New Zealand and Australia are charting different courses -- on their way out of the Covid-19 pandemic

Australia's federal government has revealed a big spend-up in its budget overnight -- taking on more debt to create a quarter of a million jobs over the next two years.

Former Finance Minister Steven Joyce says next week's New Zealand budget is likely to take a similar approach.

But he says while our Government is ending oil drilling and introducing Fair Pay Agreements, Australia is avoiding major changes to its economy.

Joyce says New Zealand is trying to change the economy to a 'new normal', while Australia is trying to restore its 'old normal'.