As part of the Abbott government's cost-cutting measures to be announced this week in the budget, the Australian Tax Office (ATO) will axe 3,000 jobs, reports said.
According to ABC, ATO Second Commissioner Geoff Leeper wrote to employees on Friday morning to ask them to be patient and promised more details after the government has explained the budget.
He even defended the budget which Leeper said will build a stronger and more prosperous Australia.
However, Community and Public Sector Union National Secretary Nadine Flood opposed to the planned cutting of ATO staff because of its negative impact on small business and potential to damage service delivery, to help industry and ensure tax revenue is raised.
In 2013, ATO announced 900 jobs would go as a result of an efficiency dividend. In the new round of job cuts, reports said those who would lose their jobs would come from outsourcing, commercial financial services and accounting service.
Besides the ATO, reports said that there will also be cuts in the environment, transport, industry, agriculture and indigenous portfolios, but Education Minister Christopher Pyne said he does not expect job cuts in his ministry because his portfolio had already been split into two between employment and education.
During the campaign, the Coalition promised then that the government would only use natural attrition to reduce the public payroll by 12,000.
Opposition infrastructure spokesman Anthony Albanese criticised the planned axing of public jobs because it would cause the government to lose more money than it would save.
"If you reduced the number of people working in terms on the tax system, ensuring that revenue is collected from people who should be paying it, then you'll reduce the money to the Government," ABC quoted Albanese.
He added, "It's another example of a government cutting off its nose despite its face."