Former prime minister Kevin Rudd will stay on the Labor backbench until after the next election after his successor Julia Gillard passed him over in her Cabinet reshuffle today.

Ms Gillard has unveiled a Cabinet with minimal changes from that which was helmed by Mr Rudd until the Labor leadership coup last week.

She said she would be "absolutely delighted" to have Mr Rudd in a senior frontbench role - but only if Labor wins the next election.

"What I have said to Kevin Rudd is I would be absolutely delighted to see him serve as a senior Cabinet minister in the team if the Government is re-elected," she said.

Acknowledging that Mr Rudd was going through a hard time after his swift and spectacular ousting last week, she said she hoped he would be able to spend more time with his family.

"It is best to have as limited a reshuffle as possible to keep the maximum stability amongst the team," she added. "The premium I've put is on stability."

In a statement issued after Ms Gillard's reshuffle announcement Mr Rudd said he respects her decision.

"Ultimately, decisions on Cabinet appointments are a matter for the Prime Minister," he said.

"For the immediate future, my family and I have decided to take a break. Following that, I will be working in my own electorate of Griffith and in any other way deemed appropriate to support the re-election of the Government."

Ms Gillard has allocated her former responsibilities of Education, Workplace Relations and Social Inclusion to Simon Crean.

Stephen Smith will stay on as Foreign Minister and take over Mr Crean's Trade portfolio.

There had been speculation that Mr Rudd would be handed Mr Smith's portfolio.

Mr Crean said he looked forward to serving as the Government gears up to fight the election.

"We take nothing for granted. The task ahead is a hard one," he said.

Mr Crean previously served as an education minister under Paul Keating and led the party for two years in Opposition.

Ms Gillard had been criticised for taking on too many portfolios and she has brushed aside questions that she should have split the load.

"I didn't think it would be a problem for Simon to perform this work and that's why I've invited him to do it," she said.

Lindsay Tanner, who is retiring at the next election, will keep serving in the Finance portfolio until he retires.

There have been no changes to the positions held by the key factional powerbrokers behind Ms Gillard's elevation, Mark Arbib and Bill Shorten.

Despite the poll bounce Ms Gillard has received in recent days she said the election will be a tough fight.

"I am not making any assumptions about what will happen on election day," she said.

And she has reiterated her desire to move away from her predecessor's centralised approach.

"I've said one of my hallmarks of prime minister is I intend to take a consultative approach," she said.

Opposition spokesman for workplace relations Eric Abetz says small business should be worried about Mr Crean's move to the portfolio.

"The appointment of Simon Crean, the former President of the ACTU, clearly is an indication of the direction the Labor Party will take," he said.

Opposition Leader Tony Abbott has dismissed the Cabinet changes.

"It's the same people with the same policies producing the same problems for our country," he said.

"Any significant change was going to upset the factions and the last thing she can afford to do is upset the factions who put her there."