The ABC and SBS are exploring options for the multicultural broadcaster to abandon its stand-alone studios and offices and move into the ABC's Melbourne headquarters.
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The move would result in SBS vacating its flagship premises at Federation Square, which it has occupied for more than a decade, and share space with the ABC in a new five-storey production centre at Southbank.
Giving up its Federation Square lease would free up funds for SBS to spend on new programs and services, but would prove controversial internally because of concerns about undermining the broadcaster's unique identity.
It would also leave a sizeable hole to be filled at Federation Square, which has cemented a reputation as a cultural hub by housing SBS, the National Gallery of Victoria and the Australian Centre for the Moving Image.
Shared ABC and SBS facilities was a key recommendation of the Abbott government's efficiency review of the two broadcasters.
SBS's Federation Square headquarters, which includes television and digital radio studios, was opened with much fanfare in 2003 to house its 160 Melbourne staff. The ABC is building a $176 million headquarters, including a TV production centre, next to its existing Southbank offices to replace the historic studios at Elsternwick.
Fairfax Media understands the ABC is willing to configure its new premises to house SBS's Melbourne staff and believes sufficient space could be found.
The two broadcasters would be likely to share studio facilities, cameras, equipment and other back-office functions for the first time.
One option, favoured by the government, is for the ABC to rent the space to SBS at a peppercorn rate to show the broadcaster's commitment to saving taxpayer money.
The move would be a coup for Communications Minister Malcolm Turnbull, who has repeatedly said the government's efficiency review would encourage the broadcasters to take tough decisions they would otherwise have avoided.
Negotiations are said to be in a formative stage. Both broadcasters are bracing themselves for deeper cuts later this year after a combined $43.5 million base-funding cut in the May budget.
ABC managing director Mark Scott said last week: "We are working with SBS to see if, by working more closely together, we can make backroom savings while remaining independent editorially."
Earlier this year former prime minister Malcolm Fraser, whose government established SBS, said if SBS had to move in with the ABC then the ABC would swamp it.
