While political attention is focused on Prime Minister Julia Gillard's new cabinet line-up, federal bureaucrats are also contemplating significant changes in the structure of some federal portfolios and agencies.

Anthony Albanese's portfolio of infrastructure, transport and regional development is tipped to be split up to allow for the new regional ministry offered to independent MP Rob Oakeshott.

Labor sources said the new portfolio could take in regional development and agriculture, as well as territories, which has presently been located within the Attorney-General's portfolio. It would also be necessary to look at linkages between the new portfolio and the delivery of infrastructure and key services, including health and education, to regional Australia.

Even if Mr Oakeshott does not accept the proposed ministry, Labor sources said it would still be desirable to proceed with a regional and rural affairs portfolio.

However, the critical areas of transport and infrastructure would remain in Labor hands, as would local government.

With a reduced portfolio, Mr Albanese would also be able to devote more time to his duties as Leader of the House, a vital role in the finely balanced Federal Parliament.

Labor sources also canvassed the possible merger of the climate change and environment portfolios, with Peter Garrett possibly continuing as a junior minister.

The new departmental and agency arrangements will be formalised by new Administrative Arrangements Orders drafted by the Department of the Prime Minister and Cabinet at the direction of the Prime Minister.

The Parliamentary Departments are also anticipating major changes, with the planned establishment of a Parliamentary Budget Office within the Parliamentary Library and the Department of the House of Representatives committee office, to provide an expanded range of services to committees and MPs.

For more on this story, including the reaction of the Community and Public Sector Union to the formation of a minority Labor Government, see the print edition of today's Canberra Times.