Almost 500 protective service officers were told they are potentially ''excess to requirements'' on Monday, as Defence pushes ahead with plans to downgrade security at some Australian bases.
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Australian Federal Police protective service officers are being removed from Defence facilities across the country, including the officer training college at Duntroon.
The Defence Department says the officers are no longer needed because the threat against military institutions in Australia has recently diminished.
That risk assessment is based on intelligence from national and state security and policing agencies.
But the Australian Federal Police Association, which represents the officers, says it is purely a cost-cutting exercise that the department has embarked on as it tries to deal with funding pressures.
On Monday, about 480 protective service officers received a letter from the AFP telling them they were potentially ''excess to the AFP's requirements'', and offering them counselling and support.
''I understand the contents of this letter might cause some concern for some individuals,'' the letter read.
About 110 of the 480 officers are expected to be cut, although they have been given the option of applying to become sworn police, or redeploying to unsworn or vacant protection roles.
The AFP was legally obliged to send the letter to all 480 staff who could potentially be deemed as excess, despite less than a quarter of that number expected to be axed.
AFPA chief executive Dennis Gellatly said the letter had contributed to high levels of stress and anxiety.
''It does cause a lot of anxiety, because those who want to remain [protective service officers] are left hanging in the breeze for a while, not knowing whether or not they're going to have a position at the end.''
Mr Gellatly said claims that the cuts were not motivated by a savings drive were ''patently untrue''.
''It's not core defence business, it's security of defence establishments, and they are looking to save through that measure rather than taking it out of front-line defence.''
The gaps resulting from cuts are expected to be filled by security guards and private security firms.
But the AFPA fears private security guards will provide a substantially inferior service. Mr Gellatly also believes Defence will eventually go ''full-circle'' and realise they need the officers back.
Officers have been given 14 days to raise any issues about potentially being deemed in excess of requirements. The AFP will then begin notifying selected officers whether they are needed.
People who want a voluntary redundancy can seek it immediately.