Moderating inflation, boosting renewable energy and looking after vulnerable Australians form the basis of Anthony Albanese’s election pitch as his new ministry meets for the first time.

The second Albanese ministry was sworn in by the governor-general on Monday before it met for the first time at Parliament House.

Going two years into the first term without a reshuffle was a testament to stability, Mr Albanese said.

“That’s a credit to the work that everyone did here, but with ministers stepping back, obviously there always needs to be some changes as a result of that,” he said.

“That’s been done … in a way that reflects well on the stability of our government.”

The reshuffle was spurred by cabinet ministers Linda Burney and Brendan O’Connor announcing they wouldn’t recontest the next election while assistant minister Carol Brown stepped back because of health reasons.

“I thank those three for this service and look forward to getting on with the agenda,” the prime minister told his cabinet on Monday.

Malarndirri McCarthy has become the second Indigenous woman to hold the Indigenous Australians portfolio after direct predecessor Ms Burney.

Pat Conroy has also jumped into cabinet but retained his defence industry and Pacific portfolios.

Jenny McAllister is the new emergency management minister after she was promoted to the outer ministry.

Clare O’Neil and Andrew Giles had their home affairs and immigration portfolios stripped and given to Tony Burke in the reshuffle.

Mr Burke’s employment and workplace relations portfolio has gone to Murray Watt, whose agriculture portfolio has moved to Julie Collins.

Ms O’Neil has become the new housing and homelessness minister and remained in cabinet while Mr Giles was sworn in as the skills minister after it was dropped into the outer ministry.

Deputy Liberal leader Sussan Ley criticised the changes, saying the wider reshuffle was touted as replacing retiring ministers.

“Anthony Albanese has had to change half his team … that’s a huge concession the government’s failing to deliver,” she told ABC radio.

Ms Ley chastised the dropping of the skills portfolio out of cabinet and being given to Mr Giles, saying it was too important to be a “consolation prize” after he was dumped from immigration.

“The heavy hitting and the decisions are made around the cabinet table, if you’re not sitting at that table, then you don’t get to have a say,” he said.

Mr Albanese denied moving his home affairs and immigration ministers equated to a political scalping as the opposition claimed they were dumped for incompetence, saying filling cabinet spots had “a knock-on effect”.

Senior ministers came to the defence of Ms O’Neil, saying the shuffle wasn’t an admission of failure.

“Not at all, what we’re doing is with Clare O’Neil moving to housing after the good work she’s done in cyber security,” cabinet minister Bill Shorten told Seven’s Sunrise.

Ms O’Neil is seen internally as a strong bet to match the Greens’ Max Chandler-Mather in the fight over housing policy.

Kate Thwaites, Josh Wilson and Julian Hill have been promoted to the assistant ministry and three special envoys have been appointed.

Peter Khalil, the new envoy for social cohesion, vowed to work on a way to strengthen Australia’s multiculturalism as community tensions simmer.

“It’s important to be able to work on those challenges and address them and enhance our democracy,” he told ABC radio.

Mr Albanese called for more social cohesion as deep divisions spark community tensions.

“We do not want to go down the road that we’ve seen some other democracies go with intense polarisation and division in this country,” he said.

Dominic Giannini
(Australian Associated Press)