Flow of Kiwis shifting to Australia hits 19-year high

Friday 19th September 2008

The number of New Zealanders migrating to Australia reached a 19-year high in the year to August, on the lure of higher wages and more jobs.

The net permanent and long-term outflow was 33,000 in the 12 months ended August 31, Statistics New Zealand said, the highest since the year ended February 1989.

The net migration flow to New Zealand's nearest neighbour is close to its peak of the past 30 years, with some 33,700 leaving in the January 1989 year and 33,400 in calendar 1979. The exodus has become a political issue in the run-up to the election, with the National Party hinting at tax cuts to keep Kiwis at home.

Net migration in August fell to an annualised 5,300 from 9,700, a level that's likely to small to make a meaningful contribution to New Zealand's economic growth, said Shamubeel Eaqub, economist at Goldman Sachs JBWere.

Tourist arrivals fell 0.5% in the latest month and were down 1.6% on the year.

By Jonathan Underhill

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