Norfolk Island is to bring in a Goods and Services Tax as its government tries to raise more funds for roads and health services.
The secretary to government, Peter Maywald says the tax is needed to provide better services.
Under the new scheme, to be trialled from December this year to June 2006, all levies will be axed and replaced by the Norfolk Sustainability Levy, a one per cent GST measure.
Norfolk Islanders don't have to pay income, payroll or property tax.
Government revenue comes through custom duties, accommodation, banking and airport departure fees.