Mr Morrison will slash the number of departments from 18 to 14 in an effort to cut red tape and improve services.
As a result, five department heads will lose their jobs.
“Having fewer departments will allow us to bust bureaucratic congestion,” he told reporters in Canberra today.
“This is about getting better services on the ground.”
Four new mega departments will be created early next year:
• Education, Skills and Employment
• Agriculture, Water and the Environment
• Industry, Science, Energy and Resources
• Infrastructure, Transport, Regional Development and Communications.
The changes will come into effect on February 1.
There will be no reshuffle to ministerial responsibilities.
Mr Morrison said the move wasn’t being made to save money.
“This has not been done as a saving measure, this has been done as a structural issue,” he said.
Labor deputy leader Richard Marles urged the Prime Minister to tread carefully.
“Obviously the public service has a very significant role to play and there needs to be stability within the public service,” Mr Marles told Sky News.
“I think it’s really important — particularly at this time, given all the challenges that we’re facing — that the government is managing the public service in a way which maintains stability and ultimately maintains morale.”
Earlier this year, the Prime Minister said the public service needed to “evolve” and in some cases “conventional wisdom needs to be challenged”.
He also called for “congestion-busting” to encourage new ideas on how to improve services.
— with AAP