The reshuffle follows this week’s bloody leadership stouch and the departure to the backbench of former Foreign Minister Kevin Rudd and the retirement of  Sports Minister Senator Mark Arbib.

Until Carr is sworn in, Craig Emerson will continue to act as Minister for Foreign Affairs.

Senator Lundy said she hopes to continue the good work by Minister Arbib, particularly leading up to the Olympics and Paralympics.

“I have always been passionate about the capacity of sport to forge communities, build acceptance and overcome social boundaries,” she said.

“Sport is far more than the sum of its parts and is a critical area of social policy. As Minister, I look forward to championing the power of elite sport to inspire and community sport to promote participation, inclusion and a sense of belonging in the community.”

Senator Lundy said she’ll work closely with Minister for Immigration and Citizenship Chris Bowen to move the multicultural and settlement policy.

“Sixty percent of Australia’s future population growth will come from migration and as a government it is critical that we have strong policy to effectively leverage the strength of our diversity,” she said.

“The elevation of multicultural affairs into the ministry reflects the Gillard Government’s strong commitment to an inclusive Australia.”

Other changes include: Emerson now Minister for Trade and Competitiveness; Brendan O’Connor – Minister for Small Business and Minister for Housing and Homelessness; Attorney-General Nicola Roxon –  Minister for Emergency Management; Tony Burke – vice president of the Executive Council; David Bradbury – Assistant Treasure and newly-created Minister Assisting for Deregulation; Jason Clare – Minister for Defence Materiel; and Kim Carr – Human Services.

Senator Lundy was also made Minister Assisting for Industry and Innovation.