Labor leader Simon Crean yesterday moved to redefine the party as a provider of prosperity and hope, announcing a front bench that elevated the small business portfolio into the shadow cabinet, and creating another aimed at encouraging share ownership.

The new strategy is aimed at attracting aspiring middle-class voters, and at modernising the party after its bruising election defeat.

Mr Crean also had a warning yesterday for trade union officials threatening to withhold donations if he reviewed the rule that allowed unions 60 per cent of the votes at party conferences. He would not be blackmailed by union leaders, he said, adding that the Labor Party "won't be run by anyone".

And he advised his new front bench team "to be bold", to develop challenging new policies and to ensure the policies were properly communicated - unlike the complex diagram drawn by ALP elder statesman Barry Jones to illustrate "knowledge nation" policies but which was lampooned during the election campaign as "noodle nation".

Mr Crean appointed the factionally non-aligned Bob McMullan as treasury, finance and small business spokesman. He will be pitted against Peter Costello. In a bold move, Mr Crean promoted Victorian backbencher Julia Gillard from the back bench straight into shadow cabinet as spokeswoman on the sensitive population and immigration portfolio.

His deputy, Victorian Jenny Macklin, will be the spokeswoman on employment, education, training and science, while political strategist Stephen Smith, of Western Australia, has been given responsibility for health and ageing.

Mr Crean also appointed Queenslander Wayne Swan to the key opposition business tactical position against Tony Abbott, Craig Emerson to the crucial innovation, industry, trade and tourism job, Victorian Kelvin Thompson to the environment job, and outspoken left-wing Victorian Lindsay Tanner to communications, which includes Telstra and media ownership rules.

Mr Tanner has previously called for Telstra to be broken up, with its core services kept under government ownership, with other services, such as mobile phones, being privatised. But Mr Tanner told The Age he now agreed with Mr Crean's position that Telstra should not be privatised.

Maverick backbencher Mark Latham has been resurrected to the front bench as spokesman on urban development, housing and economic ownership to develop incentives for home and share ownership by so-called "aspirational voters" who shifted to the Coalition in the election.

Mr Latham said he was happy to be on the front bench, and was encouraged by Mr Crean's comment that the controversial backbencher was "not yet" on the A-team.

Mr Crean put all his frontbenchers on notice that they were on trial and could be moved before the next election.

Keen to be seen as a leader setting the agenda with an early release of policies Mr Crean promised to have new policy proposals when parliament reconvenes in February next year.

He cast doubt on keeping Labor's election centrepiece policy of removing the GST from power bills.