The federal budget papers released on Tuesday say business cases for government agencies and departments being considered for relocation are due to be completed by December.
Shifting public servants out of Canberra has been controversial in recent years, with Labor questioning the move of the Australian Pesticides and Veterinary Medicines Authority to Armidale in Deputy Prime Minister Barnaby Joyce's northern NSW electorate.
The budget papers says "non-policy commonwealth entities" are being considered to be moved, but did not specify the agencies.
The proportion of public servants working outside Canberra has increased from 61.5 per cent in 2013 to 62.5 per cent in 2016.
Public service efficiencies have delivered about $7.6 billion in savings, as the number of staff has fallen from a peak of 182,505 in 2011/12 to an expected 167,064 in 2017/18.
However the government is now comfortable with the figure sitting around 167,000.
"The rationalisation phase of the smaller government agenda is now largely complete," the budget papers say.
Better use of online services and streamlining of functions is expected to deliver $14 billion in savings over the period 2021/22 to 2026/27.
The government also has in mind selling more surplus properties, which have reaped $68 million since May 2014.
About $300 million in savings are expected by requiring agencies to fill vacant leased office space.
