Foreign policy think tank ASPI set for public funding cut

A prominent Australian think tank known for its critical stance on China will have its taxpayer funding cut after a sweeping government review of public support for national security research.

The Albanese government has released a report by former bureaucrat Peter Varghese, who recommends an overhaul of funding for the Australian Strategic Policy Institute (ASPI) and other institutions.

One of the key recommendations states the government should also “cease funding for ASPI’s Washington, D.C. Office” by this financial year, despite being opened by Defence Minister Richard Marles only two years ago.

Mr Varghese said funding for ASPI and other national security research should be subject to competitive evaluation every five years, which the government has accepted.

“Government should adopt a five-year cycle for providing operating funding to the sector, commencing in 2027-28,” the review states.

“The new funding cycle should involve a performance evaluation in year three and an open tender process in year four.”

The government has accepted eight of the report’s 14 recommendations in full.

Public funding for “anti-China” think tanks was one of Beijing’s 14 grievances revealed during the diplomatic low point between China and Australia.

Ahead of the official release of the Varghese report, ASPI’s Executive Director Justin Bassi slammed the recommendations from the former DFAT secretary.

“I can say that the early impressions that this review was an effort to clamp down on ASPI and the contestability that it provides on national security policy have been confirmed,” Mr Bassi said.

“Even more importantly, it sends a clear signal to all Australian national security think tanks that the government will exercise greater command and control over their work,’ he added.

“Every think tank will have to stop and ask themselves whether criticising the government or seriously challenging its national security agenda will affect their chances of receiving future funding.”

Labor unease over Liberal staffers

Mr Bassi is a former Liberal staffer who was appointed as head of the think tank by then-defence minister Peter Dutton in 2022.

Inside Labor circles, there has been growing disquiet at the direction of ASPI under Mr Bassi’s leadership, particularly his decision to hire numerous former Liberal Party staff members and to publish research highly critical of Labor policies.

During Mr Bassi’s tenure, several highly experienced defence analysts left the organisation, while other employees privately told the ABC of poor morale inside the think tank.

In a statement, Shadow Home Affairs Minister James Paterson and Shadow Defence Minister Andrew Hastie said the review recklessly undermined the nation’s national interest.

“The recommendations of the Labor–commissioned [review] … would see ASPI neutered, silencing an influential voice in the national security debate at a time when it is most needed,” the statement said.

“The Albanese Government’s agreement to the recommendation to defund ASPI’s office in Washington D.C. could not come at a worse time ahead of President Trump’s inauguration next month.”