Best Answer: Australia is one continent. Many times people refer to the area of papua new guinea and australia as Oceania. Papua new guinea is part of the south pacific. papua new guinea is the biggest island in the south pacific and 2nd biggest island in the world.Papua new guinea should not be referred to as being part of australia.Papua new guinea became an independent nation over 30 years ago. Hope this helps.apua new guinea is part of the south pacific. papua new guinea is the biggest island in the south pacific and 2nd biggest island in the world. Papua new guinea should not be referred to as being part of australia. Papua new guinea became an independent nation over 30 years ago.