New Zealanders are in limbo after the Australian government stripped Norfolk Islanders of their self-rule rights.

Hundreds of disenfranchised New Zealanders are in limbo after the Australian government stripped a remote island community of longstanding self-rule rights.

Norfolk Island, settled by the mutineers from HMS Bounty, is closer to New Zealand than Australia.

It was once a harsh convict prison, one of Australia's oldest territories and, since 1979, residents have enjoyed limited self-government.

The Australian government has removed Norfolk Islanders' right to govern themselves despite vocal objections and a petition to the United Nations.

But, as of July 1, when a new council was elected, the Australian federal government has taken over responsibility for delivering services, despite protests from residents, a petition to the United Nations and vocal objections to the handling of reform legislation.

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* Norfolk Island's settler legacy

* New Zealand's convict history

The 2011 census recorded 1796 residents, with 80 per cent Australian citizens and 13 per cent - around 230 people - New Zealand citizens.

Many of the islanders can trace ancestry to the HMS Bounty mutineers, Tahitians and Pitcairn Islanders who were resettled on Norfolk in the mid-19th century by Britain.

In a 2015 referendum, almost seven out of 10 people supported self-government, but the new Australian legislation removed the islanders' right to hold referenda.

Supplied An aerial view of Norfolk Island, one of the most remote island communities in the world.

A vocal opposition group, the Norfolk Island People for Democracy, has lobbied for a legislative review of the federal decision to run the island as part of the administration of the Australian state of New South Wales.

New Zealander Geoff Bennett has called the island home for half a century.

He is most concerned about access to healthcare because Medicare entitlements are limited for New Zealanders.

The island's penal settlement is a UNESCO world heritage site.

He, like many islanders, has several irons in the fire but his main job is running the supermarket.

Bennett said he was not the only Kiwi islander left wondering about the future after such a pivotal change in Norfolk's administration.

Laws enacted in Canberra extend to Norfolk now, changing the arrangements for tax, immigration, customs, biosecurity and healthcare.

Islanders without Australian passports have been offered the option of taking up citizenship but he said he was a proud New Zealander and did not want to accept an Aussie passport in exchange for medical care.

He first moved to Norfolk, which is about half the size of Auckland's Waiheke Island, in 1962 and said he was considering returning to New Zealand.

"There was no requirement you had to have Aussie citizenship to participate in the electoral system.

Norfolk Island is a small, remote, island community run for decades as a self-governing territory of Australia.

"The Australians had a belief the non-Australians were having too much influence. Just a load of crap.

"The Norfolk Island people are gentle people and they needed a few people to articulate their views.

"They targeted us and labelled us as self-interested people and in my case it was all about avoiding tax. At my age [mid 70s] tax does not represent a problem."

By stripping their self-rule rights, islanders were being disenfranchised and, potentially, displaced.

"New Zealanders, or non Australians, are still disenfranchised, you cannot vote in local council elections and we cannot vote in Australian elections.

"Quite frankly I'm a proud New Zealander and I would not prostitute my nationality just to get a vote. It's too high a price to pay.

"For the elderly people like us the difficulties are, apart from not being able to vote, we have limited healthcare cover and at our age you need to be certain of your medical facilities."

Bennett said Australia's Medicare was available to islanders but there were limitations.

"We had a better healthcare system than Medicare.

"We're not quite certain what we are going to get. Similarly with social services. They haven't explained what New Zealanders or other non-Australians may or may not get.

"I'm in my mid 70s. At my age you have to consider access to medical care."

Bennett said there were theories about the intent of changing administration and bringing Norfolk Island under Canberra, ranging from defence strategy, to fishing rights and untapped seafloor exploration potential.

The island was now technically part of New South Wales. However, Norfolk Islanders do not get a say in state representation under the reforms, only federal elections.

Norfolk Island People for Democracy have been running a spirited campaign and enlisted a prominent lawyer, Geoffrey Robertson, who has said the move by Australia showed an inability to tolerate democracy and difference.

Some simply do not consider themselves Australian and experts have said islanders are ethnically, culturally and linguistically distinct from Anglo-Australians.

Islanders speak English and "Norf'k", a distinct dialect derived from the creole and nautical language of Bounty descendants and Tahitians.

Tourism was the engine of the island economy but it was hit hard by the global financial crisis and Australia was approached for help.

Objectors argue the island was simply administered by Australia and, as a former British colony, it was never formally annexed.

Islanders sing "God Save the Queen" as their official national anthem but now, with the introduction of Australian rule, many feel they have lost their voice, their identity and their democracy.

They have staged protests, and camped outside parliament.

Acknowledging the islanders did not always get self-government right and reform was needed, Bennett said the majority favoured self-rule but this was lost in translation between Norfolk Island and Canberra.

Australian minister for territories Paul Fletcher and the federal government have repeatedly said the changes will deliver better services for people, in line with services in other similarly remote parts of Australia.

Comment has been sought from the Australian Department of Infrastructure and Regional Development.

New Zealand's Ministry of Foreign Affairs and Trade said Norfolk was part of Australia and any questions should be directed to Canberra.