Politics of Norfolk Island takes place in a framework of a parliamentary representative democratic entity. Norfolk Island is the only non-mainland Australian territory to have achieved self-governance. The Norfolk Island Act 1979, passed by the Parliament of Australia in 1979, is the Act under which the island is governed.
In a move that apparently surprised many islanders the Chief Minister of Norfolk Island David Buffett announced on 6 November 2010 that the island would voluntarily surrender its tax free status in return for a financial bailout from the federal government to cover significant debts.
It was announced on 19 March 2015 that self-governance for the island would be revoked by the Commonwealth and replaced by a local council with the state of New South Wales providing services to the island. A reason given was that the island had never gained self-sufficiency and was being heavily subsidised by the Commonwealth, by $12.5 million in 2015 alone. It meant residents would have to start paying Australian income tax, but they would also be covered by Australian welfare schemes such as Medicare.
The Norfolk Island Legislative of Assembly decided to hold a referendum on the proposal, to be held on 8 May 2015. Voters were asked if Norfolk Islanders should freely determine their political status, their economic, social and cultural development, and to "be consulted at referendum or plebiscite on the future model of governance for Norfolk Island before such changes are acted upon by the Australian parliament."
The outcome of the referendum echoed a resounding 'Yes' with 68% of the vote confirming that Norfolk Islanders should have the right to determine their political and cultural development freely and not have it imposed upon them. The Norfolk Island Chief Minister said that "the referendum results blow a hole in Canberra's assertion that the reforms introduced before the Australian Parliament that propose abolishing the Legislative Assembly and Norfolk Island Parliament were overwhelmingly supported by the people of Norfolk Island".
The Norfolk Island Legislation Amendment Bill 2015 passed the Australian Parliament on 14 May 2015 (Assented on 26 May 2015) abolishing self-government on Norfolk Island and transferring Norfolk Island into a council as part of New South Wales law. From 1 July 2016 Norfolk Island legislation will be transferred to New South Wales and subject to NSW legislation.