Former Labor premier Steve Bracks says his appointment as consul-general in New York has been revoked by the incoming Abbott government.

Mr Bracks was appointed to the role in May and was due to start work in the US financial capital this week.

But he issued a statement this morning saying he was informed last night of the decision by Foreign Minister-elect Julie Bishop to strip him of the role.

"The Secretary of the Department of Foreign Affairs informed me last night following a briefing he had with the Foreign Minister-elect, The Hon Julie Bishop, that she would be revoking my position as Australia's consul-general in New York," the statement said.

What does the consul-general do? The Australian Consulate-General (CG) aims to influence perceptions of Australia in the United States and raise awareness of issues in the Asia Pacific

The Australian Consulate-General (CG) aims to influence perceptions of Australia in the United States and raise awareness of issues in the Asia Pacific The consul-general is the head of the CG, and works to to promote Australia's interests in influential business, medial, political, educational and cultural circles

The consul-general is the head of the CG, and works to to promote Australia's interests in influential business, medial, political, educational and cultural circles Mr Bracks would have replaced Phillip Scanlam AM, who commenced the role in April 2009

"I wish the Foreign Minister-elect every success with her new appointment for this position."

Mr Bracks says he intends to find work in Australia's funds management sector.

This afternoon he said he would not buy into an argument over the decision.

"The good news is I'll be able to get to the finals to see the Cats have another go this Friday night and hopefully get through, which will be something," he said.

"My lad just came back from overseas, so that's nice and I'll be looking forward to being with him."

Mr Bracks says he thinks he was the right man for the job.

"We've had previous senior politicians in this job over a long period of time and senior business people," he said.

"My financial services background, my funds management background and my background as a premier would have been well suited to the role."

"I was available, I was appointed democratically by a government through executive council and the new government has a different view and I guess they'll pursue that."

Labor says axing Bracks from NY post 'vindictive'

Labor politicians, however, have attacked the incoming government's decision to strip Mr Bracks of the role, with outgoing Labor minister Tanya Plibersek describing the move as extraordinary.

"I was very disappointed to hear [this was] the first act of an incoming foreign minister; it's both petty and vindictive," she said.

"This was an appointment announced in May, well before we went into the caretaker period, and Steve Bracks is eminently qualified to serve as consul-general.

"When we came into government in 2007, Amanda Vanstone was allowed to complete her term in Italy.

"But even on top of that, we appointed both Tim Fischer and Brendan Nelson to represent Australia overseas.

"We considered that they were suitable people to do so. We acted in a bipartisan way, in the best interests of Australia.

"I just think the pettiness of it is extraordinary."

Outgoing immigration minister Brendan O'Connor says the decision was "very vindictive" and a "grave mistake".

"It's an insight into Mr Abbott's view of power and authority to actually revoke the appointment of a very popular and extraordinarily competent and capable person," he told Sky News.

"It really doesn't augur well for this government if this is the way in which they're going to act.

"It's a sign to me that power is about handing out goodies to your mates, not being magnanimous and I think that's a concern."

Turnbull says decision to appoint Bracks was unprecedented

Senior incoming minster Malcolm Turnbull has defended the decision.

Mr Turnbull said the Labor government's decision to appoint Mr Bracks just before the caretaker period came into effect was unprecedented.

"I think the decisions to appoint people to positions, a number of positions, including diplomatic positions, literally on the eve of the beginning of the caretaker period, with the appointment to take effect after the date of the election, or around the date of the election, was also unprecedented," he said.

Former Victorian Liberal premier Jeff Kennett says Ms Bishop was not acting vindictively when she removed Mr Bracks from the position.

"Steven was a political appointment made a time when the election had been called, although a long time in advance," he said.

"It's always been said and Julie Bishop has indicated that this appointment, if he doesn't take up the job before the Coalition was elected, would not go ahead.

"This was a political appointment by a person who was still very political, was involved in this campaign, who hadn't taken up his post."

Brandis says Coalition wasn't consulted about appointment

Incoming attorney-general George Brandis says the Coalition disagreed with the timing of Mr Bracks's appointment.

"Mr Bracks's credentials for the New York post having been a state premier were not obvious to us," he said.

"We weren't consulted about it, it was a decision made at the very end of the government when the consultation requirement was in place."

Outgoing Labor minister Mark Dreyfus says the Government was not required to consult the Coalition about the appointment.

"Senator Brandis's claim today that the Government should have consulted the Opposition about this appointment in April or early May is wrong," he said.

"There is no basis for the suggestion that months before an election is called the Opposition should be consulted about appointments."