7.1+Economic+System


 * __Taxation__**

To increase revenue taxes will have to be applied to those living on the island, these taxes include:

GST (10%)

Income Tax Graph Sourced from: (Australian Tax Office, 2011) These figures shall be a guideline until the island is 100% up and running which will allow an inquiry into tax rate changes.
 * **Taxable income** || **Tax on this income** ||
 * 0 - $6,000 || Nil ||
 * $6,001 - $37,000 || 15c for each $1 over $6,000 ||
 * $37,001 - $80,000 || $4,650 plus 30c for each $1 over $37,000 ||
 * $80,001 - $180,000 || $17,550 plus 37c for each $1 over $80,000 ||
 * $180,001 and over || $54,550 plus 45c for each $1 over $180,000 ||

__**Revenue**__ Tourism will be a major factor in how sustainable the economic system of the island will be. The island is a perfect mix of beach, forest and wildlife that will attract tourists from foreign countries. While the revenue bought in by tourism wouldn't be an instant fix, due to the island needing to be up and running by then, it is something to include when looking towards the future by making the island fully self sufficient.

The island's revenue stream will be largely affected by trade and exporting what can be found on the island. As stated in the information from our Agricultural and Environmental scientists there is a multitude of items on the island that can be used for export and create a sustainable economic future.

Our team must look at what resources we have on the island that we will be able to trade with the other islands around us. It is most important that we look at a source we have on the island that will be appealing to others and that the other islands are in need of. According to the Zoologist report there is a large number of bees on the island and there is a number of honey producing hives across the island. The surveyors reported is very tasty and of a high quality. Due to the difficulty countries are having with with producing honey, it would be beneficial for our island to export honey to needing countries.
 * __Produce can be produced in sufficient quantities for export.__ **

The botanist report also states that there is scrub land containing large amounts of flax, cotton, kapok and pandanus. Depending on the demand for it within other countries, these plants would be a valid source to export.

The vegetation on the island can be used in a variety of ways to help with trade. Looking more closely at the use of some of the plants and the uses that they can bring I think that the island will have a sustainable income from the trade that these will bring.

Kapok Tree: The Kapok tree can be harvested in different ways in accordance with what we think will grant the biggest economical boon to the island. Starting with the fibers from the tree which can be spud down into a substitute for down in mattresses, pillows and other upholstery. The blossoms from the tree attract honeybees and are an important source of nectar, by using this to our advantage we can harvest honey from the bees, as seen from the zoologist reports and the report from Sandy, this honey can be exported to countries having problems and will be a major source of revenue. The last item from the Kapok tree usable in the market would be the bark, which when extracted properly can be used as a cure for headaches amongst other illnesses.

(Kapoktree, 2006)

Flax: The flax plant has various uses which makes it a strong item to export. Parts of the plant can be used to make fabric, dye, paper, medicines, fishing nets, hair gels, and soap items that are used everyday making flax a very vital resource to export to create the sustainable economic growth that the island requires. The seed of the flax plant is used in linseed oil, which has uses as an edible oil, as a nutritional supplement and as an ingredient in many wood finishing products. Harvesting the flax seed in conjunction with the lumber mill gives us another resource that can be traded, treated wood.

(Flax, 2011)

Pandanus: The pandanus plant is widely used throughout Oceania and is a very versatile plant. Harvesting allows the use of the tree to be used as, housing materials, bags, mats, and for fishing allowing the island to have more goods to trade. The benefit of trading this tree also stems to the fact the it has a large range of different species, meaning the the ones growing on the island could be different to the ones growing elsewhere making the goods made from the tree different to those made from other species of the same tree.

(Pandanus, 2010)

Cotton: Cotton would be the most sought after resource being grown on the island due to the sheer amount of items that use cotton in their production in one way or another. We know the cotton will be a major boon to the revenue needed by the island as through some research we know that "In a non-drought year, the Australian cotton industry generates in excess of $1 billion per year in export revenue" (CottonAustralia, 2011)

**__Other natural resources that might be exploited for economic benefit.__** The major natural resource which is sought after in the world is oil. We know with the environmental survey that there is a possibility of oil offshore, if we could harvest this resource the island would have a major economical boon. The oil could be used both for the island and to export with oil prices rising all the time this resource will be valuable to inject the economy with a large amount of revenue to spend on other revenue raising efforts.

