Norfolk Island enslaved since 1st July 2016

Bullion Baron as for companies using a tax haven, an unkown little island like Norfolk Island would be perfect for companies and high net worth investors wishing to fly under the radar rather than obvious places like Cayman Islands or Bermuda where everybody knows what you are up to automatically and where authorities are more likely to crack down on. Also for foreign investors who want a tax haven that uses the Australian Dollar as their currency they could have been the only one. So those who wanted a tax haven that gives them easy exposure to the AUD would have liked it. Additionally, the fact that it is only two hours flight from Sydney would have made it a convenient base for high net worth businessmen who are based in or do some business in Sydney if they wanted to live on Norfolk island (or at least part-time) like some wealthy foreginers live on Cayman Islands.
 
How much is a result of the Norfolk Island government selling out to maintain the Norfolk Island government?

From a 2012 report:
The Norfolk Island government fiscal position is poor; and to ensure basic government functions
continue, between 2004 and 2012 the Commonwealth has provided soft loans and direct transfers to the Norfolk Island government totalling $37.1M.

The most significant factors limiting investment and economic development on Norfolk Island are the dominant role of the government in the economy;
the associated protectionist legislation that supports this role; and the lack of infrastructure investment by the Norfolk Island government.

The main driver of economic growth on Norfolk Island is the tourism industry, and path dependence means that future economic development on
Norfolk Island should largely concentrate on the tourism sector.

Based on both Australian and international evidence there are a number of microeconomic reforms that can be implemented on Norfolk Island that will
promote economic growth in general, and support the development of a new tourism sub-market that services cruise ship passengers.

A reformed, growing, Norfolk Island economy, is, however, unlikely to provide a tax base of the size required to support the level of infrastructure
investment required on Norfolk Island, and also allow an appropriate level of service provision across health, education, and social welfare.

Over the longer term it will be necessary to implement arrangements between the Commonwealth and Norfolk Island governments so that Norfolk Island
has accesses to regular fiscal equalisation payments of some kind. The full integration of Norfolk Island into the Australian tax system, and the
subsequent provision of equalisation funding to Norfolk Island would be one way to achieve this. Reform of the Norfolk Island tax system, access to
Commonwealth infrastructure grant programs and health funding, along with ad hoc funding provided by the Commonwealth would be another approach
capable of delivering a similar outcome to full integration.
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In the immediate, it is not necessary to resolve the final status of the integration of Norfolk Island with the Australian tax and transfer payment system. Rather, it is necessary to implement a program of microeconomic reform based on the Competition Principles Agreement 1995.
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In the immediate term, the privatisation revenue from the sale of the Liquor bond, Norfolk Telecom, Lighterage, and Norfolk Energy will allow the Norfolk Island government to both directly, and in partnership with the Commonwealth, invest in essential infrastructure.

The extension of land taxation arrangement (rates) to all properties on Norfolk Island will improve the fiscal position of the Norfolk Island government over
the longer term so that it can maintain and continue to invest in essential infrastructure.
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Bordsilver you have to think about why the Norfolk Island government asked for assistance from the Australian government in the first place? Its because the Australian government would not let them build an offshore banking industry, and also because the Australian government expropriated the fishing and oil/mining royalties/economic rent generated in Norfolk waters (Norfolk exclusive economic zone), not to mention the annual taxes of approximately 5.6 million which Norfolk Island had to send to the Australian government. Also by mandate/legislation the Australian government would not let Norfolk island raise money in ways that other countries do like selling bonds or getting private sector or IMF loans. Basically the Australian government tied them in a straight jacket and forced them to come back and beg the Australian government for a bailout.
 
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