Public service redundancies.

Looming cuts at the Australian Valuation Office will come on top of 900 job cuts at the ATO. Photo: Erin Jonasson

The wave of redundancies sweeping the Australian Public Service will hit the Australian Valuation Office next, with public servants at the ''fee for service'' operation warned that job cuts are imminent.

The AVO operates as a commercial business of the Australian Taxation Office and provides valuation services to federal government agencies and departments.

The looming cuts to the 190-strong workforce will come on top of the 900 job cuts at the ATO revealed in The Canberra Times last week.

AVO workers have been told by their boss, Kath Quigley, that business from the office's major client, the Department of Human Services, which runs Centrelink and the Child Support Agency, had dried up and revenue was ''lower than forecast''.

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The office's valuers work on determining the value of property assets of welfare and pension claimants and Ms Quigley said she hoped to be able to resurrect the income stream from the giant department.

''Although we are still working on what we may be able to provide DHS in the future, in preparation for this change in work type and reduction in work and to work towards preventing an excess employee situation, I am seeking your expressions of interest for possible redeployment or voluntary redundancy,'' Ms Quigley wrote.

It is not known how many redundancies are to be offered but it is understood that the office faces a $4 million budget deficit, which it intends to fund through its cash reserves.

Meanwhile, Tax Office boss Chris Jordan says that the office needs to be more like its Singapore and New Zealand counterparts if is to achieve the streamlined shape it needs.

The 25,000-strong department faces the prospect of mass redundancies as it looks to shed 900 of its workers in the next seven months.

But, in a message to all hit workers sent out on Monday, the Taxation Commissioner said he was hoping to make many of the job cuts by moving public servants around within the department.

The estimated reduction of up to 900 employees by the end of the financial year will be achieved by natural attrition, transfers and potentially some voluntary redundancies.

''Of course our priority will be to redeploy staff wherever possible,'' the commissioner wrote.

Mr Jordan said the office's ''resource forum'' would be looking at ways to bring the budget under control.

''We are continuing to look at ways to balance our budget for 2013-14 and position the ATO for future years,'' he said. ''I have asked the resource forum to report to the ATO executive in December.''

The commissioner told his workers that overseas tax offices had much to teach Australia about how to ''reinvent'' tax collection operations.

''The head of the Inland Revenue Authority of Singapore recently shared with me his draft strategic plan and they too are focusing on excellent service, reduced compliance costs, digital by default and working in partnership with taxpayers,'' Mr Jordan wrote.

''Hearing about their strategies and how advanced they are made me realise the urgency with which we need to embrace change.''