"We're probably looking at, we're down to I think about 19,000 at the moment. We think that trajectory, which as I said started in 2012, will probably end at around the 17,000 to 18,000 mark, but that's not taking into account any future decisions made in the Defence white paper in terms of what other capabilities we need and the context of this, of course, is that the government is committed to returning the Defence budget to 2 per cent of GDP and I reiterate that commitment today," Mr Andrews said.

The federal government has accepted 75 of the 76 recommendations made by the Peever Defence review, which will be implemented over the next two years. Credit:Rob Gunstone

A spokesman for the minister subsequently told Fairfax Media the 1650 figure was correct. That figure does not appear anywhere in the report.

The "first principles" review is the most thoroughin four decades and calls for a restructure of the department to cut waste and simplify processes. To address concerns Defence is too top-heavy, one three-star general position will be abolished, along with six senior executive service positions in the upper reaches of the public service.

There are currently seven three star generals in Defence, up from four in 1998, while the number of senior executives has ballooned from 87 to 174 in the same period.