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  • Norfolk Island residents and individual tax

    Paying tax, lodging a tax return, applying for a TFN, income sources and deductions as a Norfolk Island resident.

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    Paying tax

    We (the ATO) collect money on behalf of the government, this is known as paying tax. You may need to pay tax if you get income from:

    • employment
    • super pensions, annuities and government payments
    • investments (including interest, dividends, rent and capital gains tax)
    • a business, partnership or trust
    • foreign sources
    • crowdfunding.

    The amount of tax you pay depends on how much money you earn and if you have a tax file number (TFN).

    Your tax file number

    A TFN is your personal reference number in the tax and superannuation systems. Applying for a TFN is free.

    If you don’t have a TFN, you may be paying too much tax.

    How you apply for a TFN will depend on your circumstances. The fastest way to apply for a TFN is online.

    If you're on the island and unable to apply online, find out how to apply through the Office of the administrator.

    Your tax return

    When you're receiving income, you need to lodge a tax return each year at tax time. Most people need to lodge a tax return by 31 October.

    A family member or friend can help you with your tax return. They can't charge you a fee – only registered tax agents can charge for preparing tax returns. You must sign the tax return yourself as you are responsible for the information in it.

    In order to lodge a tax return, you need to have a tax file number (TFN).

    Receiving income

    When you do your tax return, you must include all of the income you received during the financial year. This may include income from:

    • employment
    • investments
    • government payments and grants
    • other sources.

    Amounts you don’t include in your tax return

    There are some amounts don't need to be include as income in your tax return. Aboriginal and Torres Strait Islander people and Indigenous holding entities don't need to pay income tax or capital gains tax on native title payments or benefits.

    Claiming deductions

    When you do your tax return, you can claim deductions for some expenses. For example, you may be able to claim a deduction that directly relates to expenses you incur to do your job.

    You need to keep records (such as receipts) for your expenses. You can use the ATO app's myDeductions tool to keep track of your records all in one place.

    Offsets and rebates

    Most residents of Norfolk Island can claim the zone tax offset fixed amount of $1,173. This fixed amount can be increased if you care for a dependent child or student, you are a sole parent, or you are entitled to an invalid and invalid carer tax offset.

    The zone tax offset is a non-refundable tax offset, which can reduce your tax payable to zero, but on their own they can't get you a refund.

    Medicare levy

    If you are entitled to Medicare benefits you may have to pay the Medicare levy.

    The Norfolk Island exemption from paying the Medicare levy ceased on 1 July 2016.

    Last modified: 23 Nov 2022QC 47355