This review (referred to as the Varghese Review) assessed all Australian Government funding to non-government organisations for national security-related research, education and engagement activities. It found that while the current system delivers many benefits, there is considerable room for improvement. 

The strategic policy sector plays an important role in driving public discussion and strengthening partnerships on national security matters. There are currently no whole-of-government objectives and priorities for the funding of national security strategic policy work. The Commonwealth provides approximately $40 million per annum to the sector to undertake research, convene events and deliver professional development activities. Seven organisations receive almost two-thirds of Commonwealth funding for the sector.

Of the 14 recommendations in the report, the Government has agreed to eight in full, three in-principle, and has noted three. 

Key recommendations

• Implement a principles-based framework to support consistent decision making on commissioning strategic policy work.
• Provide annual priorities for the think tank and strategic policy sector.
• Preserve the independence of departments and agencies to commission strategic policy work, provided decisions are consistent with the framework and annual priorities. 
• Adopt a five-year cycle for providing operating funding to the sector, commencing in 2027-28.
• Government should increase secondments and two-way exchanges with organisations, prioritising high-achieving individuals.
• Funding for the United States Studies Centre (USSC), Perth USAsia Centre (USAC), Australian Strategic Policy Institute (ASPI) and National Security College (NSC) should be extended until 30 June 2027 to align with the commencement in 2027-28 of the new five-year funding cycle