Verified Facts
As a territory of Australia, Norfolk Island follows the Australian tax system, with tax rates ranging from 0% to 45% for personal income, 30% for corporate tax, and 10% for goods and services tax (GST), also known as value-added tax (VAT).
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Norfolk Island, as a territory of Australia, operates under a territorial tax system, where residents are taxed on their income derived from sources within the territory, as well as on certain types of foreign income. The tax system is based on the Australian tax system, with some modifications to accommodate the unique circumstances of the island. Residency rules for tax purposes are based on the number of days spent on the island, with individuals who spend more than 183 days in a 12-month period considered tax residents.
The tax system in Norfolk Island is designed to be relatively straightforward, with a focus on simplicity and ease of compliance. The Australian Taxation Office (ATO) is responsible for administering the tax system on the island, and provides a range of resources and services to help taxpayers understand their obligations. Taxpayers can also seek advice from qualified tax professionals, who can provide guidance on specific tax matters and help ensure compliance with tax laws and regulations.
Personal Income Tax
| Income Bracket (AUD) | Tax Rate |
|---|---|
| 0 - 18,201 | 0% |
| 18,201 - 37,000 | 19% |
| 37,001 - 80,000 | 32.5% |
| 80,001 - 180,000 | 37% |
| 180,001 and over | 45% |
| Taxpayers on Norfolk Island are entitled to various deductions and allowances, including a tax-free threshold, as well as deductions for medicare levy, superannuation contributions, and other expenses. Tax returns must be filed annually, and taxpayers can choose to file electronically or by mail. It is also important to note that tax rates and thresholds are subject to change, so taxpayers should stay up to date with the latest information from the ATO. |
Corporate & Business Tax
- The corporate tax rate in Norfolk Island is 30%, which applies to companies that are tax residents on the island.
- Small businesses may be eligible for incentives, such as reduced tax rates or exemptions from certain taxes, under the Australian Government's small business tax concessions.
- There are no free trade zones or special economic zones on Norfolk Island, but businesses may be able to take advantage of other incentives, such as research and development tax concessions.
- Companies must register with the Australian Securities and Investments Commission (ASIC) and obtain an Australian Business Number (ABN) to operate on the island.
- Businesses must also comply with other regulatory requirements, such as workplace health and safety and environmental regulations.
VAT / Sales Tax
- The standard rate of goods and services tax (GST) in Norfolk Island is 10%, which applies to most goods and services.
- There are no reduced rates of GST, but some goods and services are exempt, such as basic food items, health services, and education services.
- Tourists may be eligible for a tourist refund scheme, which allows them to claim a refund of GST paid on certain goods and services.
- Businesses must register for a GST account if their annual turnover exceeds AUD 75,000.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers on Norfolk Island are based on the number of days spent on the island, with individuals who spend more than 183 days in a 12-month period considered tax residents.
- Double taxation treaties between Australia and other countries may apply to expats and foreign workers on Norfolk Island, which can help to reduce or eliminate double taxation.
- Expats and foreign workers may be eligible for social security benefits, such as Medicare and pharmaceutical benefits, under the Australian social security system.
- Remittance rules apply to expats and foreign workers who send money out of Australia, and may be subject to foreign exchange controls and tax withholding.
- Expats and foreign workers should also be aware of their superannuation obligations, which may include making contributions to an Australian superannuation fund.
- It is also important for expats and foreign workers to understand their tax obligations in their home country, as well as in Australia, to avoid double taxation and ensure compliance with tax laws and regulations.
Crypto & Investment Income
- Investment income, such as dividends, interest, and rental income, is subject to income tax in Norfolk Island.
- Capital gains tax is included in the income tax system, and applies to gains made on the disposal of capital assets, such as real estate and shares.
- Cryptocurrency is considered a capital asset for tax purposes, and gains made on the disposal of cryptocurrency are subject to capital gains tax.
- Taxpayers must report their investment income and capital gains on their tax return, and may be eligible for tax deductions and concessions on their investment expenses.