Superannuation, Payroll Tax, Workers Compensation. These additional on-costs can equate to 17% in Australia, while in New Zealand they equate to just 3.8% – with staff superannuation being optional, and a lack of payroll tax offering further savings. In real dollar terms, a 200-FTE operation can save over AUD$1.5mil by offshoring to New Zealand.
Office Space is cheaper in New Zealand, and it is not unusual for a company to enjoy a 50% or more reduction in their office space costs in New Zealand versus Australia. For a 200-FTE operation this could be approximately AUD$500,000 per annum.
Salaries in New Zealand cities come in lower than they are in Australian cities, leading to a significant reduction in workforce costs.