Australia limits NZ immigration

New arrivals will not enjoy benefits

By Greg Ward in Auckland

The Australian Prime Minister, John Howard, has arrived in Auckland to unveil a new welfare package aimed at discouraging New Zealanders from emigrating to Australia.

After weekend talks with the New Zealand Prime Minister, Helen Clark, the two leaders will be announcing measures which will radically alter New Zealanders' immigration status in Australia.

Up until now New Zealanders have enjoyed an automatic right to Australian residency and benefits after living there just two years.

Australian PM will deprive New Zealanders of right to vote

But from Monday they will find themselves barred from welfare entitlements unless they apply for residency.

Like all other migrants, New Zealanders will now be judged on age and occupation criteria.

Those who fail to gain residency can continue living and working in Australia but without unemployment benefits or voting rights.

The new move will not affect the 400,000 New Zealanders already living in Australia, but it will make it much more difficult for others planning the move.

Impact

It is estimated only half the 32,000 who left last year would qualify under Australia's skills and qualifications criteria.

The two prime ministers will present the agreement at a joint news conference on Monday.

The Australian Government believes the move could save $500 m in welfare payments over the next 10 years.

Commentators in New Zealand have expressed concern about the recent erosion of New Zealanders' long-standing privileges in Australia.

But some say New Zealand may save money as well. This country is already battling a so-called brain drain and Australia is the number one destination for people of all ages searching for work and better pay.