Cabinet minister Alan Tudge,who has faced questions over an historical affair with a staffer,will take over the role of Education Minister from Mr Tehan,as part of a reshuffle announced by Mr Morrison in Canberra on Friday sparked by the resignation of Mathias Cormann earlier this year.
The Prime Minister will also elevate fresh faces to his frontbench including former SAS captain Andrew Hastie as the Assistant Minister for Defence and Queenslander Amanda Stoker to assist Attorney-General Christian Porter.
Immigration Minister David Coleman,who has been on family leave for more than a year dealing with a personal matter,will return to the ministry in a less senior role as Assistant Minister to the Prime Minister with responsibility for Mental Health and Suicide Prevention.
Mr Tehan takes on the role of Trade,Tourism and Investment as the escalating trade dispute between Canberra and Beijingnow covers more than $20 billion in Australian exports including barley,beef,wine and coal.
While the former Department of Foreign Affairs and Trade mandarin will try to calm tensions with Beijing,a key task will be to find alternative markets for Australian exports including inking free trade agreements with Britain and the EU next year.
Mr Morrison said Mr Tehan would continue with the approach of current Trade Minister Simon Birmingham,who this week announced Australia would take Beijing to the World Trade Organisation over its trade strikes on Australian barley.