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Government to put observers on national security think tank boards

The long-awaited review into Commonwealth-funded national security research divides think tanks into those receiving core operational funding and those receiving project grants.

Former DFAT secretary Peter Varghese handed in his review to the Prime Minister's department in July. AAP/Daniel Pockett

A review into national security research by former senior bureaucrat Peter Varghese has recommended that think tanks receiving core Commonwealth funding should include a government observer on their boards to oversee internal operations.

According to multiple think tank sources briefed on the review, it also recommended the Australian Strategic Policy Institute’s (ASPI) Washington DC bureau cease receiving funding and that core funding for think tanks go out to tender in two years.

ASPI, which received around $2.5 million a year to establish and operate the Washington office, currently receives around $4 million annually in core funding from the Department of Defence.

Prime Minister Anthony Albanese's department will release Varghese’s review tomorrow, which will include 14 recommendations to overhaul Commonwealth funding for national security think tanks and university bodies.