The Coalition government in Australia is aiming to save nearly $A500 million by axing several Commonwealth agencies.
The changes are part of the Australian budget, which is being announced on Tuesday.
The ABC says it understands parts of seven national, cultural institutions will be merged while the Royal Australian Mint and Defence Housing Australia could be privatised, as the Coalition moves to reduce the size of government.
It also understands the government is poised to freeze funding or lower the indexation of more than 200 spending programmes.
Thousands of public servants are expected to lose their jobs.