TONY Abbott says the contest between Labor and the coalition was always going to tighten as the election loomed, but concedes things are different now that Kevin Rudd's in charge.
Mr Abbott said winning the election from opposition was always going to be "like climbing Mount Everest", but admitted the fight would be different with Mr Rudd at the helm.
"All of our candidates are galvanised," he told reporters in Canberra.
"It was the same last week as it is this week, but certainly I think the atmospherics are different."
Mr Abbott's comments follow the unveiling of the his new-look Rudd ministry, a line up derided by the opposition leader as the "C-Team" devoid of experience.
The opposition leader also suggested "Kevin 747" was trying to delay the election for as long as possible so he could travel abroad to attend international summits like the G20 in September.
"I think he wants to campaign for the prime ministership of this country from the front of a 747,'' he said.
Mr Rudd's new-look ministry converged on Government House in Canberra today to be officially sworn in.
Rudd's new Cabinet challenges Libs Source: Getty Images
A total of 25 MPs took their oath before Governor-General Quentin Bryce.
Among the highlights was Tasmania MP Julie Collins telling Ms Bryce that she had practiced her signature.
Western Sydney Muslim MP Ed Husic was told by the Governor-General that his swearing in signalled a "good day for multiculturalism".
Ms Bryce personally asked about Brendan O'Connor's daughter and told the Governor-General that she spent the weekend learning how to ski.
Earlier, it was announced that Anthony Albanese will take on Stephen Conroy's old portfolio of Communications.
Chris Bowen MP fixes Deputy Prime Minister, Anthony Albabese, Tanya Plibersek MP looks on, at Government House on July 1, 2013 in Canberra, Australia. (Photo by Cole Bennetts/Getty Images) Source: Getty Images
Senator Penny Wong will keep her Finance portfolio.
HUDSON: RUDD REWARDS HIS BACKERS
Senator Jacinta Collins will take on Mark Butler's portfolio of Mental Health and Ageing.
Herald Sun columnist Susie O'Brien says Mental Health Minister Jacinta Collins' views on abortion and same sex marriage are inconsistent with her portfolio
Mr Butler will now assume Greg Combet's Climate Change portfolio and Tony Burke's environment portfolio.
Mr Burke will now be the Minister for Immigration and Citizenship and Minister for the Arts.
Joel Fitzgibbon will get Joe Ludwig's old portfolio of Agriculture.
Joel Fitzgibbon MP is sworn-in by Governor General Quentin Bryce as Minister for Agriculture, Fisheries and Forestry at Government House on July 1, 2013 in Canberra, Australia. (Photo by Cole Bennetts/Getty Images) Source: Getty Images
Bill Shorten will be made Minister for Education and keeps his workplace relations portfolio.
Mr Rudd said his was a "strong team".
"This team has been appointed on the basis of merits," he said.
"This is a very strong team."
As he announced his new team, Mr Rudd also spoke about the departure of veteran labor MP Simon Crean.
"Simon will be making a statement on his own future later today ... I acknowledge his contribution," Mr Rudd said.
Mr Crean, a key Rudd backer who in March called for a leadership spill, this morning said his time in politics is now at an end.
Mr Crean said he had a conversation with Mr Rudd shortly after he became prime minister.
"He offered me a position in the Cabinet," Mr Crean told 3AW's Neil Mitchell.
"I welcomed that, but I indicated I had come to a position not to contest the next election and he should take that into account."
Kate Ellis MP is sworn-in by Governor General Quentin Bryce as Minister for Early Childhood, Childcare and Youth. (Photo by Cole Bennetts/Getty Images) Source: Getty Images
Mr Crean said he was quitting because "it was his time".
"If I stood again I would be 67 by the time the next election came around, I wouldn't see myself quitting mid-term," Mr Crean said.
Former Labor leader Simon Crean announces his decision to retire from politics after 23 years.
"I started thinking seriously about this after the events of the 21st of March."
Mr Crean said he felt "vindicated" by the leadership change.
"It has happened - I think it is better for the party that it has happened," he said.
"We are now in a stronger position."
Mr Abbott also reflected on Mr Crean's resignation.
"It is sad for the country that Simon Crean is leaving politics," Mr Abbott said.
"Like Martin Ferguson he was a representative of the best of the Labor tradition. The parliament, the party and the country will be poorer for his absence."
Meanwhile, Brendan O'Connor has been moved from immigration to Minister for Employment, Skills and Training.
Brendan O'Connor MP is sworn-in by Governor General Quentin Bryce as Minister for Employment and Minister for Skills and Training at Government House on July 1, 2013 in Canberra, Australia. (Photo by Cole Bennetts/Getty Images) Source: Getty Images
"When I spoke to Brendan about this he was delighted," Mr Rudd said when asked if it was a sidestep because of the failed debate on 457s.
Mr Rudd said his cabinet would meet for the first time at 4pm this afternoon after being sworn in.
Senator Kim Carr, who quit his ministry following the failed March spill, will take on roles as Minister for Innovation, Industry, Science and Research and Minister for Higher Education.
Key Rudd backer Ed Husic, who was widely thought to have been in line for a promotion, gets the roles of Parliamentary Secretary to the Prime Minister and Parliamentary Secretary for Broadband.
