The Abbott government's cost-cutting review of the ABC envisages a radical shake-up that would lead to the outsourcing of most television programs, including flagship shows such as Play School and At the Movies, to the private sector and a further centralisation of operations in Sydney.

Fairfax Media has been briefed on the confidential report and can reveal it has estimated the ABC would save a net $70 million by outsourcing all television production to the private sector. On top of $90 million reaped by selling off production facilities, the proposal would save $400,000 each year. Implementation costs would be $20 million.

Tipped for external production: ABC's Play School.

There is ''significant scope'' for savings by increasing the use of external production studios rather than filming television programs internally, the efficiency review finds.