Employment, Skills, Small and Family Business. The Department of Infrastructure, Transport, Regional Development and Communications: a merger of the Department of Infrastructure, Transport, Cities and Regional Development and Department of Communications and the Arts.

The Department of Infrastructure, Transport, Regional Development and Communications: a merger of the Department of Infrastructure, Transport, Cities and Regional Development and Department of Communications and the Arts. The Department known as Services Australia, formerly Human Services, will be established as a new executive agency within the Social Services Department.

Ten departments will remain untouched.

"Having fewer departments will allow us to bust bureaucratic congestion, improve decision making and ultimately deliver better services for the Australian people," Mr Morrison said.

But CPSU national secretary Melissa Donnelly said the creation of "super departments" would not increase efficiency.

"The experiences inand Water Resources who were slated to be relocated to the Department of Infrastructure.

Senior officials were largely in the dark over the overhaul and there are reports secretaries didn't get the chance to provide advice on the proposal.

Staff at the departments being merged are expected to retain their positions.

However, Mr Morrison has flagged further changes could be announced as early as next week.

Sacked public servant returns

Mr Morrison chuckled when he announced Andrew Metcalfe would return to the public service as the new head of the Department of Agriculture, Water and Environment.

Mr Metcalfe was previously the boss of the Department of Agriculture but lost his job when the Coalition came to power in 2013.

"Since then, he has been a partner at EY. He will bring considerable public policy leadership