Author: Justin Gauci – enable.me coach and financial adviser
With more Kiwis than ever packing up and heading offshore, especially to Australia, it’s clear that the lure of a bigger paycheck and new opportunities can be hard to resist.
The stats say it all: over 52,500 New Zealanders left in the year ending March 2024, setting a record and inspiring many Kiwis to wonder if they were missing out by not making the jump overseas.
Is the Grass Really Greener?
There’s a lot to gain from an overseas move – if it’s about adventure or career growth, go for it!
Just remember, it’s not always the financial paradise it’s made out to be, and it’s worth asking – would you really be getting ahead, or just trading one set of challenges for another?
While a fresh start sounds exciting, no matter your decision, success starts with building solid financial habits.
If you’re fixated on the idea that Australia offers higher salaries and fresh experiences, this article will go beyond the headlines and dig into what a move overseas really means for your finances, lifestyle, and mindset.
More Money, Same Problems?
First, let’s look at the difference in salary. Australia’s average net pay per month is about NZ$6,253, compared to NZ$5,150.
It’s easy to glance at the income difference and think, “Yes, please!”
But take-home pay doesn’t tell the whole story. Many Australians face similar pressures – cost-of-living increases, soaring property prices, and paycheck-to-paycheck living.
Plus, big-city life in Sydney or Melbourne comes with social temptations and events that make it easy to overspend. That higher paycheck can start to feel smaller quickly, especially if you’re planning to transition from one major city to another.
For example, property prices might be high in New Zealand, but don’t assume Australia is a bargain.
Sydney is still one of the priciest cities, with Wellington and Auckland not far behind. Interestingly, Christchurch outperforms many Australian cities in affordability and quality-of-life metrics, while cities like Hamilton and Tauranga also provide competitive affordability across housing and everyday living costs.
Although national averages might look similar across both countries, they include rural and high-cost urban areas. Most people aren’t moving from Auckland to rural Queensland; they’re headed to big cities, where the high costs make “easy savings” elusive.
To get a more accurate picture of what your move might look like, we’ll compare the cost of living in both Auckland and Sydney.
Sydney vs. Auckland: Swapping Cities
Here’s a quick look at how costs stack up between Sydney and Auckland:
Sydney vs Auckland: Average Net Salary per month
| Comparison | Sydney | Auckland |
| Average monthly net salary | $6,700 | $6,157 |
The average monthly net (after tax) salary in Sydney is higher than Auckland, but how far would that extra money stretch in your new life?
Let’s take a look:
Sydney vs Auckland: Cost of Living Cost Comparison
| Comparison | Sydney | Auckland |
| 1-bed city apartment (rent) | $3,543 | $2,028 |
| 3-bed city apartment (rent) | $6,986 | $3,799 |
| City apartment (buy per square metre) | $24,735 | $13,101 |
| Basic Utilities (monthly) | $326.88 | $229.41 |
| Fuel Prices (per litre) | $2.20 | $2.93 |
| Domestic beer (0.5L) | $11.18 | $12.00 |
| Barista Coffee (Regular) | $5.46 | $5.67 |
| Milk 1 litre | $2.57 | $3.13 |
While Sydney might save you a few dollars on beer or coffee, the essentials – like housing and utilities – tend to be significantly more expensive. It’s the higher cost of big-ticket items that adds up quickly, making ‘more money’ feel less impactful.
There are hidden costs, too:
Childcare and Schooling: Surprisingly high costs, especially for families considering private schooling. In Sydney, you’ll need to pay higher fees for private schools, or higher rents to ensure you’re zoned for prestigious public schools.
Social and Travel Costs: Building a new social life often involves dining out and entertainment, while staying connected with family back home adds travel costs. Prices for dining out and alcohol are roughly similar, but you’ll find more options and greater temptations in Sydney that could make it harder to budget.
Lifestyle Adjustment: In big Aussie cities, the work culture isn’t always 9-to-5, and work-life balance can take a hit. For instance, data from OECD and Unions NSW claim 12.5% of Australians work more than 50 hours per week, and 86% of employees in NSW work unpaid overtime each week. Be prepared for a shift in your work-life balance expectations.
Both cities require strategic budgeting, particularly for families balancing childcare, schooling, and lifestyle preferences. Although Auckland’s general living costs are lower, Sydney’s higher wages provide an advantage that is often offset by its higher living expenses.
Ultimately, both cities offer a similar level of affordability, with unique trade-offs in lifestyle and costs that depend on personal priorities, life stage, and financial goals. Hidden costs can eat into your financial gains before you know it, so if a pay rise is your main goal, make sure to factor these into your plans – and, most importantly, start planning today.
Financial Security Starts at Home
Australia might offer more in terms of job opportunities and urban perks, but what you gain in salary, you might lose in lifestyle balance. New Zealand’s pace is generally more relaxed, community-driven, and friendly than the hustle of some Aussie cities.
But the biggest move you can make isn’t geographical – it’s financial.
56% of New Zealanders surveyed in a MediaWorks study agreed that they were living paycheck to paycheck, with 97% concerned about the cost of living. If finances are already tight, a move to Australia won’t magically solve things – it’s wishing for a financial solution instead of making a considered financial decision.
If you are set on packing your bags, consider your true motivation for moving and, if it’s purely financial, strengthen your foundation here first.
Building a financial buffer of at least three months’ living expenses (aim for six, if possible) can make any overseas opportunity feel less daunting. This security net is like training for the big game: without solid basics, you’re likely to struggle wherever you go, and certainly won’t perform at your peak.
A strong financial foundation also cultivates an abundance mindset, helping you make the most of what you have, whether in New Zealand or Australia – learning to save, tackle debt, and improve cash flow (before you move) might put your plans into perspective, or ultimately make the decision to move more rewarding in the long-term.
Lay the groundwork for financial fitness before you make the leap, so you’re not just jumping from one city to the next, and simply trading one set of problems for another.
And if you’re ready to get serious about building that foundation, now’s the time.
