Well, unless it has no ratcheting clause to have that rise in line with inflation etc. It won't take all that long before that starts to impact people who see themselves as being quite middle-class* - particularly white collar workers in Auckland / Wellington where housing costs are very high.

*Note i'm well aware that their version of middle class doesn't align with historic NZ perceptions. But also the amount of high-end inherited wealth and the growing disparity between the top 10% and the rest means its also not entirely unrealistic to put a single income family with one earner at $180k as "middle-class" in Auckland.

[–] [email protected] 0 points 1 month ago (1 children)

its also not entirely unrealistic to put a single income family with one earner at $180k as “middle-class” in Auckland.

That family couldn't afford to buy a median priced house in Auckland.

That people keep harping on about "six figure salaries" is stupid. I am reasonably sure that phrase dates from the 50's, and somehow people just don't want to understand inflation.

[–] [email protected] 0 points 1 month ago

Indeed, which is another illustration of the problem with the modern economy - a combined income of $200k plus would be needed and that's likely only achieved with both partners in a relationship working near full time as well.