Prime Minister Anthony Albanese announces major cabinet reshuffle

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Prime Minister Anthony Albanese has announced a major front-bench shake-up, which will see Tony Burke become Home Affairs and Immigration Minister among a raft of other changes.

The cabinet reshuffle has been spurred by the retirement of two ministers – Brendan O'Connor, Linda Burney, as well as Carol Brown's announcement that she will step back as an assistant minister to prioritise her health.

Albanese fronted media this afternoon to announce the overhaul.

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"I'm very proud now that we have gone two years and two months with precisely the same team in place," he said.

The new cabinet will see Clare O'Neil taken off the Home Affairs and Cyber Security portfolios and instead made Housing and Homelessness Minister.

Tony Burke will be made Minister for Home Affairs and Minister for Cyber Security, and will also take on Andrew Giles' former role of Minister for Immigration and Multicultural Affairs.

He will continue to be Minister for the Arts and Leader of the House.

"Tony of course is a senior minister, who has been focused on a range of portfolios and has done a great job in employment and workplace relations," Albanese said.

"He has held similar portfolios in the past, and he is someone who will bring that experience to what remains a challenging portfolio."

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Home Affairs Minister Clare O'Neil says that the Australian economy has entered a "recovery phase" after the massive global IT outage.

Giles will now serve as Skills and Training Minister, with the portfolio having been dropped from cabinet.

Albanese was tight-lipped when asked why Giles was moved from the Immigration and Multicultural Affairs portfolio.

"Because there is a reshuffle," he said.

"What you do when there is a reshuffle is that there is a change that then has a knock-on effect."

Senator Murray Watt, who was previously Agriculture Minister, will become Minister for Employment and Workplace Relations, with another minister taking over.

"Julie Collins, having done an outstanding job as Housing Minister, will move to the Minister for Agriculture, Fisheries and Forestry, while retaining Minister for Small Business," the PM announced.

Pat Conroy will be Defence Industry Minister, moving into cabinet, and International Development and the Pacific Minister.

Senator Malarndirri McCarthy, who previously served as Indigenous Australians Assistant Minister has been promoted from the outer ministry to sit in cabinet.

Senator Jenny McAllister will also be moved up to the ministry to be as Cities and Emergency Management Minister.

Albanese will recommend to the Governor-General that new members of the ministry be sworn in tomorrow.