The Kākā by Bernard Hickey
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The Australians are coming (for our workers)
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The Australians are coming (for our workers)

Australia moves to clear way for rapid full citizenship for New Zealanders living in Australia, which will increase pressure for young skilled workers to leave for Australia and stay there longer
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TLDR: Just quietly, the Australian Government took a major step forward on Friday night towards granting unfettered and full access to its welfare system for currently ‘second class citizen’ New Zealanders wanting to stay in Australia, and young skilled New Zealanders thinking of moving permanently across the ditch.

The risk of a big new exodus of frustrated young renters to Australia begs the question about whether obtaining better citizenship rights for expats was actually an own goal from an economic point of view. Photo: Lynn Grieveson / The Kākā

Australia’s Immigration Department announced the temporary closure of applications for a currently difficult-to-access and over-loaded pathway to residency, saying it was considering a much fuller and faster opening. It also created a taskforce to clear the current backlog of applications quickly, which will help Australia find up to 195,000 new permanent migrants in the current financial year. Australia increased its planning range for permanent migrants from 160,000 earlier this year and said New Zealanders would have priority.

The move confirms Australia remains on track to announce the major easing of rules about New Zealand’s 600,000 ‘second-class’ citizens living in Australia ahead of the next Anzac day. New Labor PM Anthony Albanese agreed at a summit in July with PM Jacinda Ardern to work on speeding up full residency, in part because of growing worker shortages there. Since 2001, Australia has made it difficult for New Zealanders who arrived after then to access disability insurance and other health and education benefits available to Australian citizens, even though they pay the same tax rates.

I include more detail and analysis below the paywall fold of the changes over the weekend and the extra pressure it puts on employers here to keep young skilled staff stuck renting here who are tempted by wages that are 30-40% higher and by the ability to save much more for housing deposits after rent costs over there.

Elsewhere in the news in our political economy over the weekend and this morning:

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The Kākā by Bernard Hickey
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The latest daily snapshot of the news, detail, insight and analysis on geo-politics, the global economy, business, markets and the local political economy for citizens and decision-makers of Aotearoa-NZ.