Tony Abbott says his new frontbench team will 'reset and refocus' the government for the new year.
The prime minister on Sunday announced a major reshuffle, dumping Defence Minister David Johnston and naming Social Services Minister Kevin Andrews in his place.
Immigration minister Scott Morrison has been moved into an expanded social services portfolio, and Sussan Ley promoted to the health ministry and cabinet.
Meanwhile, her predecessor Peter Dutton has been given the immigration portfolio.
The reshuffle just days before Christmas is an attempt to reboot the coalition, who by the prime minister's own admission had a 'ragged' end to 2014.
'This is a good team. It is a strong team. It is a balanced team,' he told reporters in Canberra.
'It will put jobs and families at the heart of our political agenda for 2015.'
But Acting Opposition Leader Penny Wong said no reshuffle could fix the government's biggest problem, its unpopular budget.
'You might change the tyres on the bus but the wheels are still spinning,' she said.