Malcolm Turnbull will resign on Friday

Australia’s foreign minister quits. How will her replacement deal with China?

In the wash up, Prime Minister Morrison has now announced a new cabinet and Foreign Affairs Minister Julie Bishop has resigned.

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

One of the casualties was Labor's Julia Gillard, Australia's first female leader, who constantly battled misogyny and made global headlines for her fiery rebuttal of then Liberal opposition leader Tony Abbott in parliament in 2012. The challenge had been instigated by home affairs minister Peter Dutton, whom Morrison defeated in a secret ballot.

"I thank Julie for her support, guidance, and superb leadership".

The American Peter Dutton found himself caught in the crossfire of Australian politics recently and has been having fun with the case of mistaken identity.

"I have a strong view which I've made very clear publicly so it comes as no surprise, that former prime ministers are best out of parliament not in it, and I think recent events best underline the value of that observation". Bishop, who represents the Liberal Party, has led the foreign ministry since 2013.

Simon Birmingham assumed Ciobo's former role as trade minister and Dan Tehan was named as minister of education.

The environment and energy portfolio, which was held by the man who is now Treasurer Josh Frydenberg, was also broken up in an acknowledgement of the tensions the two issues caused within the party.

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Morrison has a one-seat majority, but will face a by-election when Turnbull resigns from parliament, which ABC news reported could be as early as later this week. Moderate Christopher Pyne was promoted to defence minister. The circumstances have appalled most Australians but again, I won't labour the point.

As for Taylor, the PM said he would be looking forward to the new Energy minister to "bring the prices down" as it was part of the minister's job.

"But as you know, my prime ministership has come to an end".

'We've communicated. He was on his way to Quilpie [a drought-affected Queensland town], and we'll be talking in the days ahead, ' he said.

Leaked screenshots from the group titled "friends for stability" allege Mathias Cormann, whose support of Mr Dutton was pivotal in enabling the leadership spill, had secured votes for Ms Bishop in order to keep Mr Morrison out of the race.

Promising a stable government, Morrison said, "We will provide the stability and the unity and the direction and the goal that the Australian people expect of us".

In 2015 the Abbott camp felt betrayed, believing that Scott Morrison had not backed him wholeheartedly, despite being a Christian conservative.

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