Australian Prime Minister Julia Gillard has announced her reshuffled cabinet at a press conference in Canberra on Monday.

She emerged victorious from a special caucus meeting last Thursday after Kevin Rudd refused his supporters' calls to again stand for the leadership.

According to her announcement, Anthony Albanese, who retains his current transport and infrastructure minister, is promoted and takes on the critical role of minister for regional development and local government vacated by former minister Simon Crean who was sacked last week. And Tony Bourke, the current minister for environment, will adds arts to his current environment portfolio.

She also announced Gary Gray, Western Australian MP, would join the cabinet as minister for resources and energy, minister for tourism and minister for small business. And Attorney-General Mark Dreyfus takes on new roles of special minister of state and minister for public service and integrity.

As well, Gillard announced the Department of Climate Change will be merged with the Industry Department to become the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.

The merger means that Greg Combet retains his role of minister for climate change, and adds industry and innovation to his portfolio.

Craig Emerson, minister for trade and competitiveness, and minister assisting the prime minister on Asian century policy, will also take on the portfolio of tertiary education, skills, science and research.

And minister for home affairs and justice, Jason Clare has also been elevated to cabinet as a full member and will maintain his current portfolios.

In addition, Jan McLucas is appointed as minister for human services. Don Farrell will also be minister assisting on tourism, and Bernie Ripoll will be parliamentary secretary for small business, both in minister Gray's portfolio.

Andrew Leigh will be parliamentary secretary to the prime minister. Matt Thistlethwaite becomes parliamentary secretary for pacific island affairs and parliamentary secretary for multicultural affairs. Amanda Rishworth becomes parliamentary secretary for sustainability and urban Water.

Three ministers in Australia's cabinet, Minister for Tertiary Education Chris Bowen, Minister for Resources, Energy and Tourism Martin Ferguson and Minister for Human Services Kim Carr, resigned last Friday as a result of the aborted challenge on the ruling party's leadership a day earlier which saw Prime Minister Julia Gillard prevailing over her predecessor Kevin Rudd.

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