Job Stalking

I found out that my previous employer was advertising for my old position. This immediately prompted a bit of job-stalking.

The problem with job-stalking is that it inevitably leads to job-browsing.

I soon found out that while I’m on a five-figure salary here, I’d be on an easy six-figure salary in Australia, doing the same work.

Of course this doesn’t take into account tax and exchange rates.

So without divulging my salary, let’s look at a typical example.

In Auckland $NZD 80K is a reasonable salary for an experienced software developer, so let’s assume that’s my salary (it’s not).

In Sydney/Melbourne I could expect somewhere around $AUD 110K, probably more.

Now, let’s look at the tax rates for both New Zealand and Australia.

Australian Income Tax Rates

Taxable income Tax on this income Effective Tax Rate
$0 – $6,000 Nil 0%
$6,001 – $30,000 15c for each $1 over $6,000 0% – 12%
$30,001 – $75,000 $3,600 plus 30c for each $1 over $30,000 12% – 22.8%
$75,001 – $150,000 $17,100 plus 40c for each $1 over $75,000 22.8% – 31.4%
Over $150,000 $47,100 plus 45c for each $1 over $150,000 31.4% – 45

New Zealand Income Tax Rates

Taxable income Tax on this income Effective Tax Rate
$0 – $38,000 19.5c for each $1 19.5%
$38,001 – $60,000 $7,410 plus 33c for each $1 over $38,000 33%
Over $60,000 $14,670 plus 39c for each $1 over $60,000 39%

It is also worth nothing that GST in New Zealand is 12.5% and in Australia is 10%.

Thus, a software developer in New Zealand on 80K, would pay approximately 22.5K in income tax, leaving them with $NZD 57.5K.

The same software developer in Australia on 110K would pay approximately 31K in income tax, leaving them with $AUD 79K.

Assuming the current exchange rate, then $AUD 79K equates to $NZD 90K.

So by paying just $300 for a one-way airfare to Melbourne I’d be over $NZD 30K better off per year after tax.

And people wonder why there’s a brain drain.

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One Response to Job Stalking

  1. Simon says:

    “In Auckland $NZD 80K is a reasonable salary for an experienced software developer, so let’s assume that’s my salary (it’s not).”

    Crap, it’s not mine either :(

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