Veterans Affairs to move to new office

The Department of Veterans Affairs headquarters in Canberra is moving out of its home of 40 years, achieving long-term savings of $84 million.

The shift from the southern suburb of Woden to a building that houses the Australian Taxation Office in the city's centre is expected to start in June 2016.

Veterans Affairs Minister Michael Ronaldson said remaining at Woden would have required an extensive - and expensive - refurbishment.

Under new arrangements, the department will take over already-leased modern office space.

The Woden building towers over neighbouring buildings and strongly reflects the morning sun.

That's led some staff to colourfully refer to it as Mordor, after the dark lord's lair in Lord of the Rings.