australia may also incentivise people to relocate to and remain in Australia. 

Why did participants return to New Zealand after spending time in Australia? 

Australia may become less appealing to people as they start a family, progress their career, and accumulate wealth. And, for those who already have children, returning to New Zealand to be closer to family is attractive.  

Recent changes in the relative house price to income ratios of both countries has also made buying a house in New Zealand more affordable compared to Australian cities, and New Zealand households spend less on health and education as well. This suggests that household spending on goods and services in these categories is lower than in Australia, possibly increasing people’s disposable income. Plus, higher average income tax rates in Australia mean that as earning potential increases, people pay proportionately more tax in Australia than they would in New Zealand.  

Finally, experience gained working in Australia was seen as potentially increasing individuals’ labour market value in New Zealand, providing further incentive to return. 

How can New Zealand compete with employment entitlements in Australia’s construction and infrastructure sector? 

National Employment Standards, registered agreements, and industry awards govern Australia’s construction and infrastructure sector. Industry awards are legal documents outlining the employment conditions for employees within a particular industry or occupation and prescribe entitlements that arise when employees perform certain duties or work in certain conditions. For instance, the Building and Construction award prescribes a scale of hourly allowances that must be paid to employees working on multi-storey buildings, with the allowance increasing depending on the number of storeys. 

In New Zealand, there is no direct equivalent to the Australian industry award. Given the lack of control industry associations and employers largely have on economic conditions and associated constraints, the research recommends that industry associations work with employers to identify practical opportunities to mitigate or remove negative disparities and increase positive disparities between New Zealand and Australia. 

Mitigating negative disparities might include offering additional pay when employees are required to work overtime or on weekends or offering long-service leave based on the length of time an individual employee has been qualified. In New Zealand, overtime and penalty rates are agreed between employers and employees as part of individual or collective employment agreements rather than being prescribed. 

Increasing positive disparities might include structuring an employer’s labour force to enable greater work-life balance for the employees who value that, while providing opportunities for other workers to work additional hours to earn extra income. 

How should New Zealand employers and recruiters use the research findings? 

The research shows that some New Zealanders, when choosing to relocate to Australia, are making their decision based on inaccurate or incomplete information because recent changes in each country have reduced, removed, or reversed some key differences between them.  

This offers a valuable opportunity to equip New Zealand employers with up-to-date information about key factors so they can have informed conversations with employees considering moving to Australia and make decisions in their own businesses that could improve retention. 

Several of those involved in the case studies said they moved to Australia because of the tangible benefits relevant to their life stage that were highlighted by Australian employers who were advertising for employees in New Zealand, such as higher earning potential. Those considering relocating were provided with compelling reasons corresponding directly with what they valued.   

The effectiveness of this strategy provides an encouraging example that can be used by New Zealand employers, with the support of industry associations, to return workforce capacity and capability to New Zealand. 

This article was brought to you in paid partnership with Waihanga Ara Rau.