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COVID-19 recovery

Kea press release for the results of the Welcome Home Survey

The data within this report was gathered via Kea’s ‘Welcome Home Survey’, launched in August to enable New Zealand to better understand its offshore Kiwis. Within this research, Kea sought to understand returning Kiwis timeframes, skills, industry experience and wealth, as well as their needs.

‘The survey was met with an “overwhelming response” and Kea chief executive officer, Toni Truslove says the resulting data reveals surprising insights about this group and their potential impact on New Zealand, both economically and socially.

“It is clear that the pandemic of 2020 is causing a once in a generation opportunity for New Zealand, as many of our one million-plus expats look to return home seeking safety, family and a new future,” Truslove said.

“Kiwis are coming home as they always have, but the new trend identified sees a high volume of Kiwis returning at the height of their careers, with many of the skills that New Zealand as a nation is in genuinely in need of. 

Truslove says the report indicated that the top industry for returners is technology. “And we also see a desire to return from teachers and healthcare workers, giving New Zealand a potential edge over countries with less distributed populations in this closed border era.

“And with a large majority planning to stay permanently, bringing family, pets and investment as well as a desire to give back to their communities, this group has the potential to be incredibly transformative for New Zealand, now and in the future,” Truslove said.

Highlights of the report include:

  • Over 15,000 people completed the survey, from regions including the UK, Australia, US and Canada.
  • 49% are planning to return, with half of those planning to arrive within the next two years.
  • The majority of those intending to return stated that Covid-19 was a key factor in their decision.
  • 75% of those intending to return plan to stay permanently.
  • 75% of respondents have been away for 5+ years, and are primarily aged between 35 and 54.
  • A large majority of respondents will potentially be looking for senior positions, stating their employment category as Senior, Manager, Director, Owner, or C-Suite.
  • 20% of respondents want to invest in a business and 11% intend to start their own business, with 8% intending to employ between 2-5 staff.
  • While 32% intend to reside in Auckland, the remainder are looking to return to regional New Zealand, with 22% leaning towards a region they haven’t lived in before.
  • Nearly a third are returning with a spouse, some bringing children and pets.
  • 65% of returning kiwis indicated they identify with progressive rather than traditional values.

The report’s analysis was supported by Distinguished Professor Sir Peter Gluckman, Economist Julie Fry and Distinguished Professor Paul Spoonley.

Sir Peter Gluckman said he believed that Covid-19 is having an undisputed impact on the volume and calibre of returnees.

“Clearly New Zealand’s response in contrast to global impacts has triggered many offshore Kiwis of vast experience and talent to think about returning to contribute to New Zealand. This includes a significant number in an age range and talent pool at the height of their game, that previously had been assumed to be unlikely to return,” he said.

Anna Curzon, Chief Product Officer for Xero agrees, saying that as senior and experienced Kiwis return home, it will be imperative that we make the most of this ‘brain gain’.

“Their experience overseas means they can bring new perspectives to the problems we need to solve. They will help reinvigorate the employment market both as potential employees and employers, and ultimately, give us the ability to continue to innovate and produce world-class products and services,” Curzon said.

On social aspects of the report, the respondents have primarily been away from New Zealand for a not-insignificant amount of time. And for some of the respondents, they will be arriving back to a very different New Zealand from when they left.

Distinguished Professor Paul Spoonley said we need to welcome these overseas Kiwis home.

“New Zealand has more of its skilled population overseas than any other OECD country. But they are coming home, bringing with them skills and experience that make them an extremely important addition to our economy and society.

“It is critical that if this is to happen, then employers and others need to embrace these new arrivals and use their skills and experience – and their willingness to give.”

 Toni Truslove agrees.

“This has never been more true and it seems that New Zealand’s pandemic response, contrasted with the ongoing challenges being faced by those offshore, has reminded Kiwis everywhere what an incomparable nation, environment and culture we have. New Zealand has a unique opportunity to make the most of this strong brand and to adequately plan on how we welcome these Kiwis home’

“To those remaining offshore, please stay in touch, and to those returning, we say, Nau Mai, Haere Mai, welcome home”.

