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Public service overseas allowances cuts to hit 25 departments

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A crackdown on perks for Australian diplomats and public servants posted overseas will hit 25 of the largest government departments including the Tax Office, Treasury and Prime Minister and Cabinet.

Information provided to Senate budget estimates hearings shows the full list of agencies affected by the Department of Foreign Affairs and Trade review of overseas allowances includes intelligence agencies ASIO, Australian Secret Intelligence Service and the Office of National Assessments as well as Austrade, the CSIRO and the Australian Transport Safety Bureau.

Announced in last month's federal budget, the review will see cuts to DFAT staff allowances raise $21 million of the savings, alongside a further $13.5 million in savings from Defence Department and $5.3 million from immigration, bringing savings of $37 million over four years.

Departments included in the crackdown include Attorney-General's, Agriculture, Education, Immigration and Border Protection, Industry, Infrastructure and Environment.

The Australian Maritime Safety Authority, Australian Nuclear Science and Technology Organisation, Office of Financial Management, Australian Transaction Reports and Analysis Centre and Australian National Audit Office will also have allowances reviewed.

Diplomats will lose long-standing perks including cable television, financial advice and some clothing items, with the changes part of federal government moves to bring entitlements into line with community expectations.

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Some payments for household maintenance and child reunion supplements will also be abolished.

The review was sparked in part by controversy from revelations that taxpayers spent $215,000 for 23 officials to travel to Paris for a conference on how to save money.

DFAT boss Frances Adamson told estimates hearings diplomats serving in less dangerous cities will lose a hardship allowance graded by the liveability of their posting location, while the government will apply limits to a cost of posting allowance expected to provide a bulk of the savings.

The department will grandfather the former allowance system for staff posted before cuts were made.

Estimates was told changes for staff from four departments and agencies delivering overseas official development assistance would not impact the budget.

The budget said standardised overseas allowances for Australian government employees would ensure appropriate conditions of service for the pursuit of Australia's interests internationally, while delivering "more balanced, fair and consistent package of remuneration across agencies."

The cost of the changes measure are being met from existing budget allocations to the Foreign Affairs and Trade portfolio, with savings helping the budget bottom line.

The largest share of the changes, worth $16.8 million, is due in the 2020-21 financial year.

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