Roundup: Abbott allies set to be sidelined under new Australian PM's reshuffle

Several key supporters of ousted prime minister Tony Abbott were likely losing their ministerial portfolios or having them downgraded in a planned cabinet reshuffle announced by Prime Minister Malcolm Turnbull.

In the wake of the Liberal party's leadership spill on Monday night, Turnbull said he would be announcing changes to the party's front bench early next week, with a number of key positions under review.

Treasurer Joe Hockey, a strong Abbott ally, is one minister with his job in doubt. Local media had reported that portfolio had been offered to Social Services Minister Scott Morrison, with Hockey tipped to stay on the front bench, but in the Communications position, taking over from Turnbull.

But on Wednesday, Hockey said he wasn't being drawn into what he described as rumors about his Treasury position.

"I've had discussions with the prime minister," he told reporters in Canberra. "We'll leave it at that. We'll see what happens."

"I am instinctively a loyal person. You know that. And I see the job that I have as one being loyal to the Australian people."

Education Minister Christopher Pyne could be moved along the bench to the Defence position as key Abbott supporters - Defense Minister) Kevin Andrews and Employment Minister Eric Abetz - could be moved on.

Meanwhile Immigration Minister Peter Dutton has resigned from his role on Wednesday, following revelations he voted for Tony Abbott at the Liberal party room ballot.

Dutton drew criticism last week for a gaffe caught on camera, in which he joked about climate change affecting Pacific nations. Turnbull said he had not spoken to Dutton about the resignations.

Media outlets are reporting that West Australian MP Michaelia Cash is expected to take over from Dutton in a move expected to bring greater female representation to the cabinet positions.

However Turnbull said a lot of key decisions were yet to be made, and he would not be traveling to the crucial Canning by- election, instead, to focus on getting his "ministerial arrangements" in order.

"There is no greater enthusiast than me for seeing more women in positions of power and influence in parliament, in ministries right across the country," he said.

"I can assure you that. I am very committed to that, but I am not going to say any more about the new ministerial arrangements."

Trade Minister Andrew Robb and Finance Minister Mathias Cormann are both expected to maintain their position despite voting for Abbott at the party room ballot on Monday.

Meanwhile, Attorney-General George Brandis said ministers had accepted that there would be sweeping changes to the front bench, telling the Australian Broadcasting Corporation (ABC) there would "be something wrong" if there was no change made.

He labeled Turnbull's decision to challenge for the leadership as necessary, telling the ABC that allowing Labor to win at the next election would be "catastrophic."

He believed under Abbott's leadership that was certain to happen.

"I was becoming increasingly concerned that the position was becoming irretrievable in relation to Mr Abbott's leadership and that we were at real risk of losing next year's election to Bill Shorten. That would be a catastrophe for Australia," Brandis said on Tuesday night.

"The thing about Malcolm Turnbull, he is a person with a very bold and optimistic sense of Australia's future that I think will resonate very well with the Australian people."

Brandis also highlighted the importance of a Liberal government to the China-Australia free trade agreement, warning if Labor was voted in, it would be "disastrous" for the "great economic opportunity" it brought with it.

"Under no circumstances can we Liberals countenance the possibility of Labor sneaking back into government next year with their disastrous policies, their new embrace of a xenophobic economic policy, their threat to trash the Chinese free trade agreement, one of the great economic opportunities that Australia' s ever been presented with," he said.

"We cannot put that at risk." Endi