Notes on the Research:

The survey and the analysis have been supported by:
Distinguished Professor Sir Peter Gluckman
Economist Julie Fry
Distinguished Professor Paul Spoonley
Survey analytics, strategy and design by TRA Research

For more information contact:

PR Representative: Paul Blomfield, 021 970 871, [email protected] 

Kea: Ele Quigan 027 773 7779 [email protected] 

About Kea

Kea is a Public/Private partnership, supported by NZTE, MFAT, MBIE and Tourism New Zealand

New Zealand has the second largest offshore community per capita in the OECD.  Kea was founded in 2001 to connect and engage our global people, for the benefit of Aotearoa.

Almost two decades on, Kea nurtures a vibrant and diverse community who share a strong passion for New Zealand and the success of its people and businesses.

Our mission to connect New Zealanders has never been more important. See keanewzealand.com

Filed Under: COVID-19 recovery, Kiwi coming home Tagged With: Coming Home, Economic Recovery, economy, Growth, opportunity, Welcome Home Survey

What were the motivations to create Chooice?

Chooice was originally the brainchild of entrepreneur and all ‘round good sort Sarah Colcord! Just like many Kiwi small business owners, Sarah lost all business at her event company Eventer when lockdown hit. So in an effort to promote Eventer for free, she created a Facebook group called New Zealand Made Products. It was literally an overnight success and climbed to over 10,000 members in its first week!

Sarah has since partnered with the team at Indigo: the good humans behind free business advice platform Manaaki. The group, now called Chooice (with two Os for more owesome), is New Zealand’s biggest Facebook group with over 540,000 members. And it’s backed by our new website Chooice.co.nz that’s already made a whopping $250,000 for small businesses!

What kinds of businesses sell their products through Chooice?

We have all sorts of awesome businesses on Chooice selling incredible products like Te Reo Māori clocks, caramel apples, woolen slippers, curry pastes and hot chutneys, tui paintings, beard oils, mud kitchens for kids, Letterman jackets, wood wick candles… Gifts for everyone you can think of!

We’re proud to support Kiwi businesses whether or not they make their products in New Zealand. Our goal is get money into Kiwis’ pockets so they can support their families and communities, and ultimately put that money back into our economy.

Do you think Covid-19 has accelerated Kiwis engaging in selling their own products?

Absolutely! Chooice really opened up the market for people who were already selling their own products. Some Kiwis who lost their jobs were forced to create a business out of necessity, and Chooice gave them a platform to take control of their lives again.

Lockdown also gave many Kiwis the time they needed to turn their passions into businesses and their side-hustles into full time work. And instead of having to sell through their own Facebook pages, websites, or at markets, they suddenly had access to 540,000 potential buyers who were keen to support Kiwi businesses. And all with literally zero spend on marketing or fees!

How is Chooice different from other buying and selling platforms?

Chooice is Kiwi owned and operated which we reckon is pretty special. We want to help Kiwi small businesses make as much money as possible, so we don’t charge any fees, except a 20% commission for businesses who choose to come on our Live broadcasts. 

We’re giving small business owners access to this huge audience from the biggest Facebook group in New Zealand! Plus, we’re an easy one-stop-shop for buyers who want to buy Kiwi, or are just looking for something handmade and that little bit extra special.

How can Kiwis living overseas get involved?

It’s easy-as! You can send orders to friends and whānau at home, plus heaps of our stores on Chooice.co.nz offer international shipping. If you can’t see an international shipping option on their store, contact them directly and fingers-crossed they’ll be able to suss something out for you. 

We also have the option to buy Chooice gift vouchers which are literally the easiest prezzie ever! 

Our store owners are always chuffed when they get orders from overseas. The rest of the world feels so far away right now so it’s awesome to feel that international love. And it’s a treat being able to give Kiwis who’ve flown the nest a little taste of home.

