The federal government has advised SBS it will no longer proceed with the planned SBS expansion to Western Sydney.
The government indicated its decision had been made in the context of the current fiscal environment.
In an email to staff this evening, acting managing director Jane Palfreyman said: "It is disappointing the initiative will not be progressing, given the opportunities it presented to expand SBS' facilities and content capacity, build on its existing work, tell more stories, and deepen engagement in one of Australia's most diverse and fastest-growing regions."
SBS remains deeply committed to the communities of Western Sydney, Palfreyman said in the email.
She said SBS would continue to strengthen the relationships built over more than 50 years while forging new connections across this dynamic region.
Telling the stories of Western Sydney through news, audio and screen content, and working with communities to recognise and celebrate significant cultural moments will remain central to how SBS delivers its services, Palfreyman said.
A spokesperson for Communications Minister Anika Wells said the federal government would continue to support the "important work" of SBS "now and into the future".
"The Albanese government is proud to have delivered 5-year funding terms to the SBS," the spokesperson said.
"This funding will see more than $1.7 billion invested into our multicultural national broadcaster through to 27/28."
"This funding is complemented by the government's recent commitment to SBS Examines to tackle misinformation and foster social cohesion."
SBS said it was a government decision and would not be providing comment.
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