I'm not sure what the correct way for placing a verb in such cases is:
"May I ask what Australia’s policy is regarding this scheme?"
or should it be
"May I ask what is Australia’s policy regarding this scheme?"
Or are they both acceptable?
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Both would likely be acceptable in speech, as the commenters above indicate, but the first one makes more sense in writing; placing "is" after "policy" indicates more clearly that you are asking about the policy. Granted, there wouldn't be much doubt that that is what you want to know about, but the placement of "is" in the first instance is clearer.