Thousands of New Zealanders are leaving for greener pastures across the Tasman every year ignorant of the many myths and misconceptions about Australia’s economic fortunes and living standards.

One such myth is that household wealth in Australia has continued to rise over the past five years. This is not true. According to Reserve Bank of Australia Governor Glenn Stevens, household asset values, a prime indicator of wealth, have stood still for five years, partly driven by sluggish house prices.

However, the picture is more complex than that: Household incomes have increased, but according to the Melbourne Institute’s HILDA report released this week, almost all of that increase came in the form of cash hand-outs and transfers from the Australian federal government to homeowners, particularly to families and single-parent households with children. Stimulus payments during the global financial crisis also contributed significantly.

Saying that Australian standards of living have continued to rise is like saying New Zealanders are better off because the government increased Working for Families payments. It does not amount to a real increase in living standards, although it is real enough for those at the receiving end.

In Australia’s case, it is unclear how long this sort of entitlement largesse can continue. The China-fuelled resources boom has made these West-East transfers affordable, but if China were to slow down (and as the historically high terms of trade reduce), the future of such transfers is in doubt.

Also pertinent is Governor Stevens highlighting that much of the non-mining growth is taking place in healthcare and social assistance – both sectors are largely funded by government.

In short: What the government giveth the government can taketh away – and probably will in the event of a downturn.

The Australian government has been using the mining boom to artificially prop up Australian living standards for the past decade, but fostering such a culture of entitlement will soon become unsustainable.

Kiwis flying to Australia should look closely before booking their flight.