Two senior female ministers have emerged as key losers from Malcolm Turnbull's post-election reshuffle, losing significant aspects of their portfolios as junior conservatives and Nationals MPs are promoted to ease Coalition tensions.
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Mr Turnbull opted for a wider-than expected reshuffle of his frontbench after the lacklustre election result, claiming a mandate for the Coalition's policies and ignoring calls for former prime minister Tony Abbott to return to the frontbench as expected.
Outgoing industry and innovation minister Christopher Pyne will be take on the new role of minister of defence industry, with his responsibility for overseeing the mutli-billion dollar defence and shipbuilding program leading to a significant reduction in responsibilities for Defence Minister Marise Payne.
Kelly O'Dwyer, the assistant treasurer before the reshuffle, will be renamed the minister for revenue and financial services. She has been axed as small business minister, with that portfolio now downgraded out of cabinet and handed to Nationals MP Michael McCormack.
Greg Hunt will move from the environment portfolio to take over Mr Pyne's former role as industry, innovation and science minister.
Mr Turnbull praised Mr Hunt - who was understood to want to shift from the portfolio - as "an outstanding environment minister".
Josh Frydenberg will take on an expanded environment and energy portfolio, and Nationals senator Matt Canavan will join cabinet as minister for resources and Northern Australia.
Paul Fletcher will become minister for urban infrastructure.
Rising conservative senator Zed Seselja will become assistant minister for social services and multicultural affairs.
Mr Turnbull told a press conference at Parliament House on Monday afternoon that his ministers had been chosen on merit.
"I am not going to put conservative or moderate or liberal tags on my colleagues," he said.
He also said budget repair will be a "front of mind issue" for the Parliament.
Other additions to the assistant ministers ranks including Karen Andrews in vocational education, Alex Hawke in immigration, Keith Pitt in trade, investment and tourism, and Craig Laundy in industry.
The frontbench changes were required after two of Mr Turnbull's assistant ministers lost their seats at the election. Tourism minister Richard Colbeck was dropped from the ministry as his Tasmanian senate seat remains in doubt.
