Tony Abbott has flagged Coalition savings of $10 billion which include recently announced cuts to the school kids bonus, reducing the humanitarian refugee in take and public sector job reductions through ''natural attrition''.

In a speech in Sydney on Friday the Opposition Leader said: ''We will trim back the Commonwealth public sector, not because we fail to respect the work of public servants . . . but there's 20,000 more in the Commonwealth public sector than there were five years ago and there hasn't been a commensurate increase in service delivery or efficiency.''

Opposition Leader Tony Abbott has flagged $10 billion in public sector savings. Credit:Alex Ellinghausen

Mr Abbott's office explained that the Coalition had not changed its existing policy of cutting 12,000 public sector jobs through ''natural attrition'' (waiting for public servants to resign and not rehiring). This would save $4 billion, according to a spokesman for the Opposition Leader.

The rest of the $10 billion savings over the forward estimates period would come from binning the school kids bonus ($4.8 billion including administration costs) and $1.3 billion over four years by scrapping Labor's plan to increase the humanitarian intake from 13,750 to 20,000, according to Mr Abbott's office.