Lundy had held the post since March 2012 but has now lost the role after Rudd was restored as Prime Minister following a successful challenge against Julia Gillard for leadership of the ruling Labour Party. 

Lundy, 45, has been stripped of the sports portfolio, although she remains the Minister for Multicultural Affairs and Minister Assisting for Industry and Innovation.

She is now also Minister Assisting for the Digital Economy.

At London 2012 Lundy had lost a bet with her British counterpart, Hugh Robertson, that Australia would win more Olympic medals than the host nation and as a forfeit had to row the 2,200 metres length of Eton Dorney in Team GB kit.


Farrell, a 59-year-old Senator from South Australia, is a former union leader who describes himself as a "big fan" of the West Adelaide and Adelaide Crows Australian Rules football clubs.

Lundy had last week help navigate through Senate the Bill giving the Australian Sports Anti-Doping Authority (ASADA) greater powers to help it speed up doping investigations.

"The new powers provided to ASADA are vital to the fight against doping in sport and Kate was commited to getting the Bill passed," said Coates.

"She also deserves great credit for her contribution, along with Australian Sports Commission (ASC) chair, John Wylie, to the 'Winning Edge' strategy which has broken new ground in best practice and corporate governance and allowed us to refocus for the Rio Olympics in 2016.

"Under 'Winning Edge' sports are now more accountable and they are not only judged on performance but governance.

"I look forward to working with the new Federal Sports Minister, Senator Don Farrell, and continuing to develop the ties forged with the ASC/AIS (Australian Institute for Sport) through Kate Lundy and John Wylie."

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