Linda Burney and Brendan O’Connor to resign from politics, Anthony Albanese confirms

The retirement of two veteran Labor ministers will trigger Prime Minister Anthony Albanese’s first cabinet reshuffle since coming to office, to create a “refreshed” new-look ministry he hopes will be capable of winning Labor another term of majority Government.

A game of factional jostling began on Thursday, as Indigenous Australians Minister Linda Burney and Skills and Training Minister Brendan O’Connor, both from the Left faction, called time on their long political careers.

Having both dedicated more than 20 years to the Labor Party, the pair will serve out the rest of their term – a maximum of ten months – on the backbench.

Crucially, their retirement gives Mr Albanese room to reassess his board, and he will unveil a rejigged frontbench in Canberra on Sunday.

Speculation is growing that thee long-awaited shakeup to Labor’s 30-member ministry will be more substantial than previously thought, to deal with lingering problems that have plagued his government and ensure the right pieces are on the board in time for the next election.

Embattled Immigration Minister Andrew Giles – a close friend and Left factional ally of Mr Albanese – is set to be moved from his portfolio, after a torrid 10 months in the wake of the High Court’s NZYQ ruling and the broader detainees saga.

But despite the Coalition’s insistence otherwise, Mr Giles is unlikely to be dumped from the ministry altogether.

Agriculture Minister Murray Watt – a Queensland senator regarded as a strong performer by his colleagues – is tipped for a new role, with speculation rife he could replace Clare O’Neil in the home affairs portfolio.

Multiple Labor sources said Ms O’Neil, who is considered a skilled communicator by her colleagues but perhaps constrained in her current role, has her sights on the housing portfolio, currently held by low-profile Tasmanian Julie Collins.

Ms Collins has struggled to get Labor’s housing agenda through the parliament, competing with the Greens’ well-performing portfolio spokesman Max Chandler-Mather.

There have been some suggestions Ms Collins could be moved into the skills and training portfolio, vacant after Mr O’Connor’s resignation.

Indigenous NT senator Malandirri McCarthy, the left-faction Assistant Minister for Indigenous Australians, is expected by many Labor sources to leapfrog the outer ministry and replace Ms Burney in cabinet.

The departure of Ms Burney and Mr O’Connor opens up two vacancies in the 30-member ministry – both of which will go to fellow left-faction MPs.

Nominations for those positions opened on Thursday morning, set to be a five-way contest between Senator McCarthy and fellow assistant ministers Patrick Gorman, Tim Ayres, Ged Kearny, and Jenny McAllister.

But given just four Labor frontbenchers currently come from the Senate, senior Labor sources said one major consideration for the reshuffle was the need to appoint more ministers from the upper house.

That would make Senators McCarthy, Ayres and Kearney the most likely to be promoted than their lower-house colleagues,

Left faction powerbrokers will decide on the two candidates before caucus rubber-stamps the promotions.

Mr Albanese is then responsible for allocating portfolios, including cabinet posts.

Whichever two are promoted will leave open assistant ministers positions, with experienced backbenchers Julian Hill, Josh Wilson, and Kate Thwaites considered leading contenders for promotion.

Lingiari MP Marion Scrymgour has also been mentioned by some in the Party as a potential contender for the Assistant Indigenous Minister position, should Senator McCarthy be promoted.

As he stood beside the two retiring veteran MPs on Thursday, Mr Albanese praised them for their role in his “stable” cabinet over the last two years, saying “no government in living memory has had the same cabinet and ministerial positions for its first two years in office”.

Ms Burney’s resignation draws a curtain on a history-making 21 year career in politics, which began when she became the first Indigenous person elected to NSW Parliament in 2003.

She was promoted to Indigenous Australians Minister after the 2022 election – putting her front and centre in the campaign for an Indigenous Voice to Parliament.

