Norfolk Island is an external territory of Australia. Following the Norfolk Island Legislation Amendment Act 2015 and related 2016 reforms integrating Norfolk Island more closely into the Australian federal system, Australian Commonwealth income tax law was extended to Norfolk Island residents from 1 July 2016 - ending Norfolk Island's previous decades-long status as a separate, notably lower-taxed jurisdiction from mainland Australia. Per the Australian Taxation Office, indirect taxes (GST, luxury car tax, wine equalisation tax, and customs/excise duties) were specifically excluded from this extension and do not apply to Norfolk Island (see VAT/GST Rate below); the superannuation guarantee is being phased in gradually, reaching the standard 12% rate on 1 July 2027; and capital gains tax applies only to gains accruing after 1 July 2016 on assets not already subject to Australian income tax, with a permanent grandfather exemption for assets held before 24 October 2015.
Norfolk Island follows the Australian financial year (1 July to 30 June), consistent with its integration into the Australian federal tax system (see Tax System above).
Following the 2016 integration (see Tax System above), standard Australian federal corporate tax rates apply to Norfolk Island companies on the same basis as mainland Australia.
Following the 2016 integration, standard Australian federal personal income tax rates and brackets apply to Norfolk Island residents. A grandfathered capital gains tax exemption applies to assets held before 24 October 2015, and the superannuation guarantee rate continues phasing in gradually until it reaches the standard 12% on 1 July 2027 (see Tax System above).
Norfolk Island's own local GST ceased on 1 July 2016 as part of the federal integration, but Australia's federal GST was specifically NOT extended to Norfolk Island: per the Australian Taxation Office, GST, luxury car tax, wine equalisation tax, and fuel tax credits do not apply to transactions on Norfolk Island, unlike most other federal taxes that were extended. Norfolk Island businesses should not charge GST, advertise GST-inclusive prices, or issue GST invoices for transactions there.
Norfolk Island follows standard Australian residency tests following its 2016 integration into the federal tax system.
A non-resident entity has a Norfolk Island permanent establishment on the same basis as elsewhere in Australia, following the OECD Model Treaty definition as applied under Australian domestic law and any applicable Australian tax treaty.
Australia's own CFC regime applies to Norfolk Island residents following the 2016 federal tax integration.
Australia's own thin capitalization rules (see Australia's page) apply to Norfolk Island following the 2016 integration.
Australia's own anti-hybrid rules (see Australia's page) apply to Norfolk Island following the 2016 integration.
No foreign bank account or foreign financial asset reporting regime exists in Norfolk Island beyond Australia's own standard system (see Australia's page).
Australia's own participation exemption treatment for foreign dividends (see Australia's page) applies to Norfolk Island companies following the 2016 integration.
Australia's own foreign tax credit regime (see Australia's page) applies to Norfolk Island residents and companies following the 2016 integration.
Norfolk Island benefits from Australia's own double tax treaty network following its 2016 federal tax integration, since treaty-making is an Australian Commonwealth competency.