Could this be the first part of Australia to go broke?

June 4, 2012

Looking for holiday ideas (as ones does), and was flicking through the travel pages when I came across this article from March. Could this be the first part of Australia to go broke?

The picturesque Norfolk Island, which has been proudly self governing for more than three decades, has run out of money and been declared officially insolvent. An investigation by The Sun-Herald reveals that the government of the former penal colony-turned-tourist playground has been unable to pay its bills for almost a year. A collapse in the tourism industry is sending financial shockwaves across the island. Many homes, hotels and businesses are up for sale, islanders who are not eligible for Australian unemployment benefits are struggling to make ends meet and the island airline, Norfolk Air, has been grounded. A new report by the federal Department of Regional Australia shows that the federal government has pumped more than $37 million in emergency funding into the island economy to keep it afloat, more than $20,000 for each of the 1800 permanent residents.

Wow! It then goes on to discuss how the Norfolk Island residents don’t pay income tax to Australia and changes to the system may be made regarding land tax if they still want to receive funding.

Read more: here

It isn’t quite the man made Palm Jumeirah in the UAE – but I have been wanting to use this image for a while.

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