Mineral deposits have been found on the island, mining these could be create another potential export that we can use to trade with other countries. More research will have to go into the mineral deposits so we know what minerals are available and how they could be used/ the demand from other countries.

Although these bring a short term fix to the islands economic system, it is not sustainable as both the minerals and oil will run out at some point leaving a hole in the islands economic situation. This based on the fact that mining and drilling for oil does irreversible damage to the environment which we want to avoid.

Nanwee, White Fish, Moi and Opapa have been caught in the shallow waters, while Snapper, Big Eye and Cod have been caught in deep water. Yellow Tail and Wahoo haven't been caught but have been spotted in the waters around the island. Due to this abundance of fish supply in and around the island this could be used as a great form of export to islands around the area due to the abundance and supply available. This can also be used for not only the meat but also the scales and fish oils available.

__**Essential services that need to be provided. Where will the money come from? What other industries or ventures could be developed to generate a source of income? **__ Services that need to be provided for all persons living on the island will include: (Thursdayislandhospital, 2011)
 * Health - . Medical services on the island are of vital importance to set up, which will mean we will need to construct smaller surgeries and a large hospital. Without having adequate medical services available to the island, the only way for proper health care would be to travel to another country, which would cost an enormous amount of money and time, which patients can't afford.
 * Safety - The implementation of a police force.


 * Government - The government will be formed by 3 members per settlement allowing a group of 15 governors to overlook decisions made concerning the island. It will be there job to regulate the economic system and introduce laws for the island.


 * Education -We feel that this is important to educate all children on the island to provide a successful future for them. Primary and Secondary schools will be essential, Universities and TAFE's may be needed eventually, however there is always the option of partaking in courses online. Education on the island will be compulsory to attend but will also be provided free of charge.

(Island school, 2008)


 * Waste management -Waste disposal needs to be thought about in accordance of where the settlements are and where the waste will be transported to. This will be one of the first systems built on the island in order to do minimum impact on the surrounding environments.Individual settlements will need ways of disposing their waste, this will need to be achieved in one of two ways. Either there needs to be the implementation of a sewerage system, with all waste being collected and treated in a treatment plant, or through the use of septic tanks, which will still require the construction of a waste treatment plant and settlements will need to be built so that it is possible to access and empty these tanks.


 * Water - Plumbing and laying enough pipes to divide water across the island, or will people need to collect their own water and store it themselves. Rain water tanks will need to be installed in all settlements.


 * Labour -The manual labor force will need to be brought over to help create the starting infrastructure of the island.This will be obtained through the hiring of persons who are qualified to install and maintain the necessary facilities. For example: Electricians will be needed to maintain and build new structures, and they will be allocated apprentices to learn the necessary trade skills.


 * Energy Station-The energy stations being created will follow in accordance with the energy recommendations from the engineer and will be one of the first structures built on the island to allow other technologies to be used to create the other infer structures.

Generating revenue for the island is more complicated. Trade will possible be the most readily available means of generating revenue, with tourism being another possible option not to overlook. Some form of government will need to be implemented in order to maintain order within the island. This would be necessary in order to regulate trade and monitor levels of taxation. People earning money on the island will be taxed an appropriate figure, and will share some of their profits in order for these to be used to create and update existing measure of generating profit.

Money can also be generated through business partnerships and sponsorships. Businesses can buy island space to set up their own ventures, or can advertise their businesses through various means. This would also create competition with the other businesses on the island to better their goods, which should in turn improve the services being provided to people on the island.

__**References:**__ Australian Tax Office. (2011, August 17). //Individual income tax rates.// Retrieved August 19, 2011, from Australian

Flax(image) 2011.[| http://talkingplants.blogspot.com/2010/01/norfolk-island-flax.html]

Government; Australian Taxation Office: []

Islandschool(image)2008. farmersdaughterct.wordpress.com/

Kapoktree(image)2006.[]

Pandanus(image)2010.[]

Thursdayislandhospital(mage)2011.[]