Tully, I think you're probably right...if I zoom in on some of the small islands north of Thursday, there seems to be what look like settlements...maybe Thursday Is. has some technical claim to being an official "town" whereas these more northern settlements don't?...crazy Aussies.
edit: actually I'm wondering about this "strange" situation. I copied the map below and the land part at the top is without question the mainland of Papua New Guinea, but as you can see, Boigu Island is practically a stone throw off the New Guinea mainland...so how the hell could it be Australia?...this seems like a problem waiting to happen. One day soon the natives of New Guinea will be attacking Australia to reclaim their rightful ownership of Boigu Island. Thursday Island is at least a lot closer to the Australian mainland.