Labor’s Cabinet reshuffle: Murray Watt’s elevation to Plibersek’s portfolio is PM’s statement of intent

After being handed the most emphatic win in Labor’s history, Prime Minister Anthony Albanese made his second-term priorities clear on Monday.

He wants the next three years to be broadly more of the same, having repeatedly stressed the need for stability, but with a few changes to the frontbench necessary for his second-term agenda.

Moving Murray Watt to the beleaguered environment portfolio — where Tanya Plibersek struggled to secure a pathway for the controversial Nature Positive legislation — is a declaration of intent.

Senator Watt has proven himself a successful minister. He was Emergency Services Minister during the 2022 floods, and he transitioned into the sensitive Industrial Relations portfolio as Labor was turfing out the CFMEU.

Hailing from the resource-rich state of Queensland, Senator Watt is widely regarded as a pragmatist — a skill which will be required if he is to keep business and industry, especially in WA, on side as he traverses a passage through the Senate.

“I’m looking forward to working closely again with the environmental, farming, mining, tourism, traditional owner and other business groups,” he said.

Moving Ms Plibersek from Environment to Social Services isn’t a demotion or a promotion, it’s more a step sideways for the PM’s factional foe. But Mr Albanese heavily intimated on Monday that this rejig was necessary.

“I regard the environment as a really central portfolio. It is the only one I have ever asked for in this building and I regard it as very much a senior role in a Labor Government. Murray will do it very well,” he said.

“I think we have got the right people in the right places.”

Mark Butler has added the National Disability Insurance Scheme to his already hefty Health responsibilities.

A close confidant of Mr Albanese, Mr Butler is considered one of the most competent ministers in the Government and will continue Bill Shorten’s Herculean task of bringing the $50 billion-a-year scheme under control.

In replacing ousted Attorney-General Mark Dreyfus, Mr Albanese’s appointment of Michelle Rowland was viewed as the most logical.

Annika Wells will take the Communications portfolio, as well as remaining as Sports Minister.

Given Labor has kicked a response to the landmark Murphy Review, which called for a total gambling ban, into its second term, having one person look after both portfolios has raised a few eyebrows.

Mr Albanese sought to see those off on Monday, saying sport would be moved out of the Health department to Infrastructure, which also houses communication.

As for what that means about the status of the review, Mr Albanese says the work will “continue”.

Most of the heavy hitters retain their positions: Richard Marles, Penny Wong, Jim Chalmers, Katy Gallagher, Don Farrell, Chris Bowen, Tony Burke, Jason Clare, and Clare O’Neil. So do Pat Conroy, Madeleine King and Catherine King. Keeping them the same is recognition of their work to date, and a vote of confidence as they enter a second term.

In all, the ministry refresh was slightly broader than expected, in part because of the factional infighting that resulted in the dumping of Ed Husic and Mr Dreyfus from the frontbench.

Explained away by the PM as “part of the process”, it allowed the elevation of his own factional ally Tim Ayres into Cabinet, as well as the promotion of strong WA performer Anne Aly.

Sam Rae, Jess Walsh and Daniel Mulino were all elevated into the outer ministry, as expected.

Andrew Charlton, regarded as one of the strongest performers in Labor’s backbench, was awarded with the cabinet secretary position as well as an assistant minister role. Rebecca White, the former Tasmanian opposition leader turned federal MP, has been propelled straight into an assistant ministry.

Peter Khalil, a member of the Victorian right, was elevated into the assistant ministry, while Tim Watts was removed of his assistant ministry and given the role of “special envoy for Indian Ocean affairs”.