The Independent State of Papua New Guinea (PNG) is Australia's closest neighbour, with less than four kilometres separating it from Australia at the nearest point.
PNG is one of the most culturally diverse countries in the world, with over 800 languages and hundreds of indigenous ethnic groups. The spectrum of PNG society ranges from traditional village-based life, dependent on subsistence and small cash-crop agriculture, to modern urban life in the main cities of Port Moresby (capital), Lae, Madang, Wewak, Goroka, Mt Hagen, and Rabaul. Some 80-85 per cent of the population directly derive their livelihood from farming, and 15 to 20 per cent of the population live in urban areas. Population growth is estimated to have been 1.9 per cent in 2022 (World Bank) with more than half of the population under the age of 23.
Australia and PNG share a warm, broad-ranging relationship of deep historical and contemporary importance to both countries. Our modern partnership is underpinned by joint commitments to the PNG–Australia Comprehensive Strategic and Economic Partnership (2020), and most recently the Bilateral Security Agreement (2023), which provide a framework for closer security relations. PNG is Australia's largest development partner, with an estimated AUD637.4 million in Official Development Assistance (ODA) funding (2024–25), and AUD2.56 billion in budget support loans (non-ODA) since 2019, linked to fiscal repair and economic reform. Australia is a trusted security partner for PNG through an extensive defence cooperation program and a long‑established policing partnership.
Australia is PNG’s biggest trade partner with bilateral trade of over AUD5 billion in 2022-23. Australia is also a major investor in PNG, with investment valued at around AUD26 billion in 2022. Data from the Australian Bureau of Statistics indicates more than 4,000 Australian companies export to PNG.
The AIFFP in PNG
Australia’s investment in PNG, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), includes:
Infrastructure sectors: maritime and transport; grid-scale energy; and off-grid renewable energy
Partners (A-Z): Caritas; Catholic Church Health Services; Government of PNG; Kokoda College; Kokoda Track Foundation; MiBank; PNG Department of Works and Highways; PNG Ports Corporation Limited; PNG Power Limited; and Sola PayGo
Projects (A-Z):
Accelerating access to renewable energy and jobs for remote Papua New Guinea communities
Improving energy accessibility and reliability for essential healthcare services in remote Papua New Guinea communities
Lighting the way for Kokoda College’s sustainable future in Papua New Guinea
Maintaining the Wau Highway in Papua New Guinea
Powering homes and businesses in Papua New Guinea’s Morobe and East New Britain provinces
Upgrading ports across Papua New Guinea
Australian High Commission, Port Moresby
Godwit Road (Waigani)
Port Moresby NCD
Phone: +675 7090 0100
Australian Consulate-General, Lae
Level 4, Nambawan Supa Haus
2nd Street, Top Town
Lae
Phone: +675 7999 5300
Email: Consulate-General.Lae@dfat.gov.au
For more information on Australia and PNG’s diplomatic relations, see the DFAT website.