What does the future have in store for Chooice?

We’re pumped for the big shopping days coming up: Labour Day, Cyber Monday, Christmas… Our small business owners are already getting their stock levels ready. 

We’re also loving that more and more international buyers are coming to Chooice and we’re excited to see that grow. Kiwi businesses are world-class so we want to bring them to the world!

We’re just stoked that we can help buyers support Kiwi businesses. Chooice has been a lifeline for some New Zealanders, and literally kept roofs over heads and food on tables. We’re proud that they can use this platform to not just survive, but thrive, and we’re excited to watch it grow!


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Filed Under: Businesses growing at home, COVID-19 recovery Tagged With: Chooice, Covid-19, Small business, SME

PHOTO: GETTY IMAGES

When Robert Muldoon famously quipped to a journalist that New Zealanders who migrated to Australia “raised the IQ of both countries”, his response diminished the value of those who left and reflected the indignation of those who remained.

As a nation we’ve always had a love/hate relationship with those who’ve departed (even as most of us have, at one time or another, departed). For almost 30 years there was a feeling that some of our best and brightest were abandoning us and heading to greener pastures. Those departures felt like insults directed at those who’d stayed. Whether through envy or tall poppy syndrome, we perceived that the departees earned more overseas, had greater career opportunities, travelled more, had more exposure to culture and more fun than those New Zealanders who remained.

But clearly, whatever Muldoon may have said or implied, the estimated one million New Zealanders we lost offshore were hard-working and smart. Among them were likely many of the best and most talented minds we’d ever bred, educated and trained here during our recent history.

When Kea was established in 2001, it was out of recognition that these expats, sitting just across the ocean, could provide essential human capital and the diversity of perspective New Zealand needed to build a great economy – innovative business people, tech entrepreneurs, exceptional creative talent… we just had to reach out and ask them to stay connected to NZ, to help. We did ask, and many answered.

Almost 20 years on, in the time of Covid, as many of these overseas New Zealanders now seek to return home and the country’s brain drain has reversed, they’re now finding a very mixed welcome.

That is a missed opportunity for New Zealand.

Not only are we failing to arrange a soft landing for these New Zealanders we have long lamented the loss of, they’re facing an unclear process and sometimes hostile rhetoric from the media and public – increasingly convincing them to stay away.

New Zealand has a once-in-a-generation opportunity to reap the benefits of a multitude of candidates with offshore skills, experience and perspective in a world where borders remain closed to non-citizens.  With the second largest offshore population in the OECD, New Zealand has a competitive advantage in the skills race.

In managed isolation right now (or waiting for a flight) potentially is the kind of talent established New Zealand businesses are increasingly looking offshore to recruit. Essential skills holders such as nurses, vets and diesel mechanics along with entrepreneurs, investors and technology masterminds. With closed borders, the flow of talent to those businesses will slow and potentially stunt the growth of some of our economic mainstays.

In addition to established business, more than ever New Zealand needs innovation, start-ups and investment. Looking at the bigger picture, we need to consider which industries are going to sustain New Zealand in the longer term, and what minds are needed to develop them.

We are in the process of missing an enormous opportunity to embrace the skills and perspectives needed to complement and diversify the New Zealanders’ brains already here to drive our recovery in the Covid era.

This opportunity is New Zealand’s “brain gain”. It’s about time we started proactively welcoming these people both in our attitude and the planning/infrastructure we put in place to ensure they thrive.

Kea launched its global Welcome Home Survey in August and is seeking the help of New Zealanders to forward it to their compatriots offshore. Let’s encourage our overseas friends and family members to check in with NZ, and build an essential data set to enable New Zealand to better support them.

It’s time to change the narrative and to instead say to these returning New Zealanders, “nau mai, haere mai, welcome home”.

CONTRIBUTOR

Toni Truslove

CEO

Kea New Zealand

Kea member

COMING HOME?

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Join the Kea community, NZ’s online home for returning Kiwis.

