Australia's Federal Territories Minister, Jim Lloyd says changes to Norfolk Islands powers of self government, won't happen overnight, but need to happen.
A report commissioned by the Australian government last year, showed that Norfolk Island could become insolvent within 18 months.
Mr Lloyd says however, the process is not easy and will take some time before implementation.
"There is a long ongoing consulation in process that is now in place, put forward two models for the Norfolk Island government and the community to consider in relation to a modified form of governance."
Mr Lloyd says they hope to have a model in place by the end of this year.