Five new faces have been promoted to the Federal Cabinet as part of Prime Minister Malcolm Turnbull's reshuffle.

Key points: David Littleproud, Bridget McKenzie, Michael Keenan, John McVeigh and Dan Tehan all new to Cabinet

David Littleproud, Bridget McKenzie, Michael Keenan, John McVeigh and Dan Tehan all new to Cabinet Reshuffle includes two new portfolios: Jobs and Innovation, Home Affairs

Reshuffle includes two new portfolios: Jobs and Innovation, Home Affairs Darren Chester dumped from Innovation, Arthur Sinodinos resigned due to health

In a surprise appointment, first-term Nationals backbencher David Littleproud will be the new Agriculture Minister.

Deputy Nationals leader Bridget McKenzie will take the Sport, Rural Health and Regional Communications portfolios and regional Liberal Dan Tehan has been elevated to the role of Social Services Minister.

Justice Minister Michael Keenan will join Cabinet as the Minister for Human Services, and Queenslander John McVeigh will take on the Regional Development portfolio.

Christian Porter is the new Attorney-General, replacing George Brandis, who will be Australia's High Commissioner to the United Kingdom.

Mr Brandis denied his removal from Cabinet was due to performance concerns telling 7.30: "I wouldn't be accepting or be offered a position as important as this if it were."

Infrastructure Minister Darren Chester has been dumped from Cabinet, with Deputy Prime Minister Barnaby Joyce taking over the portfolio.

Mr Turnbull struggled to explain why Mr Chester had been booted from the ministry.

"I have to say, Darren has been an outstanding minister, I regret that this has resulted in him no longer being a member of the ministry," Mr Turnbull said.

'I'm disappointed by the leader of the Nationals': Chester

As Nationals leader, Mr Joyce has a key role in deciding which members of the party are in the ministry.

Mr Turnbull said he closely consulted with Mr Joyce and said the Deputy Prime Minister could answer directly as to why Mr Chester was dropped from the frontbench.

The Prime Minister said "geography had to be taken into account", given Mr Chester is from Victoria and there are more Nationals in Queensland.

Mr Chester issued a statement shortly after the reshuffle announcement saying he was disappointed he had been dropped but was proud of the work he had achieved in Cabinet.

"I'm proud of the work my team and I have done on behalf of the Government and I'm sorry we won't get to finish some of the jobs we've started," he said.

"Naturally, I'm disappointed by the leader of the Nationals' decision to exclude me from his Cabinet team.

"Politics can be a tough business for all involved."

Mr Turnbull defended the decision to promote Mr Littleproud directly to Cabinet where he will be Agriculture Minister.

The promotion has shocked some of Mr Littleproud's colleagues, as he has only been in Parliament since last year's election and at 41 he is relatively young to be a Cabinet minister.

The Prime Minister described Mr Littleproud as a capable man with 20 years' experience in agribusiness.

Nationals David Littleproud and Bridget McKenzie are among those promoted to Cabinet. ( Supplied/ABC News )

The reshuffle has also seen the creation of two new portfolios, including the super-ministry for Home Affairs headed by Peter Dutton and a Jobs and Innovation portfolio to be run by Employment Minister Michaelia Cash.

Industry Minister Arthur Sinodinos has resigned from the Cabinet for health reasons.

Senator Sinodinos has issued a statement explaining that he is being treated for cancer.

In the statement, he says his prognosis is excellent but it will take months to complete his treatment and regain full health.

He said he would continue as a NSW Liberal senator and hoped to return to a senior ministerial or other government role in the future.

"Arthur is one of our generation's most accomplished and experienced public servants and his contributions to the Cabinet have been sorely missed since his illness was first diagnosed. We wish him all the best in his recovery," Mr Turnbull said.

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