Defence Strategic Policy Research Program

Purpose and Program Overview

The Defence Strategic Policy Research Program is an open competitive Australian Government grant opportunity providing operating funding to the Australian strategic policy sector. The program is intended to support high-quality research and strategic policy work that informs and shapes Australia’s defence and national security policy, strengthens engagement between Defence and the strategic policy sector, and contributes to informed public debate.

The 2026–27 Budget provides up to $58.3 million over five years, covering the period from 2027–28 to 2031–32. Funding is intended for eligible incorporated Australian organisations whose primary activities are aligned with Australian Defence Force or other defence purposes and the annual national security policy research priorities.

The program follows the Government’s response to the 2024 Independent Review of Commonwealth Funding for Strategic Policy Work, commonly referred to as the Varghese Review. It replaces the previous grants model with a longer-term funding arrangement intended to provide greater consistency and certainty for Australia’s strategic policy sector.

Key Grant Details

• Grant amount: Up to $58.3 million is available across the program over five years. There is no prescribed maximum grant amount for an individual applicant; funding for successful applicants is negotiated and cannot exceed the available funding pool.
• Opening date: 26 August 2026.
• Closing date: 23 September 2026 at 5:00 pm AEST.
• Funding period: Up to five years, from 1 July 2027 to 30 June 2032.
• Eligible applicants: Incorporated organisations in Australia with an ABN, GST registration, an Australian financial institution account and an established board informed by a skills matrix.
• Eligible sector: Australian strategic policy organisations undertaking defence and national security policy research and related activities.
• Co-contribution: No mandatory fixed co-contribution percentage is specified. Applicants must provide a clear budget identifying all income sources, including any proposed co-contribution where applicable.
• Location: National — applicants must be incorporated in Australia. Most funded activities must be undertaken in Australia, although some overseas activities may be permitted.
• Grant provider: Department of Defence, with the opportunity administered by the Department of Industry, Science and Resources (DISR).

Priority Sectors

The program is targeted specifically at the Australian strategic policy sector, rather than being a general business grant open to all industries.

Eligible organisations must undertake activities that directly support the Australian Defence Force or other defence purposes and that inform or shape defence strategic policy. The majority of an organisation’s business-as-usual activities must be directed towards the annual national security policy research priorities established by the Secretaries’ Committee on National Security and published by the Department of the Prime Minister and Cabinet.

Research and policy areas should also demonstrate alignment with the National Defence Strategy, relevant national security priorities and the broader Australian defence and national security policy environment.

Funding Scope

Funding Structure

• Total program funding: Up to $58.3 million over five years.
• Minimum grant: No specified minimum.
• Maximum grant: No prescribed individual maximum, although individual grants cannot exceed the available funding pool.
• Funding negotiation: Successful applicants will negotiate proposed funding with the administering entity.
• Applicants must explain what will be delivered for the requested funding and demonstrate the likely impact if funding were reduced to 75% or 50% of the amount requested.

Funding Category

The program provides operating funding, rather than capital funding. Eligible work must have a clear and direct connection to the program’s objectives and intended outcomes.

Eligible activities can include:

• Broadening strategic policy debate, including engagement outside metropolitan areas
• Two-way exchanges and secondments, subject to operational requirements
• Professional development of Defence personnel
• Other activities approved by Defence that support the program’s objectives and outcomes.

Project Timeline

Projects can run for a maximum of five years. Successful projects can commence from 1 July 2027 and must be completed by 30 June 2032.

Eligibility Criteria

An applicant must:

• Be an incorporated organisation in Australia.
• Hold an Australian Business Number (ABN).
• Be registered for GST.
• Have an account with an Australian financial institution.
• Have an established board informed by a skills matrix for board positions.
• Meet the program’s requirements concerning governance, transparency and funding arrangements.
• Provide all mandatory application attachments and comply with specified formatting, file-size, word and page limits.
• Comply with relevant requirements under Working for Women: A Strategy for Gender Equality and the National Agreement on Closing the Gap.

Applicants are not eligible if they are, among other excluded categories:

• Based outside Australia or are an overseas sole trader.
• Already receiving Commonwealth operating funding for strategic policy work between 1 July 2027 and 30 June 2032.
• An individual, partnership or unincorporated association.
• A trust, except where an incorporated trustee applies on behalf of the trust.
• A Commonwealth, state, territory or local government body, subject to the specified exception for eligible Commonwealth companies.
• A non-corporate Commonwealth entity.
• An employer of 100 or more employees that has not complied with the Workplace Gender Equality Act 2012.

