I worked for Australia's Department of Social Security and I can assure you that many people who had been unable to immigrate to Australia were accepted by New Zealand and later turned up here with a New Zealand passport. Popular ploy with Africans in the 1990's. Australia was where they wanted to come in the first place but were considered unacceptable, if not undesirable. We also have large numbers of unskilled Polynesians here on NZ passports who have become a social problem. These people would have no chance of being accepted as immigrants. It appeared to us at DSS that NZ would accept virtually anybody as an immigrant, all the world's scumbags and undesirables. Commonly, Kiwis were regarded by many DSS staff as parasites.
Reciprocity of welfare payments applies to pensions, not unemployment payments, for the simple reason that NZ is unable to afford to repay Australia the unemployments paid to NZ citizens in Australia, there are too many of them, and the repayments would break New Zealand. Further, unemployment payment recipients are subject to degrees of control and review and the Australian government was not satisfied with the New Zealand system, that the recipients would not be supervised to the extent of the Australian system, perusal of fortnightly applications (a legal declaration of their activities), attendance at their Job Service Provider, regular reviews, field officer visits, and so on .
The NZ pensioner who come to Australia and applies for a pension here under reciprocity has to meet the Australian criteria for grant of pension. Quite a few NZ disability pensioners havce got a shock when they applied here and were told "Sorry, but you do meet the criteria for grant of disability pension, you are not disabled by our standards. After two years you may apply for unemployment payments if you are willing to seek and accept suitable work".



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