The Tax Office is cutting jobs just weeks after receiving a funding boost.

The agency has launched a rapid round of voluntary redundancies, to be finished by June.

Between 140 and 170 people will leave the Australian Taxation Office's client engagement group.

The cuts come after the federal budget injected more money into the Tax Office's compliance work.

ATO second commissioner Jeremy Hirschhorn the agency would accept expressions of interest and offer voluntary redundancies to client engagement group public servants.

“The specific number we will offer will depend on the level of interest, affordability, locations and capability, balanced against our need to continue to deliver business outcomes,” he said.

“Employees who do not express interest in a [voluntary redundancy] will continue in their current role, in their current location.”

Australian Services Union official Jeff Lapidos said the cuts are a “ghastly decision” that would cost $2.5 million more in pay-outs that the ATO has suggested.