Albo's winners and losers: prime minister reveals his new ministry

Michelle Rowland will be the nation's chief law officer after Attorney-General Mark Dreyfus was dumped from cabinet in factional horse-trading.

Senator Murray Watt steps into the challenging Environment ministry, an area the PM is looking for a "fixer" on contentious laws to set up a federal EPA and reform environmental laws.

"I regard the environment as a really central portfolio," Mr Albanese said during a press conference announcing the new-look line up.

"I regard it as very much a senior role and Murray will do it very well."

Former Environment Minister Tanya Plibersek has also been moved into a new role, taking on the Social Services portfolio.

There has been ongoing speculation about a strained relationship between the Prime Minister and his factional rival, however Mr Albanese sought to play down any sense the move was a demotion, saying Ms Plibersek was "very positive about the portfolio".

Senator Tim Ayres will step into the Industry portfolio, critical for the government's Future Made in Australia ambitions, replacing Ed Husic.

Mark Butler will take on the NDIS portfolio in addition to the Health ministry.

As indicated during the campaign, Deputy Prime Minister Richard Marles retains the Defence portfolio, Jim Chalmers will continue to oversee Treasury and ACT Senator Katy Gallagher holds on to Finance, the Public Service and Women and Government Services. Penny Wong will remain as Foreign Minister.

Amanda Rishworth will move into Employment and Workplace Relations.

Western Australian MP Anne Aly joins the cabinet as Minister for Small Business, International Development and Multicultural Affairs.

Victorian MPs Sam Rae and Daniel Mulino are newcomers to the outer ministry after Labor's factional jostling.

Mr Rae has been given the Aged Care and Seniors portfolio, while Mr Mulino will be Assistant Treasurer as well as the Minister for Financial Services.

The reshuffle has not all been smooth sailing, with Mr Husic dumping on Mr Marles on the weekend.

Mr Husic, who was the first Australian minister to be sworn in on the Quran, savaged Mr Marles on Sunday saying the Deputy Prime Minister was a "factional assassin" rather than a statesman.

Mr Husic said his advocacy on Gaza at the cabinet table was a factor in his departure and said the government had been shackled by timidity in its first term.

"You can't celebrate diversity and then expect it to sit in a corner," Mr Husic said.

Mr Albanese said he had a "constructive discussion" with caucus members on Monday morning.

"What I've done is to allocate portfolios, that's the system taht's there, it's one that Ed and others have supported for a long period."

Mr Dreyfus has kept a low profile since his demotion was announced and there is speculation that the 68-year-old may retire, which would trigger a byelection in his safe Melbourne seat of Isaacs.

Amid a broad spread of competing demands for the re-elected Albanese government, the Prime Minister said he expects to see immediate action in a number of priority areas.

These include the aforementioned environmental reforms, as well as cuts to HECS debt and improving access to early childhood education.

In addition to Sam Rae and Daniel Mulino, some of the other winners in the refreshed cabinet include Andrew Charlton who takes on the role of Cabinet Secretary as well as moving from a special envoy to assistant minister.

Former Tasmanian opposition leader Rebecca White, who retained the federal seat of Lyons at this election for Labor after the former MP retired, will move straight into the role of Assistant Minister for Health and Aged Care, Indigenous Health and Women.

Hunter MP Dan Repacholi will take on the newly created role of Special Envoy for Men's Health, with new special envoys for Social Housing and Homelessness, Josh Burns and Remote Communities, Marion Scrymgour.

With the cabinet to be formally sworn in on Tuesday, major changes at the top of each department are not expected, apart from the replacement of Prime Minister and Cabinet secretary Glyn Davis.

Treasury secretary Steven Kennedy and Finance secretary Jenny Wilkinson have been touted as being frontrunners for the role, however the position could also go to an outsider, quelling ambitions from other secretaries to be in the top role.