There is no stated turnover threshold in the published eligibility criteria. Joint applications are also not acceptable under the 2026 guidelines.

Eligible Activities and Expenses

Eligible Activities

Funding may support:

• Strategic policy research and analysis
• Activities that broaden public and policy debate
• Engagement with stakeholders outside metropolitan locations
• Exchanges and secondments, subject to operational requirements
• Professional development for Defence personnel
• Other activities approved by Defence that align with the program objectives.

Eligible Expenses

Eligible expenditure can include:

• Data acquisition and analytical tools
• Research assistance and salaries directly related to eligible activities
• Facility and equipment hire
• Event catering
• Digital and physical publications
• Media and communications
• Office rental and lease expenses
• Essential office equipment
• Supplier expenses and utilities
• ICT and website maintenance
• Legal and audit expenses
• Corporate overheads, including finance, human resources, IT, publications, fellowship and internship programs, executive management and administration
• Reasonable domestic and international travel costs
• Independent audits of project expenditure, up to 1% of total eligible project expenditure.

Capital expenditure, including construction work and purchasing land or real estate, is not eligible. Grant preparation costs and expenditure incurred before execution of a valid grant agreement are also excluded.

Assessment Process

The program is open and competitive. Applications are first checked against the eligibility requirements. Eligible applications are then assessed by a Defence-led, cross-agency assessment panel, with recommendations made to Defence’s Strategic Policy Committee. The Deputy Prime Minister as Minister for Defence makes the final decision.

Applications are assessed against four weighted criteria:

1. Strategic alignment — 50 points
   • Alignment with Defence priorities and the National Defence Strategy
   • Quality, timeliness and scope of proposed research and policy outputs
   • Durability and adaptability of proposed outcomes
   • Understanding of the strategic policy environment
   • Alignment with government and national security priorities.
2. Capacity, capability and resources — 20 points
   • Governance and planning
   • Risk management
   • Skilled workforce
   • Financial, security, cybersecurity, infrastructure, technology and intellectual property management.
3. Impact of grant funding — 15 points
   • Policy relevance
   • Contribution to public debate
   • Addressing capability or knowledge gaps
   • Public engagement
   • Measurement of impact and reach.
4. Effective and efficient use of funding — 15 points
   • Cost-effectiveness
   • Strong return on investment
   • Transparent and justified budgeting
   • Efficient use of resources
   • Measurable performance indicators.

The assessment panel also considers how applications compare with other eligible applications and whether the proposed funding represents value with relevant money.

Recent Program Updates

The 2026 round represents a significant change from the previous Strategic Policy Grants Program. The Government has introduced a five-year operating funding model following the 2024 Independent Review of Commonwealth Funding for Strategic Policy Work. The new program is intended to provide greater funding certainty to Australia’s strategic policy sector.

The current guidelines were released on 26 August 2026 and updated on 2 September 2026. The update corrected the Defence contact email address in the guidelines to sp.review@defence.gov.au.

The current funding envelope is up to $58.3 million over five years, commencing in 2027–28. A September 2026 public release described the broader government investment as approximately $59 million over five years, but the current grant guidelines specify $58.3 million for this grant opportunity.

Application Tips

• Confirm that the organisation satisfies every mandatory eligibility requirement before preparing the substantive application.
• Demonstrate that the organisation’s broader business-as-usual activities, not merely a new subsidiary project, are substantially aligned with Defence and national security policy priorities.
• Clearly connect proposed activities and outputs to the National Defence Strategy and relevant annual national security research priorities.
• Prepare a detailed and transparent operating budget covering all income sources, expenditure and deliverables.
• Explain the consequences of receiving 75% and 50% of the funding requested, as required by the guidelines.
• Prepare the required project and risk management plan, funding evidence, board skills matrix and other mandatory attachments in advance.
• Demonstrate organisational capability, governance, cybersecurity, risk management and intellectual property protections.
• Provide measurable indicators for policy impact, public engagement and reach.
• Ensure the application complies with all word, page, file-size and formatting requirements.
• Submit the complete application before the 23 September 2026, 5:00 pm AEST deadline, as late applications cannot be considered.

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact Pattens Group to discuss the organisation’s eligibility and application requirements. For official guidelines, application details, templates and further information, applicants should refer to the Defence Strategic Policy Research Program on business.gov.au and the Strategic Policy Grants Program information published by Defence.