Who's my new boss? Everything you need to know as Albanese reveals 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 that 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 that'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 has had to grapple with the largest Labor caucus since Federation.

"A caucus brimming with capacity, talent and energy in both the House of Representatives and the Senate," the Prime Minister said.

With this achievement for the Prime Minister comes a headache in how to allocate a limited number of portfolios.

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 moved to the federal level and retained the 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.

Victorian Senator Jess Walsh will move from the backbench into the position of Minister for Early Childhood Education and Minister for Youth.

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.

While the demotion of Ed Husic and Mark Dreyfus has drawn most of the attention, other junior ministers have also been moved down the pecking order.

Victorian MP Kate Thwaites moves from Assistant Minister for Social Security, Ageing and Women to Special Envoy for Climate Change Adaptation and Resilience, and former Assistant Foreign Affairs Minister Tim Watts moves to Special Envoy for the Indian Ocean.

The position of special envoy for social cohesion has been axed, with Peter Khalil promoted to Assistant Defence Minister.

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.