Often weighed down by a medical condition that affected her voice, the 67-year-old struggled to compete during the bitter months-long debate with her Coalition rival Jacinta Nampijinpa Price, before the Yes campaign she had championed was comprehensively defeated.

As she held back tears on Thursday, Ms Burney said despite not achieving the outcome she had hoped for in the referendum, she believed history would look back “kindly” on her and the Government’s efforts.

“I know in my heart, I gave all that I could to close the gap and to advance reconciliation,” she said.

Ms Burney said now was the time to “hand the baton on”, after “one heck of a journey”.

“I have been through more than my fair share of life’s ups and downs,” she said.

“Progress doesn’t always move in a straight line. We make progress and then we have setbacks. That’s the history of Indigenous justice in this country. But with every passing generation, the arc bends a little bit more towards justice. I have had my bit and the time for a new generation is now. The referendum outcome was of course disappointing but we accept that outcome.

“There are some silver linings in that outcome. The silver lining of 6.5 million Australians saying, ‘Yes’. The silver lining of a new generation of young Indigenous leaders coming through.”

In praising his close friend and factional ally on Thursday, Mr Albanese described Ms Burney as an “inspirational minister” who had overcome more discrimination, hardship and loss in her life “than most of us can comprehend”.

“Anyone who has the honour of calling Linda a friend understands the great strength behind her warmth and the courage that is the essence of her grace,” Mr Albanese said.

He said her long career in politics was “remarkable proof that what Linda has drawn from everything she had to endure is not bitterness or despair. It is positive, it is one of hope and one of optimism for our nation.”

“For Linda, so much of her work ... has always been personal.”

Senator Price offered Ms Burney her “sincere commendation” on Thursday, saying that despite their differences in opinion on how to bring about closing the gap, the minister’s efforts had been steadfast.

“Minister Burney’s career has been driven by a burning desire to improve the lives of Indigenous Australians,” Senator Price said.

“When the day comes that Indigenous Australians have the same life expectations as every other Australian, it will be in part due to Minister Burney’s dedication in areas of politics filled with difficult and harrowing realities.”

Mr O’Connor’s exit also came as no surprise after a 23-year career in Federal Parliament, which included cabinet positions in the Gillard and Albanese Governments.

Less high-profile than many of his cabinet colleagues, the former union official who became the Gorton MP in 2001 has been responsible for negotiating landmark skills agreements with the States, and rolling out hundreds of thousands of fee-free TAFE places over the last two years.

In praising his colleague who he met almost 40 years ago during their Young Labor days, Mr Albanese said “you couldn’t ask for a better colleague and friend” than Mr O’Connor.

“And you won’t find a more decent human being. I deeply respect his judgement, I highly value his advice that I have sought not just in his portfolio but across a range of issues over a long period of time,” he said.

“In making skills and training is important as university degrees, he has changed the way that education, lifelong education, is perceived in this country in a way that is so important.”

Mr O’Connor said after a long career in politics, during which he served under three Labor prime ministers - Kevin Rudd, Julia Gillard, and Anthony Albanese - it was “time to spend more time at home”.

Mr O’Connor, who lost his wife in 2018, said his retirement would allow him to spend more time with his daughter Uma.

“I am not complaining because I have been so lucky, but I do think it is time I spent more time at home with my daughter,” he said. “(She) has been amazing. If she was not so resilient and remarkable, I would have left the place long ago. I also have my father living with us and I want to be able to be there for him as well.”

He said he believed he’d left the portfolio in “pretty good nick” for whoever took his job.

His Coalition counterpart Sussan Ley praised Mr O’Connor as a “good man” who she had enjoyed a “constructive” relationship with.

She encouraged Mr Albanese to appoint someone with equally strong experience to fill Mr O’Connor’s shoes in the looming cabinet reshuffle.

“While I have disagreed with much of Brendan O’Connor’s approach, he had a level of experience befitting this important portfolio. So today I urge the Prime Minister to replace him with someone of equal standing,” she said.