United Future leader Peter Dunne says a new model for the Families Commission will refocus it on understanding what families need and what they face.
The restructure of the agency, which Mr Dunne initiated, was announced last year and confirmed by the Government on Monday.
It says the move will enable the commission to take on a new role providing for independent monitoring, evaluation and research to measure the effectiveness of initiatives for families and society.
The number of Family Commissioners will be cut from seven to one.
Of the $32.48 million in funding the commission receives over four years, the Government will reprioritise a minimum of $14.2 million to establish an evaluation and research unit.
Some $4 million will be redirected to fund extra parenting programmes and relationship education in schools and the Prime Minister's Youth Mental Health programme.
Peter Dunne says the commission lost its way early on under Labour administrations that milk-sopped it into a politically correct institution.