The Australian Government says there has been a breakthrough in talks over the governance of Norfolk Island.
Since 1979 Norfolk Island has been self governed, without the application of most Australian law and services.
Earlier this year, the Australian cabinet decided to intervene in the Island's affairs because of its failing economy.
Territories Minister Jim Lloyd said the Norfolk Island government wanted to operate in a similar way to the Australian Capital Territory or Northern Territory.
Any change would require tax reform, but Mr Lloyd said it would not necessarily mean adopting the mainland's income tax system.
"Should Norfolk Island come into the GST [Goods and Services Tax] system that would be quite complex because you need the agreement of the states and territories for a change in that," he said.
"So there is an opportunity for a tax system that would be part of the Australian tax system but specifically modified for Norfolk Island."
- RADIO AUSTRALIA
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