Norfolk Island reforms

The measure will extend the Australian tax system to Norfolk Island as part of a larger reform strategy that includes extending the Australian social security system, and Medicare arrangements to Norfolk Island.

From 1 July 2016:

  • Norfolk Island resident individuals, companies and trustees will be taxed on their Norfolk Island sourced income and their foreign sourced income.
  • Norfolk Island residents are liable to pay the Medicare levy,
  • Norfolk Island employers and employees will be brought into Australia’s superannuation guarantee system. However, the system will be progressively introduced to reduce the impact on Norfolk Island and employers.

The GST will not be introduced as Norfolk Island like Christmas Island and the Cocos (Keeling) Islands is an Australian external territory and is not part of Australia for GST purposes.

On 23 October 2015 changes to the Capital Gains Tax (CGT) for Norfolk Island residents were announced. CGT will only apply to assets acquired by Norfolk Island residents after 23 October 2015. However, this change will not apply to CGT assets held by Norfolk Island residents which would not have been exempt from CGT before Norfolk Island is incorporated into Australia's mainstream taxation system.

Media releases

  • The Assistant Minister for Infrastructure and Regional Development, the Hon Jamie Briggs MP, announced the reforms on 19 March 2015. media releaseExternal Link
  • The Minister for Territories, Local Government and Major Projects Paul Fletcher, announced the continued progression of the reforms and CGT changes for residents of Norfolk Island on 23 October 2015 media releaseExternal Link

Legislation and supporting material

Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Act 2015 received Royal assent on 26 May 2015

Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Act 2015External Link

    Last modified: 06 Nov 2015QC 46859