Shamelessly plagiarizing myself:
There's one more place where an Australian citizen can work completely legally and indefinitely on a tourist visa: Svalbard! Under the terms of the Svalbard Treaty, any citizen of a treaty signatory, including Australia, may "become residents and to have access to Svalbard including the right to fish, hunt or undertake any kind of maritime, industrial, mining or trade activity."
Squint hard enough, and it looks just like Bondi Beach! Shown here in summer. (Photo mine.)
Now, there are a couple of minor catches...
- Located at 78°N, Svalbard's main town Longyearbyen (pop. 2600) is by far the world's most northernmost civilian settlement, and rather resembles Mordor after it has frozen over: lots of black rock, virtually no plants larger than lichen. This means an average February day is −21°C, a balmy summer day in August is 3°C, and oh, there's no sunlight whatsoever during the polar night between late October and mid-February. Also, you need to carry a rifle if traveling anywhere outside the town due to the large and hungry polar bear population.
- The only practical way to get to Svalbard is Norway, which can and does enforce its own visa rules. That said, once there Norway and Schengen rules (eg. the 90-in-180 limit) do not apply, all you need to demonstrate is that you have the means to support yourself.
- Essentially all private accommodation on Svalbard is owned by companies in Svalbard, which means finding a place to rent is tough to impossible. Now you could just stay in a hotel, but...
- If you thought Norway was expensive, imagine Norwegian prices with a hefty bonus for shipping everything through some of the roughest sea on Earth. You won't get much change back from US$20 if you buy a kebab and a Coke.
So hey, it's not exactly a tropical paradise island, but at least working there is perfectly legal!