Managers have emailed staff to outline the "amalgamation" which would see staff at the Cattley Street offices moved to the Marine Terrace Centrelink site as part of a refurbishment.

Services Australia has confirmed there will be "no job losses" as a result, and that services to customers will not change.

There was no response to a question regarding whether the Cattley Street offices would be retained by the public service.

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The Community and Public Sector Union is urging the federal government to retain the offices to be used for other permanent public sector positions in Burnie.

The amount of labour hire used by the Australian public service - including in Centrelink call centres - has been the focus of much scrutiny in Senate hearings during the current term of government.

CPSU Tasmania regional secretary Zac Batchelor said these hearings had shown than hiring permanent government staff was just as cost-effective as using labour hire, and resulted in better services and more secure employment.

He said some of the 20,000 labour hire positions could be turned into permanent positions in Burnie.

"We're saying the government should relocate permanent jobs. It could be ATO, it could be Services Australia, it could be the NDIA, all of those departments have the capacity to have remote teams," Mr Batchelor said.

"The ATO is the one that makes the most sense because it already has a footprint in Burnie.

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"If we can get another 50 or 60 ATO jobs, it becomes a hub and it's a place where you can build a career. If you give someone a full-time job on $70,000 a year, you can build loyalty. If you pay someone that in Sydney, they'll quickly move to the private sector."

Launceston and the North-West are significantly under-represented for Australian Public Service jobs in Tasmania, at 8.1 per cent and 7 per cent respectively, with the remainder in Hobart.

Since 2013, the number of federal public service jobs in Tasmania has decreased by 10.7 per cent.

Services Australia general manager Hank Jongen said the Burnie changes were designed to "meet the needs of staff and customers".

"As part of this change, the Burnie Service Centre will be upgraded and modernised, making it easier for customers to access the services they need," he said.

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