Norfolk Island Economics
Norfolk Island has strong links with the Australian mainland for the provision of goods and services including transport, health and education.
Tourism forms the basis of the Island's economy and is heavily dependent on the economic situation on the Australian mainland and in New Zealand. Approximately 30,000 tourists visit the Territory each year of whom over 80% are from the Australian mainland.
The failures of Flight West and Ansett in 2001 had a significant adverse impact on the local economy as well as posing some freight problems. They highlighted the vulnerability of the local economy to the influence of factors beyond Norfolk Island's control.
Norfolk Air provides regular scheduled passenger services between Norfolk Island and the Australian mainland. Air New Zealand flies regularly between Auckland and Norfolk Island.
Pine and Kentia palm seeds and seedlings are the Island's main export along with mail order services provided by some retail outlets and philatelic (postage stamps postcards etc) sales.
Taxation
Federal income tax laws extend to Norfolk Island. However, income derived by residents from sources within the Territory is generally exempt from federal income tax. Other Federal Government taxes including the GST do not apply to the Island.
The Norfolk Island Government levies a range of local (mostly indirect) taxes and imposts some at a higher level than that imposed on the mainland by Federal, State and other Territory Governments.
Notwithstanding the decision that it should be largely financially self-sufficient, Norfolk Island does receive assistance and funding from the Federal Government.
You can view further information on Federal Assistance provided to Norfolk Island community and the level of assistance.