The Nauru Independence Act passed through the Parliament of Australia, enabling the UN Trust Territory of Nauru to gain independence. Following years of British and Australian administration after World War I, Nauru had developed a distinct national identity driven by its unique cultural heritage and the economic significance of its phosphate resources. The negotiations leading up to the Act focused on Nauru’s desire for self-governance and control over its natural resources. The Act was the culmination of a gradual decolonization process that reshaped Nauru's societal structure and political landscape.

On January 31, 1968, Nauru officially became independent, adopting a parliamentary democracy with a President as its head of state. The act emphasized the need for sustainable development, particularly concerning the environmental impact of phosphate mining that had significantly altered the island's landscape. With independence, Nauru was empowered to manage its resources, establish diplomatic relations, and take part in international organizations, such as the United Nations, affirming its sovereignty on the world stage.

The announcement of independence was met with celebrations from Nauruans, who saw this as a moment of national pride and self-determination. The new status allowed them to address issues that they felt were previously marginalized under colonial rule, providing a pathway to greater social and economic opportunities. In this period, Nauru also began to develop its identity as a small island nation, navigating the complexities of international relations while being a custodian of its unique ecological and cultural heritage.