The idea of establishing the Australian Institute of Polish Affairs (AIPA) emerged soon after the historic transformation of Poland in 1989, which witnessed the fall of communist rule and the establishment of democracy. The new situation in Poland also caused fundamental changes of attitude in the Polish diaspora, requiring it to reformulate its political objectives and to restructure its activities. The traditional role of the diaspora, which was to strive for Poland's independence, came to a natural end. Many Polish migrants felt that in those changed circumstances the primary responsibilities of the emigré community should be directed towards the promotion of the newly independent and democratic Poland.

The foundation meeting of AIPA was held in Melbourne on 3 August 1991, when the organization's primary aims were established. The Institute's Statutory Rules were subsequently drawn up and adopted by the first Executive Committee (elected on 27 October 1991). The Canberra representation of AIPA was formed on 5 December 1991 and other branches of the association were opened in Sydney, Hobart and Perth. AIPA became an incorporated body on 18 March 1998.

The first Biennial General Meeting of the Institute took place in October 1993.

A detailed chronicle of the first decade of the history of AIPA is published in: Expanding the Dialogue: Ten Years of the Australian Institute of Polish Affairs, AIPA Inc., [Melbourne], 2001.

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