Govt tests market for asset sales

The federal budget will reveal what assets the government plans to sell and a new list of agencies to be merged or axed.

The future of major federal government assets which have been scoped for sale will be revealed in next Tuesday's budget.

Last year's budget provided $12 million for scoping studies into Defence Housing Australia, the Royal Australian Mint, Australian Hearing and the Australian Securities and Investments Commission's registry.

The government also added to the list the potential sale of ICON - the intra-government communications network - and commonwealth properties in Canberra's parliamentary triangle.

It is understood decisions on the sale or otherwise of these assets will be unveiled in the budget papers.

The scoping studies looked at the likely sale environment for each business operation, as well as the best method and timing of sales.

Government sources have talked down the prospect of DHA's $10 billion real estate portfolio being sold, mainly because of its complexity but also its political sensitivity.

A DHA spokeswoman said the agency had not been advised of the government's final decision, but expected it to be made clear next Tuesday.

Australian Hearing, set up in 1947, provides hearing health services through a national network of centres and undertakes research through the National Acoustic Laboratories.

A number of private companies have expressed interest in the ASIC registry, which has a reported estimated value of at least $4 billion.

The Abbott government privatised heath insurer Medibank Private in November 2014 for $5.7 billion, the proceeds of which formed part of the 2014/15 budget.

A fourth tranche of government body mergers and abolition - known as "smaller government reforms" - will also be outlined in the budget papers.

The mid-year budget review released in December listed the third tranche: the abolition of 138 government bodies, consolidation of 15 bodies into departments, transfer of two bodies out of the commonwealth and the merger of 26.


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Source: AAP


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