Foreign minister quits role

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Australia's new prime minister Scott Morrison has removed the cybersecurity ministry from his first ministerial line-up, while a handful of ministers that resigned last week have already returned to cabinet.

She added she hasn't yet decided whether she will run for office in the country's next general election, set for 2019.

Mr Morrison revealed that "more women have been appointed to Cabinet and the portfolios of Small Business" and "Industrial Relations have been returned to Cabinet level".

Australia's former prime minister has said he will resign from parliament this week in a move that could cost the government its single-seat majority.

"You would have to ask the individuals involved but it appeared to be a tactic to promote Peter Dutton into the prime ministership, whatever the cost".

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The challenge had been instigated by Home Affairs Minister Peter Dutton, whom Morrison - also to the right of the party - defeated in a secret ballot.

Christopher Pyne and Steve Ciobo are possible replacements for Bishop in the Foreign Affairs portfolio.

"This new Liberal-National team is a next-generation team", Morrison told reporters in Canberra of the governing coalition between the Liberals and the rural-based Nationals party.

Mr Turnbull praised Ms Bishop, saying she "has been and remains an inspiring role model for women here and around the world".

She attracted no votes from her home state of Western Australia.

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"There was a lot of people on that list who would have voted for Julie".

For more than 10 years, the West Australian lawyer with the killer stare and snappy suits was the Liberal Party's second in command.

"They've got rocks in their head if they think we'll support Julie Bishop for Governor-General", said a Labor source.

Morrison's new cabinet included a number of ministers who were involved in Turnbull's ouster, taken as a sign he was trying to unite the party.

"I want to express my hope and confidence that politics today is in better shape than it was just a few days ago", he said at a speech in Sydney today.

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Those in the running include Christine Forster, a well-known Liberal councillor in Sydney and the sister of former prime minister Tony Abbott, as well as former diplomat Dave Sharma, who was the Australian ambassador to Israel before moving to the private sector. "I have been pre-selected by the Liberal Party for the seat of Curtin and I have made no decision regarding the next election".

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