Businesses in Papua New Guinea ready for change as new year approaches
Papua New Guinea’s financial year is almost over and there are many green shoots appearing in the economy. At the same time, business needs to be ready for some significant changes in the new year.
The festive season approaches at a Brian Bell Homecentres retail store in Boroko, Port Moresby. Credit: BAI
1 January 2026 will be upon us soon enough. For businesses in PNG, that will mean some early changes as the new financial year takes shape. A new Income Tax Act is set to come into law, and the country’s minimum wage is set to rise. Resources and primary production operators will also have noted the 2026 National Budget introduced an increase in the amount permissible under the widely-used Infrastructure Tax Credit Scheme, up from two per cent to three per cent.
In February 2026, we can also expect the greylisting of PNG by the Financial Action Task Force (FATF), the intergovernmental body responsible for setting international standards on anti-money laundering and counter-terrorism financing.
We’ve been discussing the implications of this with the country’s bankers and hope to have more to say about it early in the new year.
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For many in PNG business, especially in the mining and petroleum sectors, the business year isn’t really over until industry body PNG CORE has held its annual December conference in Sydney.
The event, held last week, featured some interesting announcements, notably the Project Development Agreement for Pacific Lime and Cement’s (PLC) project in Central Province, which was followed almost immediately after by the company’s listing on the PNG National Stock Exchange.
With negotiations on the long-awaited Wafi-Golpu copper-gold project still under way – as Prime Minister (and acting Mining Minister) James Marape told delegates – PLC looks set to launch the first new significant mining or quarrying project in PNG since the Ramu Nickel mine commenced production in 2012.
PLC’s project is also notable for being sited in a Special Economic Zone (SEZ). With the Philippines’ R D Tuna also reaching a deal with the PNG Government to create a new cannery in a Madang SEZ, PNG’s SEZ regime is starting to take shape. More deals are expected next year.
Also reassuring were the presentations by gas developers TotalEnergies (Papua LNG) and Twinza (Pasca A), who are both still planning to get to final investment decisions next year. Meanwhile, the operators of the country’s existing productive mines all outlined their plans for further investment.
Another feature of the program was the strong involvement of Australia. The presence of Australia’s Prime Minister was a first for the event. With Australia supporting port, road and telecommunications infrastructure in PNG through both its existing programs and new spending as a result of the recently-signed Pukpuk defence treaty, there was plenty to talk about. Australia’s support for the PNG Chiefs’ entry in Australia’s National Rugby League competition in 2028 was also emphasised.
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Lastly, if you are a regular reader, you will have noticed quite a change to www.businessadvantagepng.com this month.
Our site has been given a complete overhaul, to give it not only a fresh, modern design that should look great on any screen size, but to make it easier for you to navigate, find helpful resources, read our publications and share our content with others.
It all helps to set us up for what will be our 21st year covering of business and investment in PNG next year. It’s likely be a busy one.
From all of us at Business Advantage PNG, have a happy and safe end to 2025 and a prosperous new year.
