Foreign Minister Bob Carr said this week that failure by PNG to hold its planned mid-year elections would be a "shocking model" for the Pacific.
He threatened a sharp Australian response if PNG prime minister Peter O'Neill heeded internal calls to put off mid-year elections.
"We'd have no alternative but to organise the world to condemn and isolate Papua New Guinea," the senator told Sky News.
"We'd be in a position of having to consider sanctions."
Senator Carr on Friday issued a statement saying his comments had been "misunderstood and used out of context".
Senator Brown said Australia should support PNG.
"Instead of making the statement Bob Carr made, we should be offering PNG even greater assistance to make sure the election ... is fair, above board and not corrupted," Senator Brown told reporters in Canberra yesterday.
Senator Brown said while PNG has a large resource base, it does mean "there is potential for money to flow to outside interests, including Australian corporations, at the expense of local people".
There is also the problem of the takeover of land by foreign companies.
"This election is an opportunity for the people of PNG to assert their own control over their own land," Senator Brown said.
"If their politicians are doing the wrong thing, then throw them out."