UPDATE 1-Australian PM Gillard announces new cabinet

* Swan remains Treasurer

* Wong moves from climate to be Finance Minister

* Former PM Rudd to be Foreign Minister

(Adds details, quotes, mining tax uncertainty)

By James Grubel

CANBERRA, Sept 11 (BestGrowthStock) – Australian Prime Minister
Julia Gillard unveiled her new cabinet on Saturday, with Wayne
Swan retaining his treasury portfolio and former climate
minister Penny Wong moved to the senior finance portfolio.

Gillard also kept Martin Ferguson in the key Resources and
Energy portfolio, where he will be crucial to pushing through
plans for a 30 percent tax on the profits of big iron ore and
coal mines.

In other changes, former union leader Greg Combet was
promoted to a cabinet position as Minister for Climate Change
to replace Wong, while Anthony Albanese stays at transport and
infrastructure.

Combet, a political trouble-shooter known for his
negotiating skills, faces the task of drawing up a plan to put
a price on carbon pollution, blamed for global warming, and
finding community consensus for action against climate change.

“The ministry continues a strong emphasis on economic
management and the creation of jobs,” Gillard told reporters in
Melbourne.

“We have sought to provide stable economic management, and
we have sought to focus on jobs. That kind of economic
stability will continue, as will our approach to ensure the
budget comes to surplus in 2013.”

But the difficulties facing the government were underlined
when independent Andrew Wilkie demanded changes to the planned
mining tax, which the opposition had threatened to scrap during
the campaign for last month’s election if it took office.
[ID:nSGE68806O]

Wilkie told The Australian newspaper he would not support
the new Minerals Rent Resource Tax (MRRT) unless it was
redesigned and possibly expanded to include more mining
projects.

“I think we need to go back to the drawing board because
the MRRT as it is currently designed is unsatisfactory,” he
told The Australian.

Gillard last week secured a second term in office in the
aftermath of the close election with the support of three
independents and a Green MP. Hers will be the first minority
government since World War Two, raising concerns the
administration will be unstable and may not run its full term.

The new ministry is Gillard’s first chance to put her stamp
on the government since the ruling Labor Party dumped former
Prime Minister Kevin Rudd in late June, as she made only minor
changes to the cabinet ahead of the Aug. 21 election.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For full Australian election cover [ID:nAUVOTE] For a factbox on the mining tax [ID:nSGE687023]

Australia political risks: http://r.reuters.com/gan92n

For an election graphic: http://link.reuters.com/cyq79n
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In a bid to heal some of the internal tensions over her
move against Rudd, Gillard gave Rudd the senior role of Foreign
Minister in her new government.

But two Labor figures, Mark Arbib and Bill Shorten, key
players in the move to dump Rudd in favour of Gillard, were
also rewarded.

Arbib moves from the junior employment participation
portfolio to become the Minister for Indigenous Employment and
Economic Development, while Shorten becomes Assistant
Treasurer.

The cabinet reshuffle was made easier by former finance
minister Lindsay Tanner retiring from politics and former
defence minister John Faulkner announcing before the election
that he would stand down from the ministry.

Former foreign minister Stephen Smith was moved to defence,
with responsibility for policy on Afghanistan, where Australia
has around 1,600 troops.

Former Small Business Minister Craig Emerson will be the
new Trade Minister.
(Editing by Ron Popeski)

UPDATE 1-Australian PM Gillard announces new cabinet