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Earnings differential with Australia

This chart measures the difference between the average weekly full-time earnings in New Zealand, as measured in the QES, table 7.01, and the equivalent data for Australia, release 6301.0 table 1.

The currency is converted at the RBNZ recorded exchange rates.

It is important to note that this comparison is "before tax" - (while New Zealand income taxes are relatively straight-forward to calculate, Australian income taxes are not, and depend on a wide range of personal qualifications).

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3 Comments

"Weekly Earnings as % of

"Weekly Earnings as % of Australia"... what kind of criteria is that?!?! I didn't know that weekly earnings measured against land mass was a meaningful economic indicator.

By this standard of measure, Singapore, Monaco, and Luxembourg are the world's three top economies.

International exchange rates

International exchange rates bear no relationship to the cost of living and a whole range of factors, including taxation, needs to be applied to provide a direct comparision. The wage cross section in Australa is also quite different to that applying in New Zealand, particularly the effect of the very high wage rates in the mining sector and very high salaries paid in the much larger (in size and scale) corporate sector. Quality of life also needs to be taken into account, especially the downside for most of those living in the overcrowded larger cities.

Graphs should start from 0 on

Graphs should start from 0 on the vertical axis. Otherwise they visually exaggerate the data. This is particularly a problem with financial statistics.