Parliament has passed the Tax Laws Amendment (Norfolk Island CGT Exemption) Bill, Minister for Small Business and Assistant Treasurer, the Hon Kelly O'Dwyer MP said.
"The Government is delivering on another election commitment by delivering taxation, social security and healthcare arrangements to Norfolk Island," Minister O’Dwyer said.
"These amendments will enable Norfolk Island residents to access a broad range of Australian Government programs helping them to improve vital infrastructure and other community assets.
"In addition, Norfolk Islanders will transition into the mainstream tax system with Norfolk Island residents beginning to pay Australian taxes when these changes come into effect on 1 July 2016.
"Due to difficulties that Norfolk Island residents may face obtaining records, capital gains tax will be payable on assets acquired after 24 October 2015.
"This Bill significantly assists the community in transitioning to the new arrangements and will ensure the Norfolk Island reforms do not impose compliance costs or result in potential retrospective taxation of capital gains."