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Resources

We’re here to support returning Kiwi. Here’s our list of resources to help you plan your return and next steps.

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Jobs

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Filed Under: COVID-19 recovery, Global Kiwi, Kiwi coming home Tagged With: Coming Home, Covid-19, offshore kiwis

The tourism industry has arguably been the hardest hit throughout Covid-19. Can you talk a bit about what it’s been like working throughout the pandemic?

The impact COVID-19 has had on the tourism sector has been devastating. Prior to the COVID-19 outbreak, domestic and international tourism generated $40.9 billion for the New Zealand economy, it was our biggest export earner, supporting many of our communities and employing one in eight people.

We’ve been focused on supporting the New Zealand tourism sector through insight gathering and sharing, business advice and marketing activity to appeal to domestic visitors in the short-term, and building brand preference and desire for New Zealand offshore so when we are able to reopen our borders, New Zealand remains top of mind.

What was the thinking behind the latest Tourism NZ domestic campaign – Do Something New NZ?

Prior to the Covid-19 outbreak, domestic tourism was worth $23.7 billion to the economy. Kiwi’s also spent around $9 billion a year on overseas holidays, so capturing a portion of this spend while our borders are closed will be important to support the sector’s recovery.

Do something new, New Zealand is about inspiring Kiwis to get out and try something new in their own backyard. The big challenge is getting Kiwis to think about travelling around New Zealand as a holiday. They don’t tend to see travel at home as a holiday and spend like they do when they go overseas. Our domestic activity is about changing this mindset and to showcase all the amazing things New Zealand has on offer.

Tourism NZ has teamed up with a number of government agencies in their latest international campaign. What is the message Tourism NZ is sending to the rest of the world?

We know from the Covid-19 experience that as a nation we are stronger as a collective. At the moment, the world is really seeking aspirational and uplifting content. This campaign aims to connect with our future visitors with heartfelt content that share messages to the world from Kiwis about what’s important to them, connecting global audiences to New Zealand’s values and identity.

While visitors can’t come to New Zealand at the moment, they can still experience New Zealand through our export products, food and beverage and support sectors like tech and investment, building New Zealand’s reputation offshore as a great place to live, study and visit again, when the time is right.

In what ways has the tourism industry banded together to support each other during this time?

The tourism industry has always been collaborative. But through Covid-19, this need for collaboration and connection has been even more important. You can see this in regional operators pivot to promote business to locals. Recently Qualmark, Tourism New Zealand’s quality assurance brand hosted a webinar with Sir John Kirwan to talk about developing resilience and coping through tough times for its members.

We are also working closely with the Regional Tourism Organisations on our campaign activity. While we promote at a national level they come in and play a really important part in promoting their regions at that specific regional level.

What examples have you seen here and globally of innovative tourism given borders are closed?

At Tourism New Zealand, we’re continuing to build relationships with our partners and connect with the world. We are undertaking a lot of engagement with our partners online to remain engaged and we have kicked off a project to see how we can give our trade and media partners the experience of New Zealand while our borders are closed.

We’ve also been experimenting with live streaming and this is having some really great results particularly in China. Recently we also held a live stream Matariki event through our social channels. Around 337,000 people from around the world watched this unique event.

New Zealand is known for its ingenuity, and the world-famous New Zealand company AJ Hackett are offering avatar bungy jumps live through a camera attached to the jumper. While you can’t beat experiencing New Zealand in person – or the thrill of doing a bungy jump yourself, these types of virtual experiences will form a part of how people experience New Zealand in the future.

What message would you like to send to Kiwis as they plan their next holiday?

Kiwis have been fantastic in supporting the tourism sector and the communities that they operate in. My message would be to do some research on sites like newzealand.com and find out what’s on offer. We sometimes can think we know a place pretty well, but I guarantee there is plenty of activities that many Kiwis aren’t even aware of.

What are your hopes for the future of tourism in New Zealand as we come out of this?

