THE Federal Government has extended its master media account for the next six months after an overhaul of the rules governing political advertising announced last night.

Universal McCann's contract to buy media for federal information and advertising campaigns expired on Monday but had been extended until at least the end of the calender year, Government sources said. The media agency that handles the placement of classified and recruitment, tender and public announcement advertising, HMA Blaze, has also had its contract extended by a similar period of time.

New rules were announced yesterday in effect depoliticising government advertising, in line with a Labor election promise. Any campaign worth more than $250,000 in media spending would be scrutinised by the Auditor-General to ensure it is "free from partisan promotion of government policy and political argument", said the Special Minister for State, Senator John Faulkner.

The regulations were introduced after record spending on advertising - more than $2 billion over a decade - by the Howard government.

Senator Faulkner was unwilling to speculate on whether budgets had been cut, only saying there had already been a "significant reduction". All ads must now be directly related to the Government's responsibilities and only policies or programs "underpinned by legislation" or to be implemented during the current Parliament will qualify, according to the guidelines.

Guidance for government departments on putting together a campaign, from drawing up a shortlist of ad agencies to how to book media, will be handled by the Department of Finance and Deregulation.

Universal McCann's managing director, Henry Tajer, and the head of HMA Blaze, Peter Sharpe, confirmed their contracts had been extended.