The latest Kokoda Paper, Skin in the Game: Realising Australia's National Interests in Space to 2025, argues that the country needs to become involved in debate on the future of space exploration, and that, to be taken seriously in that debate, needs to operate its own satellites.

The latest strategy paper from the Kokoda Foundation think-tank proposes that Australia buy two remote sensing satellites to remove the nation's reliance on those owned by others.

''Space is a vital, although understated, component of Australia's national security strategy,'' it states. ''Space-based utilities and services provide communications, timing, navigation, and remote sensing data on which the nation increasingly relies.''

All the satellites Australia relies are optimally positioned to observe other parts of the world, mainly sites in the northern hemisphere. ''Australia takes second best in terms of where and when information is obtained, by whom it is obtained, with whom it is shared and when it is released to Australia for analysis and use,'' it says.

More and more nations and organisations were moving into space and the report indicated Australia ought to move quickly to join them.

The report said the electro-magnetic spectrum, especially that part used by satellites, was finite and its allocation ''becoming increasingly complex and contested''. It added, ''In a related development, the positions or slots available for satellites in geostationary orbits around the Earth are running out and the possibility of mutual radio interference between satellites which are relatively close to one another is of increasing concern to satellite operators.''

Defence's reliance on satellites was going to increase significantly in the coming decade as its networked force developed.

''Next-generation systems, including new fighter aircraft, destroyers and future soldiers will simply not function very well without access to space communications and space-derived data,'' it said.

The report proposes a seven-step plan that would give Australia a basic space capability by 2015.

It calls for a cabinet-endorsed national space strategy, a space coordination unit within the Department of Prime Minister and Cabinet, and creation of an organisation to design, construct and operate satellites.