Andrew Dickens Afternoons

Andrew Dickens: We need to pay people more

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Synopsis

It didn't take long, did it, for the headlines to change. One moment the Prime Ministers of both New Zealand and Australia were trumpeting a new deal for Kiwis living in Oz. Nek minnit. New Zealand is petrified about a brain drain. The new deal means a faster and cheaper path to residency more in line with the pat for Aussies here in New Zealand. And that means a faster line to the dole, and pensions and healthcare for Kiwis in Australia. That makes it more attractive if you're wanting to plant some roots in a place. But the real kicker that makes Australia so attractive for New Zealanders is the pay. You get paid more there. You pay more tax principally because there are 3 tax levels. Rates, State taxes, and federal taxes. But you get paid more and stuff is cheaper there. So on balance it's more attractive. So my real question is why do you get paid more in OZ? Many say that the population is bigger which means more demand and there's a mineral wealth that flows into the economy. And while that is true it ma