As we move through into recovery, tourism in New Zealand is likely to look very different to what it once was. This presents an opportunity to reshape the sector and ensure it enriches our country and people. Right now, Tourism New Zealand alongside other representatives is establishing a Tourism Futures Taskforce, a public-private taskforce that will lead the thinking on the future of tourism in New Zealand.

It will consist of cross-government and tourism sector representatives and will prioritise the current and future issues that will shape and impact tourism, and lead recommendations on further policy and regulatory reform in the sector.

My hope is that we rebuild a stronger more sustainable sector that can withstand future challenges like the ones we are now facing to create a thriving tourism industry.

CONTRIBUTOR

Stephen England-Hall

CEO

Tourism New Zealand

Kea member

Filed Under: Businesses growing at home, COVID-19 recovery Tagged With: Business, Covid-19, Stephen England-Hall, Tourism, Tourism New Zealand

With many returning to remote working under increased alert levels across New Zealand, working from home is becoming the new normal.

Technology advances allow individuals to virtually connect with colleagues, attend meetings and essentially operate in business as usual conditions from their home offices – be that their study, bedroom, beach house, kitchen table or beyond.

With remote working becoming so accessible and acceptable, the geographic constraints which usually operate in an employment relationship no longer apply. Increasingly, we are seeing individuals operating from a completely different country and time zone to their employers.

Since the closure of travel routes and national borders in March this year, over 40,000 New Zealanders have returned home. Some to shelter in New Zealand temporarily, others on a more permanent basis, drawn back by the comfort, familiarity and lifestyle that home offers.

Many are continuing their employment, working from New Zealand for employers in London, New York, Beijing, Sydney and other locations worldwide.

Potential tax issues to be aware of

For those taking refuge in New Zealand temporarily, COVID-19 concessions applied by Inland Revenue have enabled them to live and work here until such time as they are practically able to return to their home locations, without needing to worry about New Zealand tax.

Individuals are usually treated as tax resident in New Zealand if here for more than 183 days in a 12-month period (including time accumulated over multiple trips, such as holidays, within this window). Tax residence is backdated to the first day, rather than day 183.

The concession for individuals stranded in New Zealand due to COVID-19 travel restrictions ignores additional time spent in New Zealand, if that would otherwise tip them over the 183-day threshold. But it does require a person to leave New Zealand as soon as it is practically reasonable for them to do so.

Now that the borders are reopening, where it is practically reasonable for them to leave, individuals need to return to their usual home, or risk being subject to tax in New Zealand from the first day of their arrival.

Individuals choosing to remain in New Zealand create a tax risk not only for themselves, but also for their foreign employers.

Impact on foreign employers

In New Zealand, employment income is taxed in two ways; if you are tax resident, or if the income is sourced here because you are physically working in New Zealand.

New Zealand’s tax system does not have any territorial limitation. This means that a foreign employer will have an obligation to comply with New Zealand employment taxes, including registration and payment of PAYE to Inland Revenue, for any New Zealand based employees who are New Zealand tax resident, or if their income is sourced here.

Inland Revenue has recently issued a draft statement which potentially removes the obligation of foreign employers, that have no connection to New Zealand, to register as an employer and withhold PAYE on behalf of any New Zealand-based employees. Instead the New Zealand-based employees will be responsible for meeting any New Zealand tax obligations directly with Inland Revenue.

If confirmed, keeping in mind the position is in draft only at this stage (so care should be taken if relying on it), it will be a big change from the approach to date for non-resident employers.

It will also have significant implications for the New Zealand tax system, including the ability for Inland Revenue to collect the tax. Certain types of remuneration, such as fringe benefits, may be tax-free, if provided by a non-resident employer where they no longer have registration and payment obligations in New Zealand. This potentially creates an advantage for non-resident employers over New Zealand based employers.

