West Australian MP Ken Wyatt has made history as the first Indigenous Australian to be appointed Indigenous Affairs Minister.
Prime Minister Scott Morrison has announced his new cabinet line-up, with a number of winners and losers.
On Sunday, Mr Morrison named Ken Wyatt as the first Indigenous Australian to be Indigenous Affairs Minister.
"Incredibly honoured to be the first Aboriginal Minister for Indigenous Australians," Mr Wyatt tweeted.
"Committed to working & walking together with our Elders, families & communities to ensure the greatness of our many nations is reflected in the greatness of our Australian nation, now and forever."
The West Australian MP was the first Indigenous Australian to become a federal government minister when he took on aged care in January 2017.
As expected, Environment Minister Melissa Price - who had been unable to comfortably answer media questions about her portfolio - has been demoted from the cabinet and will now be Defence Industry Minister.
"Melissa and I discussed her role. She asked to be given a new challenge and I was pleased to give her one," Mr Morrison told reporters.
Rural NSW Liberal MP Sussan Ley has replaced her as Environment Minister.
It's a return to the cabinet for Ms Ley, who in 2017 was forced to stand down as Health Minister after revelations she purchased a Gold Coast apartment while on a work trip.
"I have high expectations of my ministry and clear goals for each of their roles," Mr Morrison said.
"This will include congestion-busting on regulatory and bureaucratic roadblocks, making better use of technology and better-integrating service delivery across portfolios."
The 22-member cabinet includes a record seven women.
The prime minister promoted key supporters, Alex Hawke and Stuart Robert, after they were instrumental in ensuring he defeated Peter Dutton in last year's leadership ballot.
Mr Robert was assistant treasurer but has been promoted to cabinet as Government Services Minister and will oversee the National Disability Insurance Scheme.
He will also have responsibility for Service Australia, a new agency to make it easier for citizens to use government services.
Mr Hawke will be International Development Minister and assistant Defence Minister, in a bid to build a stronger defence and economic ties with the Pacific.
Nationals MP David Littleproud has been given water resources, natural disasters, and emergency management, while Bridget McKenzie will become Australia's first ever female Agriculture Minister. Both will be in the cabinet.
Alan Tudge will be Population Minister, while Richard Colbeck will take Aged Care, Youth and Sport.
Victorian senator Mitch Fifield will quit the Senate and go to the United Nations as ambassador.
Paul Fletcher will take over as Communications Minister, and he said his priority was to complete the NBN rollout.
NSW senator Arthur Sinodinos will also replace Joe Hockey as ambassador to the United States.
Linda Reynolds will be Defence Minister, Peter Dutton will remain in Home Affairs and Dan Tehan will stay in Education.
Josh Frydenberg remains Treasurer, while Mathias Cormann stays on as Finance Minister.
Michaelia Cash will get Employment and Skills, but Attorney-General Christian Porter will take over her responsibility for Industrial Relations.