If it feels like you’re sliding backwards as the cost of living rises, you’re probably right.

Recent Stats NZ data shows that in the year to June, New Zealand salary and wage rates grew by just 2%, less than half the 4.1% increase in inflation. The trend has been happening since COVID, and it means incomes are effectively reducing.

In Australia the situation is more favourable, with the difference between wage growth and inflation much narrower, according to the Australian Bureau of Statistics: 3.2% wage growth in the year to June versus 3.8% inflation.

While Australian workers are also feeling the pinch, the pain isn’t as accute as it is in New Zealand.

One explanation for this might lie in Australia’s collective bargaining regulations that seem to offer advantages to workers and employers compared with their Kiwi counterparts.

Since 2022, Australian workplaces have had the benefit of rules that differ significantly from – and are more accessible than – the........

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