A peaceful paradise known for its iconic pine trees and spectacular coastline, Norfolk Island is riddled with political tension and simmering social unrest.

More than 1,600 kilometres north-east of Sydney, residents living on this tiny rock in the South Pacific have the New South Wales postcode of 2899, abide by its laws despite having no state member, and belong to the Australian Capital Territory federal seat of Bean.

Norfolk Island political fast facts: Prior to 1979: Self-government, administration handled between Federal and NSW Governments

Self-government, administration handled between Federal and NSW Governments 1979: The Norfolk Island Act allowed for limited autonomy, and Legislative Assembly established

The Norfolk Island Act allowed for limited autonomy, and Legislative Assembly established 2008: Global financial crisis hit Norfolk Island's economy

Global financial crisis hit Norfolk Island's economy 2010: Self-government surrendered in return for Commonwealth bailout

Self-government surrendered in return for Commonwealth bailout 2015: Norfolk Island Legislation Amendment Act 2015, the Legislative Assembly is shutdown. No official democratic vote among residents

Norfolk Island Legislation Amendment Act 2015, the Legislative Assembly is shutdown. No official democratic vote among residents 2016: All Australian services implemented

Other external territories, Christmas Island and the Cocos (Keeling) Islands have similar arrangements.

Three years after the rollout of Australian services, residents say the changes are destroying families and friendships within the community of around 1,780 people.

"I've got lifelong friends who mortally despise each other now as a result of the politics of the last five years on Norfolk Island," said Chris Magri, a member of the Norfolk Island People for Democracy.

The group has erected hundreds of green hands throughout the island — a symbol of defiance against the territory's current governance.

Mr Magri is a Pitcain Island descendent of the Bounty mutineers. He said the island needed greater self-determination and cannot go back to the previous model of limited self-rule.

"The 1979 arrangement left the Commonwealth with a hatchet over our head … and they dropped that hatchet in 2010 and here we are," Mr Magri said.

"We've been left in a democratic deficit. All [the community] really wants is to have a meaningful say in their future."

Norfolk Island residents say political tensions are tearing their community in two. ( ABC Western Plains: Claudia Jambor )

'Why would we want to go back?'

The external territory's administrator, Eric Hutchinson, admits the island's transition from 2016 could have been smoother.

"We could have helped more on a human level than perhaps we did at the time," Mr Hutchinson said.

The convenor of the Women's Advocacy Group Norfolk Island, Eve Semple, said the introduction of Medicare as well as improvements to domestic violence laws were signs of progress.

Eve Semple's campaign work for women's rights was recognised by the administrator of Norfolk Island on Australia Day this year. ( ABC Western Plains: Claudia Jambor )

"We knew that women on the island were taking their kids to the hospital, but weren't taking themselves because they couldn't afford it. And that just didn't sit right with us," Ms Semple said.

Anti-Commonwealth sentiment simmers on the island, but Ms Semple is not looking back and has helped to facilitate workshops to help women adapt to some of the changes.

"Why would we not want to protect women and children? Why wouldn't we want to pay award wage? Why wouldn't we want access to Medicare, and the Pharmaceutical Benefits Scheme?" she said.

One of the uncertainties facing the island is that New South Wales is only signed up to provide health and education services until 2021 with no indication of being extended into the future.

Consultations are progressing to co-design the island's new hospital and a permanent GP is set to start, but many are concerned the island's health is ailing due without a medical theatre and limited specialist care.

Mr Hutchinson has assured the territory it will not be left without.

"I don't think anybody in the community here on Norfolk Island should be concerned that there won't be solutions found to these things," he said.

Eric Hutchinson started his two-year term as administrator of Norfolk Island in April 2017. ( ABC Western Plains: Claudia Jambor )

Former chief minister of the Norfolk Island Government, Geoff Gardner OAM, said the changes have stirred deep anger and have split families.

"Parts of families are saying this is the best thing since sliced bread. We can get the dole now; we can get all of this support," Mr Gardner said.

While he said most people accepted that change was needed, but it has not happened in the way they had hoped.

"The changes that I think people were looking for was the development of a true partnership with the Commonwealth to take the island forward," he said.

New battlelines drawn

Inside the sandstone walls of the island's former legislative assembly stands a makeshift tent embassy built by activist Duncan Sanderson. For more than a 1,000 nights he has advocated on the historic public grounds for a return to self-rule.

Mr Sanderson is among a group of self-determinants who have pinned their hopes on a case before the United Nations, led by international human rights lawyer Geoffrey Robertson QC.

Duncan Sanderson's tent embassy has been up and running for more than 1,000 days. ( ABC Western Plains: Claudia Jambor )

In December, the UN's Human Rights Council recognised their petition opposing Australian governance. The Australian Government now has until June to explain why the current arrangements are not a breach of Norfolk Islanders' democratic rights.

Mr Sanderson said he was desperate to return home, but he would not budge until the island returned to self -governance with the support of Australia or another accommodating country.

"When we are listed with the United Nations as a self-governing territory then the tent embassy will have done its job," he said.

Kyle Czech returned to Norfolk Island to reinvigorate his partner's family deli, Slick and Sons. ( ABC Western Plains: Claudia Jambor )

The future of Norfolk

Empty shopfronts scattered through the island centre illustrate the business community's ongoing struggles.

The introduction of higher wages in 2016 has crippled Agnes Hain's tourist attraction and while she has had to slash her opening hours, she is cautiously optimistic about the future.

"New businesses are feeling their way and I'm hoping that they'll succeed, and time will tell," Ms Hain said.

A new ethical organic goods store, gourmet delicatessen and cocktail bar are hallmarks of a modern shift in the island's economy over the past year, tapping into young people and families visiting and migrating to Norfolk.

Kyle Czech moved from Melbourne more than a year ago to reinvigorate his partner Pete's family delicatessen.

Mr Czech sees big opportunities for businesses on Norfolk Island in the coming years.

"It's going to be interesting, businesses working with other local businesses and collaborating, creating new ventures where previously it may not have been possible but now it is because of better internet and services available," Mr Czech said.

Freight ships service Norfolk Island monthly but can only be unloaded on calm seas. ( ABC Western Plains: Claudia Jambor )

For administrator Eric Hutchinson, the evolution of the community signals a new era for the island.

"I know for a fact that many of those people, particularly those with young children, simply wouldn't come back if there wasn't that level of support that is provided by the services that the Australian Government provides," Mr Hutchinson said.

"You cannot ignore that."