Arthur Sinodinos has been announced as Australia’s new Innovation minister.

He replaces Greg Hunt who has taken the Health portfolio left vacant by departing minister Sussan Ley. She resigned last week following scrutiny over accusations she used a tax-payer funded work trip to purchase an investment unit on Queensland’s Gold Coast.

Prime Minister Malcolm Turnbull formally announced the appointment of Sinodinos as the Minister for Industry, Innovation and Science, earlier this morning.

“This portfolio is critical to generating the jobs of the future,” said Turnbull who laregly based his last election campaign on Australia's need to drive innovation.

“Senator Sinodinos' extensive public policy experience over many, many years gives him a strong understanding of the key drivers of new sources of economic growth, and how government can ensure its policies deliver the innovation, the investment, the technology that will secure the future for our children and grandchildren.”

Sinodinos was the chief of staff to former PM John Howard for nine years and later worked as a banker.