Residents of Norfolk Island do not pay Australian federal taxes, creating a tax haven for locals and visitors alike. Because there is no income tax, the island's legislative assembly raises money through an import duty, fuel levy, medicare levy, GST of 12% and local/international phone calls. In a move that apparently surprised many islanders the Chief Minister of Norfolk Island, David Buffett, announced on 6 November 2010 that the island would voluntarily surrender its tax free status in return for a financial bailout from the federal government to cover significant debts. The introduction of income taxation will now come into effect on July 1, 2016, with a variation of opinion on the island about these changes but with many understanding that for the island's governance to continue there is a need to pay into the commonwealth revenue pool so that the island can have assistance in supporting its delivery of State government responsibilities such as health, education, medicare, and infrastructure. Prior to these reforms residents of Norfolk Island were not entitled to social services. It appears that the reforms do extend to companies and trustees and not only individuals.
What reason did David Buffett give for Norfolk Island keeping its' tax-free status?