Aust. Prices Higher

Press, Volume CIX, Issue 32018, 19 June 1969, Page 14

Aust. Prices Higher

(N.Z. Press Association) WELLINGTON, . June 17. Australian retail prices are now about . 26 per cent higher than New Zealand prices, according to the A.N.Z; Bank arid Business and Economic Research, Ltd, Wellington. The two firms are collaborating on a study of the cost of living, tax rates, and State benefits on both sides of the Tasman. An interim report on their work appears in the June issue of “Business Forecasts,” published by Business and Economic Research, Ltd. “The comparison of retail prices in the two countries in 1964—written by A. J. L. Catt and H. R. Hardie and published by Business and Economic Research, Ltd—showed Sydney prices in early 1964 to be 31 per cent higher

than Wellington prices,” says “Business Forecasts.” "In the last five years Sydney prices have risen 17 per cent and Wellington prices 22 per cent. Prices in Sydney IP the first qtiarfer of 1969 were therefore some 26 per Sent higher than those in Wellington. “Since 1964 both the Australian and the New Zealand consumer price indexes have been revised, and the above calculation must be treated with caution until the commodities and services in the revised regimens for both countries are priced. This work is proceeding on both sides of the Tasman, the A.N.Z. Bank being responsible for the collection of Australian prices and Business and Economic Research for the New Zealand prices. Results to date suggest that the difference in prices revealed by this survey will be close to 26 per cent. “Tax rates, as the CattHardie study pointed out,

should also be compared in any exercise of this kind. Tax rates are lower in Australia, thus helping to offset the higher retail prices—particu-larly-for those in the higher income brackets. “A married man with two children on a salary of $5OOO would be left with $3910 after tax in New Zealand, and $4llO in Australia. To buy the same range of goods in Australia as $3910 will buy in New Zealand would require $4927 after tax, or $6340 be fore tax. “Even this figure understates the Australian salary equivalent to the New Zealand $5OOO before tax, for New Zealand’s social security benefits save the New Zealand salaried man considerable expense.”

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