The federal government is set on a collision course with the ABC, suggesting any programming cuts as a result of a $254-million funding reduction would be "cowardly" and fending off accusations the cuts are a broken election promise.
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Communications Minister Malcolm Turnbull said on Wednesday he and Treasurer Joe Hockey had made it "quite clear" there were never any plans to cut on-air or online activities but "if there were to be savings made across the board, the ABC and SBS could not expect to be exempt".
The cuts represent a 4.6 per cent reduction in the ABC's funding, which means it will receive $5.2 billion over five years rather than $5.5 billion.
The SBS will have its operating budget reduced by $25.2 million – or 1.7 per cent – over the same five-year period but will be able to recover some revenue by taking a more "flexible" approach to advertising. If legislation passes Parliament next year, it will be able to run up to ten minutes of advertising in any given hour, so long as it maintains an average of five minutes per hour per hour per day.
Mr Turnbull said the efficiencies represented a "modest saving in comparison to the government's continued investment in national broadcasting of more than $6.6 billion over the same five-year period".
The ABC has previously reported that cuts of this magnitude could lead to the loss of 500 jobs, a scaling back of Lateline, the closure of foreign bureaux and the end of the locally produced state based versions of current affairs flagship 7.30.
ABC and SBS are due to front a Senate committee on Thursday evening, and ABC staff will learn how the broadcaster plans to adjust to the cuts in a national phone hook up with managing director Mark Scott on Monday.
Mr Turnbull denied suggestions programs would have to be cut, saying it would be a "cowardly" decision by the ABC board to find savings by axing programs.
"If the ABC or SBS want to make decision to change or cease programming that is their choice," Mr Turnbull said.
"The savings are not of a level that require any changes to programming."
But in a sign that the Government is anticipating a public backlash against its decision the Education Minister, Christopher Pyne, took to twitter to promote a petition urging the ABC not to shut down operations in his home town of Adelaide.
The managing director of the ABC, Mark Scott, asked staff and the ABC audience for "patience" as the board and executive worked out the broadcaster's final response.
Mr Scott noted the funding cuts would increase over time because there was no allocation for "inevitable redundancies which will need to be covered by the ABC from its current allocation and asset base".
By the end of the five-year period Mr Scott said the funding cut would be closer to 8 per cent.
The opposition accused the government of breaking an election commitment not to cut the ABC's budget.
"It is absolutely clear now that Tony Abbott stared down the barrel of a camera the night before the election and lied to the Australian people," Opposition leader Bill Shorten said.
Mr Turnbull released the nine-page summary of an efficiency review conducted by the former chief financial officer of the Seven Network, Peter Lewis, to back up his decision.
The review found savings could be found by merging "back-of-office functions" of the ABC and SBS such a human resources, legal and business affairs, finance and accounting.
The review also suggested the ABC could raise more revenue by considering charging for some programs - such as archival footage - on its popular iview service.
Mr Turnbull also announced on Wednesday that he would write to the ABC board with suggestions to improve the broadcaster's performance.
In a move that one senior producer referred to as a vote of no confidence in Mark Scott, the Communications Minister will recommend that the position of editor-in-chief is no longer combined with that of managing director.
He will also suggest that the ABC employs a separate chief financial officer.
The managing director of the SBS, Michael Ebeid, said the cuts to his organisation were anticipated but "sizeable" and would "naturally be felt" by the broadcaster.
"National efforts to unify Australia's diverse communities go directly to the reason SBS was established, and it is at a time when our social cohesion is being tested, that having a multicultural broadcaster is more important than ever," he said in a statement.
The union representing ABC employees, the Community and Public Sector Union, said it was "frankly gutless of Malcolm Turnbull to shun responsibility for these cuts and pass the buck to ABC management".
