The decision to move his politically embattled home affairs and immigration ministers has been defended by Prime Minister Anthony Albanese as he prepares to swear in a fresh frontbench.
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Clare O'Neil has been dumped from home affairs and moved to housing and homelessness - but remains in cabinet - while Andrew Giles was sacked as immigration minister.
He has been given the skills portfolio in the outer ministry.
Mr Albanese defended his ministers despite moving them on following a political headache for the government over the handling of a High Court ruling that released more than 150 former detainees.
The coalition called for heads to roll over the handling of the saga and argued more should have been done to keep the detainees locked up despite the highest court ruling indefinite detention was illegal.
Opposition home affairs spokesman James Paterson said moving the two ministers was "an admission of failure".
Asked if the pair's reassignment amounted to a political scalping, Mr Albanese said it was "because there is a reshuffle".
Ministers stepping down from politics meant others had the chance to step up, he said.
"There's a change that then has a knock-on effect," he told reporters in Canberra on Sunday.
"(Opposition Leader) Peter Dutton has been pretending there wasn't a High Court decision - there was a High Court decision ... which would have taken place regardless of who was in government."
Tony Burke will take up home affairs, cyber security and immigration - with the latter elevated into cabinet from the outer ministry - while retaining the arts portfolio and remaining leader of the house.
"He is certainly up for it," Mr Albanese touted of the increased workload, saying a single person in charge of home affairs and immigration was the appropriate structure.
Intelligence agency ASIO will also be moved from the home affairs portfolio to sit under the attorney-general alongside the Australian Federal Police.
Murray Watt will move on from agriculture to take up Mr Burke's old portfolio of employment and workplace relations.
Julie Collins will become agriculture minister, moving back to the portfolio she held in opposition.
Malarndirri McCarthy has been elevated to cabinet and will take on the Indigenous Australians portfolio, becoming only the second Indigenous woman to do so after direct predecessor Linda Burney.
Pat Conroy will also join cabinet and keep his defence industry and Pacific portfolios.
Jenny McAllister has been promoted into the outer ministry, picking up the cities and emergency management portfolios after serving as an assistant minister.
Kate Thwaites, Julian Hill and Josh Wilson have been elevated into the assistant ministry.
Matt Thistlethwaite will become the assistant minister for immigration with his former position as the assistant minister for a republic scrapped altogether after Labor shelved plans to hold a referendum next term.
Peter Khalil will become special envoy for social cohesion and report directly to the prime minister.
Luke Gosling and Andrew Charlton have also been named special envoys.
Mr Albanese defended the titles, saying the difference between an envoy and assistant minister was the former was not part of the executive and did not make decisions.
"What I have done with the envoy positions is put in place people who can give thought to things that might not lead to an immediate policy decision," he said.
The reshuffle was spurred by the retirement of cabinet ministers Ms Burney and Brendan O'Connor, who won't contest the next election, while assistant minister Carol Brown also stepped back from her role due to health reasons.
The ministry will be sworn in on Monday before the new cabinet meets for the first time.
Australian Associated Press