Impact on employees

Being responsible for managing PAYE can create several complications, especially if individuals are still being paid through their foreign employer’s payroll, with employment taxes also deducted in the employer’s location. New Zealand based employees could find themselves double taxed until such time as they are able to claim a tax refund from the offshore tax authority. We are also seeing many foreign tax authorities taking the view that employment income is sourced in the employer’s country, even though double tax treaties and OECD guidance dictates that the country where the work is being physically performed has the primary taxing right. This will also create double taxation risk, if unable to be resolved.

Prior to March 2020 most cross border travel by employees was at the behest of their employers, who would also take the lead in ensuring that tax obligations as a result of cross-border working arrangements were being met. Where remote working is employee led, including due to COVID-19, individuals are often left to their own devices to resolve the complexities of determining how, when and where their employment taxes should be paid without the benefit of timely tax advice.

Being mindful of this and seeking specialist advice is recommended to ensure there are no tax fish hooks for either New Zealand-based employees, or their foreign employers, from new working arrangements arising due to COVID-19.

KPMG has prepared two helpful Tax Guides – Beyond Borders for Individuals, and Beyond Borders for Business Owners, which you can download for free.

If you would like to seek advice or to arrange your KPMG Kea Global Repatriation Package, our People Services team would love to hear from you. Please call Rebecca Armour on +64 9 363 5926 or email her at [email protected]

CONTRIBUTOR

Stephen England-Hall

CEO

Tourism New Zealand

Kea member

COMING HOME?

Join

Join the Kea community, NZ’s online home for returning Kiwis.

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Resources

We’re here to support returning Kiwi. Here’s our list of resources to help you plan your return and next steps.

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Jobs

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Filed Under: COVID-19 recovery, Kiwi coming home Tagged With: Coming Home, Employment, KPMG, Rebecca Armour, Tax

Simon Adlam (right) in state-managed isolation.

Invigorating is how I would describe my migration. I’m leaving a country called home for the land that is my home, Aotearoa New Zealand. Current life in Los Angeles is a contained life – rarely leaving home and longing to see family and friends during this COVID-19 pandemic.

On a summer evening, I departed from an empty LAX airport along with doctors, lawyers, bankers, families, and even actors, all en route to NZ. I couldn’t help but notice subtle smiles from the passengers, knowing we were leaving a debilitating global pandemic and were now Pacific bound to our homeland. We all settled into a long flight heading into a welcomed unknown – isolated management and quarantine. Having been sheltered in place in Los Angeles since March for almost four months, I was actually OK with it.

A 5 am touch-down came with a huge sigh of relief and a round of applause for the crew. Sadly, it was their last flight for our national airline. After we grabbed our belongings and deplaned, we were greeted with smiles and “Kia ora – welcome home!” and “It’s good to have you back!” That cold early morning we moved through a health check, immigration, then onto buses to a destination unknown. We had no idea where we were to be quarantined. Then we arrived at The Rydges Auckland.

The friendly smiles, warm welcomes, and caring conversations continued as we were left in the company of government agencies, armed forces, police, and our pleasant hotel staff. Our fellow New Zealanders passed by yelling, “Welcome Home!” to our travel-weary bodies. I’d returned to the values-driven society that has shaped who I am and I have carried those values with me to all the countries and cities I’ve lived and visited. I was proud to be a New Zealander.

The 14-day quarantine flew by and the health checks, testing, and precise management of our comings and goings came off without a hitch. I made new friends and even though we had just met, we could all sense how paramount our responsibility to safety was to each other as well as to all our fellow Kiwis. The memorable years of my youth washed over me upon my return to Aotearoa after 25 years of being abroad.

I humbly say, thank you, my friends, for welcoming me back with open arms. It feels good to be home again.

CONTRIBUTOR

Simon Adlam

Senior Executive Advisor

Museum & NGO Initiatives, Projects, and Programs

Kea member

COMING HOME?

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Looking for a new role in New Zealand? Visit the Kea job portal and find your next career opportunity.

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Filed Under: COVID-19 recovery, Kiwi coming home Tagged With: Coming Home, Managed Isolation, MIQ, Simon Adlam

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