The Australian Papua New Guinea Business Council says a reciprocal visa arrangement would make it easier for the two countries to do business together.
The Papua New Guinea government says it will no longer issue visas on arrival for Australians, unless Australia agrees to allow Papua New Guinea citizens a similar arrangement when travelling there.
It has said the ban will not include tourists.
The council's president, Peter Taylor, says it is unlikely such a move would affect Australian business people because many travel on multi-entry business visas which run for a year.
But Mr Taylor says having a reciprocal agreement between the two countries would be a positive step.
"As a business council, our view is that the easier it is for citizens of both Australia and Papua New Guinea to move between the two countries the better. I mean we would like to see all barriers broken down so you know there's free movement between the two countries. But we also respect both to regulate entry and border control and security, and set the regulation."
The Australia Papua New Guinea Business Council president, Peter Taylor.