The Federal Government will cut the funding of the ABC and SBS by 1 per cent as well as cancel the ABC’s contract to run Australia Network, as a result of this year’s budget.

The Government expects to save $43.5 million over four years from cuts to the base funding of the ABC and SBS.

However, in a message to staff, ABC managing director Mark Scott says the cut to the ABC is likely to be about $120 million over four years, with more to come, resulting in redundancies and reductions in services.

The decisions to axe the ABC’s $220 million, 10-year contract with the Department of Foreign Affairs and Trade (DFAT) to run the Asia Pacific television service, Australia Network, which broadcasts to 46 Asia Pacific countries, was widely expected.

The communications minister, Malcolm Turnbull, has described the cuts to the ABC and fellow public broadcaster SBS as ‘a down-payment on back-office savings identified and being considered by the government and the public broadcasters over the coming months’.

Community radio and subsequently ethnic community radio on the other hand, have been spared potentially crippling funding cuts as the budget rejected recommendations to abolish the sector’s funding.