The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on the Australia’s latest Ministry reshuffle.

Context

  • Australian Prime Minister Anthony Albanese announced changes to his ministries on July 28, ahead of an election that will be held within the next 12 months and possibly this year. The reshuffle was expected due to the perceived mishandling of the immigration portfolio and, more recently, the retirement of two Cabinet ministers. Notable changes include new ministers of home affairs, employment and workplace relations and agriculture. The minister for defense industry has moved into the Cabinet from the outer Ministry — comprising junior ministers outside the Cabinet — in what Albanese said reflected the importance of the AUKUS (Australia-United Kingdom-United States) defense partnership.
  • The May 14 budget was overshadowed by immigration policy, following revelations that some non-Australian residents with criminal records have remained in Australia. Under pressure, the immigration minister changed the policy, but analysts speculated that he would be shifted to another portfolio as part of a wider ministerial reshuffle (see BGA’s June 11 update | password: G0M2Lq6Yx1pT). His senior minister, the home affairs minister, was also shifted in the reshuffle to the politically important portfolio of housing. Albanese pointed to the stability of the Ministry over the last two years and said the reshuffle allowed the “entry of some new talent.” The new home affairs minister, Tony Burke, will travel to Indonesia this week for meetings focused on civil maritime security, people smuggling and counterterrorism.

Significance

  • The Ministry contains 23 Cabinet ministers, seven non-Cabinet ministers and 12 assistant ministers. The full list of changes can be viewed here. Some notable Cabinet changes are as follows:
    • Tony Burke, member of Parliament (MP): Minister for Home Affairs, Minister for Immigration and Multicultural Affairs, Minister for Cybersecurity, Minister for the Arts and Leader of the House.
    • Julie Collins, MP: Minister for Agriculture, Fisheries and Forestry and Minister for Small Business.
    • Sen. Murray Watt: Minister for Employment and Workplace Relations.
    • Clare O’Neil, MP: Minister for Housing and Minister for Homelessness.
    • Sen. Malarndirri McCarthy: Minister for Indigenous Australians.
    • Pat Conroy, MP: Minister for Defense Industry and Capability Delivery and Minister for International Development and the Pacific.
  • Albanese announced last week that the ministers for skills and training and indigenous Australians would step down from their portfolios and retire from politics; he said a new Ministry would be announced July 28. Nevertheless, a reshuffle was widely expected before the scheduled resumption of Parliament August 12. The changes reflect factional, gender and geographical considerations. For example, the retiring Cabinet ministers — both from the Left faction — have created room for McCarthy and Conroy — also from the Left faction — to enter the Cabinet.
  • The departing immigration minister, Andrew Giles — a close ally of the prime minister — remains in the outer Ministry as minister for skills and training. O’Neil has been moved from home affairs, a mega-portfolio created by the former Liberal-Nationals government in 2017 that included national security and law enforcement agencies, immigration and cyber policy. O’Neil and Giles had been targeted by the opposition and conservative media over immigration controversies. O’Neil, who had been viewed a rising star, remains in the Cabinet in the politically important portfolio of housing, central to key issue cost of living. The Greens and Liberal-Nationals are using housing affordability to siphon votes in Labor seats in the inner city and outer suburbs, respectively.

Implications

  • Labor claims it inherited a mess in home affairs and that O’Neil has done a good job reforming the department. The experienced Burke becomes minister for home affairs, minister for immigration and multicultural affairs and minister for cybersecurity. Under Labor, responsibility for national security and law enforcement agencies has been progressively handed back to the Attorney-General’s Department, with the Australian Security Intelligence Agency the most recent example. The politics of Burke’s appointment are evident: he is one of three Cabinet ministers who hold seats in areas with large Muslim populations. Muslim activists, upset at Labor’s position on the Gaza conflict, are threatening to run candidates against Labor MPs.
  • Conroy, the minister for defense industry and capability delivery and the minister of international development and the Pacific, moves into the Cabinet. Albanese said AUKUS “is such an important area of delivery that it is worthy of two Cabinet ministers”. Capability delivery has been added to Conroy’s portfolio.
  • Albanese also announced three special envoys (nonministerial roles): MP Peter Khalil as special envoy for social cohesion; MP Luke Gosling as special envoy for defense, veterans’ affairs and Northern Australia; and MP Andrew Charlton as special envoy for cybersecurity and digital resilience.

We will continue to keep you updated on developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team