200 jobs to go as Abbott axes Australian Valuation Office

ALMOST 200 Commonwealth public servants are facing the sack, as the Abbott Government dissolves the Australian Valuation Office - a key body that oversees government contracts.

Parliamentary Secretary to the Treasurer Steven Ciobo announced the abolition of the AVO on Friday, saying it would stop providing services from June 30 this year.

The AVO is the main body that oversees government contracts and tenders, but Mr Ciobo said its financial position had "become unsustainable", with expected losses to top $4 million this year.

He said in a statement the losses were forecast to get worse each, pointing towards and potential move to privatise the AVO's responsibilities.

"A compelling case for the Commonwealth providing its own valuation services no longer exists, particularly given there is a highly competitive market of private sector providers," he said.

The move comes after a series of rounds of redundancies in the Canberra public service, including hundreds of jobs to go at the Australian Taxation Office.

Mr Ciobo said the tax office would work with those affected, and manage the "wind-down period" for the AVO, with 198 staff to be "offered redundancies".

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