Richard Marles, who quit his parliamentary secretary role under Julia Gillard in March, has been elevated to cabinet as Minister for Trade - Craig Emerson's former role.
Andrew Leigh, who served as parliamentary secretary to the Prime Minister, has been demoted.
He said on Sky News that he had indicated to Mr Rudd that he would be happy to serve in the ministry, however if he needed to hand in his resignation for the good of the party he would do so.
Mr Rudd also said he had elevated a record number of women to cabinet.
"This will be a great contribution to the cause of women as well as the cause of good government in Australia," he said.
Key Gillard backer Don Farrell remains in the ministry, however has taken on a new portfolio of Minister for Sport and Minister Assisting on Tourism.
Senator Kate Lundy has been moved out of sport but remains in the ministry with the Multicultural Affairs.
Don Farrell MP is sworn-in by Governor General Quentin Bryce as Minister for Sport at Government House on July 1, 2013 in Canberra, Australia. (Photo by Cole Bennetts/Getty Images) Source: Getty Images
Alan Griffin, who was also central to Mr Rudd's return to power, has been promoted into the role of cabinet secretary and is also Parliamentary Secretary to the Prime Minister.
West Australian MP Melissa Parke has been given the new portfolio of International Development.
Mr Rudd ended his press conference with his signature sign off: "I've gotta zip."
Earlier today the prime minister insisted he is a changed man and he'd be a "mug" not to have learned from his past mistakes.
In his first television interview since taking back his old job, Mr Rudd conceded he was "run a bit ragged" during his first tilt at the nation's top job, but was determined that would not happen again.
Mr Rudd said he had got himself into such a state because he was determined to meet his pre-election commitments and when the global financial crisis unexpectedly hit he found himself "trying to do two jobs".
"You'd be a mug not to learn from the past," Mr Rudd told the Seven Network's Sunrise program hours before he unveiled his new-look Cabinet.
"I've learned quite a lot from my first term as prime minister".
Mr Rudd also spoke of the circumstances that lead up to his taking back of the Labor leadership and said he didn't decide to challenge until Julia Gillard declared the position open last Wednesday.
Mr Rudd's insistence that he has changed, comes as a new Galaxy-Daily Telegraph poll has found most Australians still believe he is the chaotic and dysfunctional leaders he was accused of being in 2010.
"I think one of the things that you've got to get right is how you work the consultation processes of the cabinet and the parliamentary party as well as you can given that some decisions have to be taken rapidly," Mr Rudd said.
On deciding to challenge for the leadership Mr Rudd said he had done so because "I wanted to give us a fighting chance".
"Obviously members of the parliamentary party came in and said we want a change because we want to be competitive at the next election.
"On that particular day, after Julia had thrown open the Labor leadership I would have spoken to at least a dozen people before going out to announce that I would be a candidate and nominate."
He said, however, that he was "very relaxed" that the Australian people would judge him on his performance this time around.
SWAN HITS THE CAMPIGN TRAIL FOR KRUDD
RUDD'S NEW MINISTRY
Anthony Albanese - Deputy Prime Minister and Minister for Infrastructure and Transport, Broadband, Communications and the Digital Economy
Penny Wong - Minister for Finance and Deregulation and Leader of the Government in the Senate
Chris Bowen - Treasurer
Stephen Smith - Minister for Defence
Jenny Macklin - Minister for Families, Community Services and Indigenous Affairs and Disability Reform
Bob Carr- Minister for Foreign Affairs
Tony Burke - Minister for Immigration, Multicultural Affairs, Citizenship and the Arts
Bill Shorten - Minister for Education and Workplace Relations
Tanya Plibersek - Minister for Health and Medical Research
Mark Butler - Minister for Climate Change, Environment, Heritage and Water
Brendan O'Connor - Minister for Employment, Skills and Training
Mark Dreyfus - Attorney-General, Special Minister of State and Minister for Emergency Management, the Public Service And Integrity
Gary Gray - Minister for Resources and Energy, Tourism and Small Business
Kim Carr -Minister for Innovation, Industry, Science and Research, Higher Education
Julie Collins - Minister for Housing and Homelessness, Community Services, the Status of Women and Indigenous Employment and Economic Development
Catherine King - Minister for Regional Australia, Local Government and Territories
Joel Fitzgibbon - Minister for Agriculture, Fisheries and Forestry
Richard Marles - Minister for Trade
Jason Clare - Minister for Home Affairs and Justice
Kate Ellis - Minister for Early Childhood, Childcare and Youth and Employment Participation
Warren Snowdon - Minister for Indigenous Health, Defence Science and Personnel, Veterans' Affairs, and minister assisting the Prime Minister on the Centenary of ANZAC
David Bradbury - Assistant Treasurer, Minister for Competition Policy and Consumer Affairs, Deregulation, Financial Services and Superannuation
Kate Lundy - Minister for Multicultural Affairs, Innovation and Industry and minister Assisting for the Digital Economy
Mike Kelly -Minister for Defence Materiel
Jan McLucas - Minister for Human Services
Don Farrell -Minister for Sport and minister Assisting on Tourism
Sharon Bird - Minister for Regional Development, Regional Communications and Road Safety
Melissa Parke - Minister for International Development
Click here for a look at the full list of ministers in Mr Rudd's new Cabinet.
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