Retiring ministers farewelled with reshuffle imminent

Both overcame personal tragedies to serve decades in parliament and gave an emotional farewell alongside the prime minister on Thursday.

Anthony Albanese said the resignations would provide the opportunity for renewal on his frontbench. (Mick Tsikas/AAP PHOTOS)

Ms Burney has lived a life of firsts, including being the first Indigenous person in NSW parliament, the first Indigenous woman in the House of Representatives and the first to hold the Indigenous Affairs portfolio.

"But I won't be the last - to me, that is progress and it's time to hand the baton on," she told reporters in Sydney on Thursday.

On the failed referendum for an Indigenous voice to parliament and constitutional recognition, Ms Burney said there were silver linings in millions of Australians voting 'yes'.

She said she had given her all to reconciliation.

"I was in Redfern in 1993 when Paul Keating made his Redfern speech, on the Sydney Harbour Bridge in 2000 for the walk for reconciliation, I was in the chamber when Kevin Rudd made his apology on behalf of the Australian people in 2008," she said.

"I've seen a lot, and let me tell you that progress doesn't always move in a straight line.

"But with every passing generation, the arc bends a little bit more towards justice - I've done my bit and the time for the new generation is now."

An emotional Indigenous Australians Minister Linda Burney announced her looming retirement. (Mick Tsikas/AAP PHOTOS)

Ms Burney has had a tumultuous time in politics following the death of her 33-year-old son Binni Kirkbright-Burney in 2017

"I have been through more than my fair share of life's ups and downs but I think I've done it with kindness, grace, resilience, intelligence and integrity," she said.

Mr O'Connor also had to overcome tragedy after his wife Jodi Dack died in 2018.

He plans to spend more time at home with his daughter Una, he said as he thanked colleagues and reflected on his decades as a parliamentarian.

"If she wasn't so resilient and remarkable, I would have left the place long ago," he said.

Opposition Indigenous affairs spokeswoman Jacinta Nampijinpa Price said despite being on different sides of politics and the referendum, Ms Burney "has been driven by a burning desire to improve the lives of indigenous Australians".

Mr O'Connor's opposition counterpart Sussan Ley also wished him well in retirement and called him "a good man".

Prime Minister Anthony Albanese lauded the achievement of both his cabinet colleagues, saying they had spoken with him and agreed to step back and provide "an opportunity to refresh the frontbench".

A revised ministry will be announced in Canberra on Sunday and sworn in on Monday after Labor factions put forward their picks.

Andrew Giles is expected to be dumped by Anthony Albanese as immigration minister. (Thomas Parrish/AAP PHOTOS)

There is widespread speculation Andrew Giles will be sacked as immigration minister, after coming under fire for his handling of a High Court case that led to the release of more than 150 immigration detainees.

A factional ally of the prime minister, Mr Giles is expected to be moved sideways rather than being dropped from the outer ministry altogether.

Indigenous senator Malarndirri McCarthy is tipped to be elevated straight into cabinet to replace Ms Burney, leaving one more Left faction place.

Mr Albanese's confidant Pat Conroy is seen as the next cab off the rank to be elevated into cabinet, which would open up a spot in the outer ministry.

Assistant ministers Tim Ayres, Jenny McAllister and Anthony Chisholm are all in contention for a promotion.