A new Australian study says Papua New Guinea is facing a vicious cycle of failing governance and revenue.
The Australian Strategic Policy Institute says Australia needs to adopt a fresh policy approach to the country.
It says a new start would involve a deeper engagement, greater commitment and even bigger costs than Australia had so far been prepared to accept.
It said that would require big changes on how Australia thought about and conducted the relationship with PNG.
PNG is Australia's largest aid recipient since independence.
