The government policies of Norfolk Island have had a significant impact on the island’s economy. One of the most notable policies is the Norfolk Islanders’ desire for self-governance, which means they do not pay any federal taxes, including goods and services (GST), income, or company tax. This has led to a reliance on tourism as the primary source of revenue, which has placed the island’s economy in a precarious position, especially given the current downturn in the number of tourists travelling to Norfolk.
The Norfolk Island Government plays a major role in the island’s economy, providing essential and other services. However, the lack of adequate measures of gross product and inflation on the island has made it difficult to estimate the size of the economy. The island’s economic downturn has been relatively severe and can be described as an economic depression.
From 1 July 2016, mainland taxation, social security, immigration, biosecurity, customs, and health arrangements, including Medicare and the Pharmaceutical Benefits Scheme, were implemented on Norfolk Island. This has had a significant impact on the island’s economy, as it has led to an increase in the cost of living for residents and businesses.
To address the economic challenges faced by Norfolk Island, the Norfolk Island Economic Development Strategy and Action Plan was developed. This plan aims to identify and demonstrate opportunities for small business and retail on the island, improve infrastructure, and promote the island’s unique culture and natural environment. The plan includes initiatives to support the development of new businesses, improve infrastructure, and promote the island’s unique culture and natural environment.
Government policies have had a significant impact on the economy of Norfolk Island. The island’s self-governance and lack of federal taxes have led to a reliance on tourism as the primary source of revenue, which has placed the island’s economy in a precarious position. The implementation of mainland taxation, social security, immigration, biosecurity, customs, and health arrangements has led to an increase in the cost of living for residents and businesses. The Norfolk Island Economic Development Strategy and Action Plan aims to address these challenges and promote economic development on the island.
