Summary
The Centre for International Economics has modelled the impact of the following reforms on the Norfolk Island economy:
■ Core Reform — at the core of the proposed reforms is inclusion of Norfolk Island in the mainland’s welfare and Medicare systems. This would also necessitate participation in the mainland income taxation system
■ Other tax related reforms — imposition of mainland Superannuation, Goods and Services Tax, import duty (tariffs) and Fuel Excise, plus a simulation where Norfolk Island’s GST, import duty and Fuel Excise are all removed (without extending comparable mainland taxes)
■ Other reforms — include applying the Australian minimum wage in Norfolk Island; and GBE reforms such as improved governance arrangements and the establishment of an independent pricing regulator for monopoly services (or the opening of sectors to competition)
