Why Australia Stands Out Above New Zealand: A Close Look at Living Costs and Regulatory Differences

As a dual Australian/New Zealand citizen, I have lived in both countries and have spent ten years in Australia before moving back to New Zealand. While both countries are expensive to live in, with similar cost of living and wages, there are significant differences that make one more appealing than the other.

Cost Comparison: Similar but Not Equal

The cost of living in Australia and New Zealand is comparable. The slight edge in favor of Australia lies in the differences in specific cost categories. Food, for instance, is slightly cheaper in Australia. However, this advantage is offset by higher costs in other areas. Car registration, as an example, costs approximately NZ$200 (AU$250) in New Zealand, while it’s closer to NZ$1000 (AU$1250) in Australia. Additional driving costs, such as tolls and parking, are about 5-10 times higher in Australia. Speeding fines also tend to be more substantial. These factors contribute to the overall higher living costs in Australia.

The Impact of Government Regulation

The most significant difference between Australia and New Zealand lies in the levels of government regulation. New Zealand has two levels: local and national. Australia, on the other hand, has five levels: local, two houses of state government, and two houses of federal government. This leads to a labyrinth of bureaucracy and overregulation throughout every aspect of life.

Lessons from New Zealand

New Zealand’s more hands-off regulatory approach allows for a lighter touch in governance. The country’s simpler hierarchy allows for more agility in decision-making, leading to more streamlined processes. However, this does not necessarily mean New Zealand is superior; it simply means that more regulation is required in Australia to compensate for the additional layers of government.

Australian Levels of Overregulation

In Australia, regulations are pervasive in almost every aspect of life. This can be seen in how the country responds to events. For example, following the death of an American volleyball coach during the Beijing Olympics, the Australian team instituted rules about athletes wearing uniforms outside. Other countries did not make such sweeping changes. Similarly, after an Australian soldier drowned while swimming in Bougainville, the Army implemented a rule mandating all soldiers swim with flotation devices. In Melbourne, following a pedestrian fatality on Lygon Street, the city council reduced the speed limit to 40kmph, a change that is unlikely to prevent similar incidents but exemplifies the level of overregulation in Australian society.

Australia: The World's Most Overregulated Country

Australia is often referred to as the world’s most overregulated “civilized” country. While this level of regulation might be appealing to some who thrive on structure and rules, it doesn’t necessarily equate to superiority. The extensive regulations can create a cumbersome and bureaucratic environment, leading to inefficiencies in government and society as a whole.

Additional Considerations

Another factor to consider is the climate. Australia is generally colder in the winter compared to New Zealand, which can be a significant consideration depending on personal preferences. New Zealand is also known for being a global leader in political correctness, often placing this ahead of practical progress in the delivery of services, such as healthcare.

Popular Sports and Events

Two things that particularly stand out when comparing the two countries are rugby and America’s Cup racing. While there are other differences, these two sports are emblematic of the unique sporting cultures each nation holds dear. Rugby, in particular, is a beloved and defining sport in New Zealand, while the America's Cup sailing events captivate the hearts of many in Australia.

Overall, both countries offer distinct advantages, and the choice between the two can largely come down to personal preferences and priorities. While Australia’s level of overregulation might be its most notable difference, it is not necessarily a negative, as different levels of governance can lead to unique social and cultural experiences.