The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on the moderate reshuffle of Prime Minister Anthony Albanese’s ministry.

Context

  • Prime Minister Anthony Albanese has undertaken a moderate reshuffle of his ministry following the Labor government’s landslide election victory May 3. As Albanese promised during the election campaign, the treasury, finance, foreign affairs, defense and trade departments have not been changed. The same is true for the climate and energy, health, infrastructure, defense industry, home affairs, resources, energy and agriculture portfolio.
  • The 42-member ministry has 23 members in the Cabinet, seven in the outer ministry and 12 assistant ministers. As election counting continues, Labor is on track to increase its numbers from 78 to 94 in the 150-seat House of Representatives and from 25 to at least 28 in the 76-seat Senate. The factional, geographical and gender balances of the Labor caucus have changed following the election, leading to winners and losers in the ministerial carve-up. Controversially, Attorney General Mark Dreyfus and Industry Minister Ed Husic have been dropped from the ministry, replaced in their portfolios by former Communications Minister Michelle Rowland and Albanese factional ally Tim Ayres, respectively. However, the reshuffle has enabled the promotion of talented economic thinkers Dr. Daniel Mulino and Dr. Andrew Charlton.

Key Changes to the Cabinet

  • Michelle Rowland, Attorney General: Formerly communications minister, Rowland will have responsibilities that include copyright, fraud and anti-corruption policy; international law; government integrity; criminal law policy; human rights; native title; and privacy. Responsibility for the Australian Federal Police and Australian Security Intelligence Organization will revert to the minister for home affairs, after what Albanese conceded had been “information sharing” issues. Tony Burke remains minister for home affairs, immigration and citizenship, cybersecurity and the arts.
  • Tim Ayers, Minister for Industry, Science and Innovation: A factional ally of Albanese and a former manufacturing union official, Ayers replaces Husic, who had established strong ties with the technology sector and was responsible for Labor’s flagship Future Made in Australia initiative. Rising star Dr. Andrew Charlton becomes assistant minister for science, technology and the digital economy as well as cabinet secretary. The government intends to finalize proposed mandatory guardrails for artificial intelligence, a national artificial intelligence action plan and a strategic examination of research and development this year.
  • Murray Watt, Minister for Environment and Water: Watt faces the challenge of making Labor’s proposed national independent Environment Protection Agency acceptable to the business community, particularly the resources sector in Western Australia. The opposition has called on Watt to decide promptly on the extension of Western Australia’s North West Shelf gas hub. Watt will also be responsible for packaging and recycling reforms. He replaces Albanese’s former leadership rival, Tanya Plibersek, who has been moved to social services.
  • Anika Wells, Minister for Communications:  The government intends to introduce a Digital Duty of Care Bill and implement a social media ban for minors under 16. It is also considering proposed changes to the Online Safety Act.

Implications

  • The new ministry will be sworn in May 13, after which the Administrative Arrangements Order (AAO) will be released. The AAO determines the matters and legislation each department and its minister handle. Albanese will depart for Indonesia May 14 and join the inaugural mass of Pope Leo May 18. He is expected to attend the May 26 Association of Southeast Asian Nations summit and the mid-June Group of Seven summit alongside a visit to the White House in June. Parliament is slated to return in late July.

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

Best regards,

BGA Australia Team