The Government of Niue is the main employer on Niue. Its 400 employees make up about one-third of the island’s population and at least half of all working age adults.
The government has a number of trading arms – including the Alofi port, a bond store, Niue Telecom, a public works department and a power corporation. In April 2009 the Government of Niue implemented a 12.5% Consumption Tax. This brought in $1.4 million in the first year.
Under the terms of the constitutional agreement between the two countries, New Zealand provides substantial economic and administrative assistance to Niue. The economic assistance is provided in the form of both direct budget support and project-related aid.