Australia's foreign aid spend will be more focused and effective with the melding of AusAID into the Department of Foreign Affairs and Trade, according to Foreign Minister Julie Bishop.
The Liberal government has come under fire for effectively scrapping AusAID and cutting the nation's foreign aid program but Ms Bishop says it will result in better outcomes.
"We believe there should only be one foreign agency under a government and we need to ally all of our interests and our effort and our resources," the foreign minister told the annual conference of the West Australian Liberal branch on Saturday.
"I believe we will see a more effective use of aid that will make a difference in the region.
"I don't believe it's acceptable for Australia to continue to pay billions of dollars and billions of dollars each year in aid and for the recipient countries to not meet one of the Millennium Development goals that were set for 2015."
She said Australia's foreign aid budget was still generous, "but focusing on economic empowerment, not hand-outs".
Among the changes to Australia's offshore aid system came an announcement on Saturday from the Department of Foreign Affairs and Trade (DFAT) that offers made for next year's AusAID graduate program have been revoked.
"AusAID was recruiting to manage an $8 billion aid program," a DFAT spokeswoman told Fairfax.
"With the program now reduced to $5 billion, it would not be responsible to proceed with the recruitment of additional staff."
It is unclear how many positions have been lost in the scrapping of the program, which aimed to prepare graduates for a career managing Australia's overseas aid.
The program will continue for those who are already underway while its operation in future years is to be decided.
"I think revoking jobs that have been offered is rough and the cuts we've seen to AUSaid is a real concern," senior Labor MP Richard Marles told reporters on Saturday.
He said there was significant national interest in Australia running an effective overseas aid program.
"We are very concerned about the cuts ... that have been put in place by this government, they are very severe cuts and breach commitments that the coalition made while in opposition," Mr Marles said.
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