Over the last four decades, living standards in New Zealand have fallen far behind those in Australia. The gap is large. Measured in terms of real Gross Domestic Product (GDP), average Australian incomes are around 35 percent higher than those in New Zealand.
Australians are a third richer than New Zealanders. Per capita GDP (adjusted for purchasing power parity) is NZ$48,000 in Australia compared to just NZ$36,400 in New Zealand. This difference is remarkable given that the two countries enjoyed the same level of income for most of the twentieth century.
Australia is a highly developed country with a mixed economy. As of 2023, Australia was the 13th-largest national economy by nominal GDP (gross domestic product), the 19th-largest by PPP-adjusted GDP, and was the 20th-largest goods exporter and 24th-largest goods importer.
Wages are higher in Australia
Australia has a much larger population than New Zealand and a bigger job market. With so much competition, many businesses can offer higher salaries to Australian workers. New Zealand's medium hourly wage for women is $26.37, while in Australia, it is $37.02.
New Zealand is therefore currently ranked 49 of the major economies. If this is calculated per inhabitant, taking purchasing power parity into account, then New Zealand ranks 29th in the list of the richest countries. Inflation in New Zealand in 2022 was around 7.17%.
According to Swiss-based Research Institute, Credit Suisse, New Zealand is now the world's fifth richest country – with only Switzerland, Hong Kong, the US and Australia ranking higher.
Examples of first world countries include the United States, Canada, Australia, New Zealand, and Japan.
Life in New Zealand tends to move at a more relaxed pace. In 2019, New Zealand was ranked as the second safest country in the world. New Zealand has a lower crime rate than Australia. Plus, you won't have to worry about any snakes!
Australia's maximum 47 per cent rate is 8 percentage points higher than New Zealand (39 per cent), about 5 percentage points above the US (a figure which includes an estimated average state income tax) and 2 percentage points higher than the UK.
Both cities offer an excellent selection of harbour and surf beaches, but Auckland wins out for sheer variety. As lovely as Sydney's golden sands are, they can get a bit same-old-same-old after a while. Auckland by contrast has a beach to suit your every mood. Craving a lazy day at a postcard-perfect white-sand beach?
With 126,900 millionaires, Sydney made it to number 10 with the report noting especially strong growth in wealth in the Harbour City over the past 20 years, making it Australia's wealthiest city.
New South Wales: a diverse economy and high income
Among all the states and territories in Australia, New South Wales is considered the richest state. It has the largest economy, a diverse range of industries, and a higher-than-average income, which contribute to its status as the wealthiest state.
Australia is a signatory to the United Nations' Sustainable Development Goals. The first of these goals is “No poverty”. However, Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD – higher than the average for the OECD; higher than the UK, Germany and New Zealand.
Australia and Canada have similar levels of GDP per capita (based on purchasing power parity, nominal GDP per capita was around US$ 7 000 for Australia and US$ 9 000 for Canada in 008). Since 1990, Australia's growth in real GDP per capita has been a little higher than Canada's.
Australians are the third most wealthy citizens in the world, according to a new report – but there is a surprising way to be included among the richest.
New Zealand is less expensive than Australia; however, the margin isn't that big. Similar to Australia, some cities and towns are more expensive than others. Auckland, the biggest city, is the most costly. Statistics estimate that a single person needs $2,989 and a family $5,322 to live comfortably enough.
The main reason Australia ranks so highly on individual income tax levels is because Australians don't pay separate social security taxes. These account for an average 25.9% of total tax revenue, or close to 9% of GDP, across the OECD.
Telstra and retail giant Wesfarmers dropped out of the top 10 in the report released on Thursday, as BHP was revealed to be the single largest taxpayer. The company paid $7.3 billion in 2020-21, up from $4.6 billion the prior year. The company's BHP Iron Ore (Jimblebar) entity paid $2.4 billion.
As a New Zealander, will you have to pay higher taxes? Once you have your TFN you will pay the same tax rate as an Australian resident or citizen.
While Australians have a reputation of being friendly, New Zealand "does it even better", the report says. New Zealand was named one of the easiest places in the world to settle in, coming in fifth place, while Australia ranked 20th.
New Zealanders pay 25% more than Australians for the same food. Prices from Countdown and Woolworths online shopping in NZ dollars as at 7 April 2023. We can see that the vast majority of items are more expensive in New Zealand.
Graeme Richard Hart (born 1955) is a New Zealand billionaire businessman and the country's wealthiest person. He prefers to stay out of the media and makes few public appearances. As of March 2022, his net worth was estimated at US$9.7 billion.
New Zealand is one of the youngest countries on Earth, having first been discovered and settled by Polynesian explorers around 700 years ago. The early Polynesian settlers became the ancestors of the modern day Māori people, known in New Zealand as tangata whenua, or the 'people of the land'.
First World Definition
Following the Cold War, the use of the term “first world” changed. Today, a first-world country refers to industrialized and developed nations with higher literacy rates, life expectancies, and GDP per capita in comparison to other nations.