Rudd announces cabinet reshuffle

The federal ministry reshuffle underlines the government's commitment to nation building and national security, Prime Minister Kevin Rudd says.

Former union leader Greg Combet and senator Mark Arbib are the big winners under a new look front bench announced by Mr Rudd on Saturday.

However, Home Affairs Minister Bob Debus and Parliamentary Secretary for Health and Ageing, Jan McLucas, are no longer part of the ministry.

The reshuffle comes after the resignation of Joel Fitzgibbon from the defence portfolio this week and the promotion of John Faulkner as his replacement.

"This reshuffle underlines the government's continued commitment to its core priorities (including) nation building for recovery ... and getting on with the task of strengthening Australia's security," Mr Rudd told reporters in Brisbane.

It "followed logically" after Mr Fitzgibbon's resignation and Mr Debus' decision not to run at the next election that all changes be "made together", he said.

Mr Debus won't re-contest his NSW-based seat of Macquarie at the next election, meaning he will retire after nearly 28 years in NSW and federal politics.

Brendan O'Connor will take on Mr Debus' portfolio of home affairs, and will have responsibility for policing and law enforcement and the administration of Australian territories.

Greg Combet becomes Minister for Defence Personnel, Materiel and Science and Minister Assisting the Minister for Climate Change.

Chris Bowen is promoted to Minister for Financial Services, Superannuation and Corporate Law, as well as Minister for Human Services, replacing Joe Ludwig who takes over Senator Faulkner's responsibilities as Special Minister of State and cabinet secretary.

Senator Ludwig will remain in his role as the Manager of Government Business in the Senate.

Senator Arbib becomes Minister for Employment Participation and Minister Assisting the Prime Minister on Government Service Delivery.

Other changes to the Labor front bench include Senator Nick Sherry's appointment as Assistant Treasurer, while Kate Ellis takes on the role of Minister for Early Childhood Education, Childcare and Youth, in addition to her Sport portfolio.

Dr Craig Emerson, currently Minister for Small Business, Independent Contractors and the Service Economy and Minister Assisting the Finance Minister on Deregulation, will also take on Chris Bowen's responsibilities as Minister for Competition Policy and Consumer Affairs.

Warren Snowdon becomes Minister for Indigenous Health, Rural and Regional Health and Regional Services Delivery.

Maxine McKew will be Parliamentary Secretary for Infrastructure, Transport, Regional Development and Local Government.

Gary Gray has been appointed Parliamentary Secretary for Western and Northern Australia and Jason Clare will be Parliamentary Secretary for Employment.

Mark Butler is to become Parliamentary Secretary for Health, while Richard Marles will be Parliamentary Secretary for Industry and Innovation.

It is the second time Mr Rudd has handpicked his ministry, following the 2007 election where he became the first prime minister to choose ministers without deliberations from the ALP caucus.

Mr Rudd said he changed the rules for the first time in 100 years.

"These decisions are mine and they are final and they are reflective of the talent of the individuals concerned," Mr Rudd said.

Senator Ludwig said it was a privilege to be offered "this position of trust at the centre of government".

"I intend to reach out to all parties to continue Senator Faulkner's important work on electoral reform and reform of information law, including Freedom of Information, across government," he said in a statement.

"My other priority will be in improving coordination across government and enhancing the administrative operation of cabinet."