A 100-year-old Australian government agency is being scrapped and close to 200 staff members offered redundancy.
Parliamentary Secretary to the Treasurer Steven Ciobo said the Australian Valuation Office will cease to provide services from June 30.
"A compelling case for the Commonwealth providing its own valuation services no longer exists, particularly given there is a highly competitive market of private sector providers," Ciobo said in a statement on Friday.
The office has been delivering valuation services exclusively for the government since 1910, but has become unsustainable, with expected losses of up to AU$4 million this financial year.
A further AU$1 million would have been required to bring its IT equipment up to date.
The Australian Taxation Office will work with affected employees and manage the wind-down period for the organisation, with up to 198 staff members to be offered redundancies.