It may be a lonely speck in the South Pacific, but the Australian takeover of Norfolk Island has sparked criticism from the other side of the world and exposed deep divisions within the small community.

Key points: Concerns have been raised about Australian governance on Norfolk Island

Concerns have been raised about Australian governance on Norfolk Island Internal audit questions tens of thousands of dollars in spending

Internal audit questions tens of thousands of dollars in spending The Australian administrator of Norfolk Island says self-government failed

The Australian administrator of Norfolk Island, Gary Hardgrave, says his wife has been spat on and his car egged by some pro-independence supporters, as the fight for sovereignty of the tiny island descends into name-calling and confrontation.

Opponents of Canberra's takeover of the island are accusing the Australian administration of wasting taxpayers' money, favouring pro-Australian businesses and censoring the radio station — claims that Mr Hardgrave has denied.

Australia abolished self-government on the island in June, prompting protests from members of the British Parliament and a leading human rights lawyer to approach the United Nations to allow an act of self-determination.

Norfolk Island's convict ruins, and Government House where the administrator resides. ( ABC News: Alexandra Blucher )

But the Federal Government defends the takeover, saying Norfolk was reliant on funding from Canberra and was unable to run basic services such as the hospital.

Norfolk's laws will be taken from New South Wales and its residents will vote in the federal electorate of Canberra.

About half of the 1,400 people who live permanently on Norfolk Island are descended from the Bounty mutineers and their Tahitian wives whose families moved from Pitcairn Island in 1856.

Former chief minister Andre Nobbs, who is descended from an old Pitcairn family, said Norfolk Islanders wanted an official vote on the issue of the island's sovereignty.

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"History is being rewritten around us about who we are and who we were. Our political heritage has been completely erased. You imagine all of those things happening to you as a people or a nation."

Andre Nobbs is a former chief minister of Norfolk Island. ( ABC News: Alexandra Blucher )

However, another former chief minister, Mike King, disagreed and said self-government failed and access to Medicare and other services under Australian administration was a boon for the isolated community.

"We put our hand up in 2010 for some funding from the Federal Government, from the Australian taxpayers because we couldn't pay our bills," Mr King said.

"We were approaching insolvency, if not having already arrived at that point of insolvency."

An internal Federal Government report, seen by 7.30, suggests only 200 people on the island are "strongly opposed" to the takeover, a figure rejected by pro-independence supporters.

'A complete waste of taxpayers' dollars'

Amid the rising tensions, concerns are being raised about how the new Australian administration is running the island.

7.30 has obtained an internal audit of the administration that suggests tens of thousands of dollars of work was ordered without quotes.

Pro-independence protest signs take aim at island administrator Gary Hardgrave. ( ABC News: Alexandra Blucher )

The audit report from April this year looked into the engagement of consultants by the administration, and raised questions about whether purchasing principles were followed.

"Any expenditure from $20,000 to $50,000 the requisitioner must obtain three written quotations," the audit stated.

"There was no evidence of quotes received in the documentation held in accounts records or evidence to show otherwise."

The audit report also concluded that two senior administration officials had possible or perceived conflicts of interest by "engaging or arranging the engagement" of consulting firms they had interests in or links to.

Administrator Gary Hardgrave told the ABC he supported a "complete and open inquiry" into the concerns raised by the audit.

"Everything should be fully outed. Sunlight is always a good thing on these things," he said.

But a spokeswoman for the Territories Minister Fiona Nash said the audit document "contains no substantiated claims ... its incomplete release is very unusual".

One Nation leader Pauline Hanson, who has campaigned against the takeover, questioned the tendering of contracts under the Australian administration, saying people raised the issue with her during a visit to Norfolk Island in October.

"All I've seen over there is a complete waste of taxpayers' dollars," said Senator Hanson.

"The people don't want this. They have not asked for the money from Australian taxpayers to be thrown at [them] like this."

Claims of spitting, intimidation and egging

The "Hands Up" campaign is crowdfunding the fight against the Australian takeover. ( ABC News: Alexandra Blucher )

Much of the discontent on the island has been levelled against the Canberra-appointed administrator, Gary Hardgrave.

"I personally think he was sent here because he is an arrogant bully," said plumber Ernie Christian, who was convicted of assault after slapping a supporter of the takeover during a confrontation.

"He was sent here to do a job and that was to divide us."

But Mr Hardgrave, a former federal Liberal MP and radio presenter, says the division on the island is being driven by a minority of residents who he accuses of being behind a campaign of bullying.

Gary Hardgrave says his wife has been spat on and his car egged. ( ABC News )

"Others are being reminded that the old tradition is we'll burn your house down if you don't do the right thing," he said.

Mr Hardgrave accused some of the pro-independence campaigners of crossing the line into abuse and intimidation.

"My wife has been spat on, my wife has been hit. She has had the full vernacular of four letter words called at her mainly because she is my wife."

When 7.30 met Mr Hardgrave at Norfolk Island's airport on his return from the mainland he was greeted by about 10 pro-independence demonstrators singing God Save the Queen.

Former chief minister Andre Nobbs does not excuse any violent action, and vehemently rejects claims that members of the community are engaging in threats and intimidation.

"What we would like to see is evidence, we have got evidence for everything we are saying about how the community feels about what is going on," he said.

"An egg was apparently lobbed up in the air and landed on his car. Our constitution has been ripped out from underneath us, our heritage has been ripped out from around us. Don't you think that you would get a little bit agitated?"

Locals take fight to UN

Sorry, this video has expired A mutiny is brewing on Norfolk Island following the Australian takeover.

Opposition to the abolition of self-government on Norfolk has stirred passions on the other side of the world.

Andre Nobbs and fellow Norfolk Islander Albert Buffett travelled to London to meet with a bipartisan group of UK parliamentarians and human rights lawyer Geoffrey Robertson QC, who have joined forces to try to get Canberra to reconsider the takeover.

"We need to say to Australia just stop. Row back," said Conservative MP Andrew Rosindell, who visited Norfolk Island with two colleagues in October.

"Work with the local people, come to an agreement whereby Norfolk Island can, if they choose, remain under the administration of Australia, but allow the people to keep their culture, keep their identity."

Mr Robertson has delivered a petition to the United Nations, in a bid to put international pressure on the Australian Government to allow the islanders to have a vote on their own future.

"It's a rich irony, isn't it, that the initial persecutor that lead them to Pitcairn and then to Norfolk was Captain Bligh," Mr Robertson said.

"And their independence is now being snuffed out by Mr Malcolm Bligh Turnbull. Named in honour of the cantankerous captain."

The office of the Territories Minister Fiona Nash said every effort was being made to foster Norfolk Island culture, with traditional days to be enshrined as public holidays and the teaching of the Norfuk language to continue at school.