Despite criticism of his previous support for Rudd to return as prime minister, Anthony Albanese's transport portfolio was expanded to take on regional development and local government - vacated by Simon Crean who was sacked over his aborted campaign for Rudd's return.
Gillard consulted key independent MPs over Albanese's extra jobs and said she was "comfortable" with him remaining in Cabinet.
Craig Emerson, a staunch supporter of Gillard, adds tertiary education, skills, science and research to his job as Trade Minister. And Climate Change, Industry and Innovation Minister Greg Combet's department will merge with the Climate Change Department, a move which the Greens says is a step backwards.
Four new ministers have been appointed: Catherine King (Regional Services), Don Farrell (Science), Sharon Bird (Higher Education) and Jan McLucas (Human Services).
Opposition Leader Tony Abbott says Gillard will be working with an "L-plate Cabinet" in the lead-up to the federal budget in 50 days' time.
"This is quite a challenge for the Government, given that the budget will be prepared with some of Labor's most respected and most competent members on the back bench rather than on the front bench," he said.
Abbott noted the new ministry would include the sixth Small Business Minister in less than three years. More than half Labor's 102-member caucus are or have been parliamentary secretaries or ministers since Labor was elected in 2007.