Jacinta Nampijinpa Price was sacked from her shadow portfolios for suggesting the government favoured Indian migrants because they voted Labor, prompting Liberal leader Sussan Ley to demand her resignation.
On Sunday, Ms Ley elevated Tasmania senator Claire Chandler to the shadow ministry, taking both the cyber security and science portfolios.
Lower-house MP Melissa Price will shift to take Senator Nampijinpa Price's roles of defence industry and defence personnel, having previously been a minister in the former coalition government.
"In recent months, Senator Chandler has worked diligently in prosecuting Labor's national security missteps … she has a deep passion for the subject matter in both these important portfolios," Ms Ley said.
"As a former minister in the portfolio, (Ms Price) brings crucial experience to these responsibilities."
Senator Nampijinpa Price was dumped after she repeatedly failed to declare confidence in Ms Ley's leadership.
She instead maintained she was trying to make a point on "mass migration", views that have hurt Australia's Indian community.
Ms Ley said the senator failed to meet expected standards.
"Despite being given sufficient time and space to do so, Senator Nampijinpa Price failed to apologise for remarks which have caused Australians of Indian heritage significant hurt," she said.
Cook MP Simon Kennedy also joined shadow cabinet in Sunday's reshuffle.
He was appointed to the freshly created portfolios of artificial intelligence, digital economy and scrutiny of government waste.
Richard Colbeck took Senator Chandler's role as Senate co-chair of the Liberal legislative committee, while Gisele Kapterian could become a shadow assistant minister if she wins a court challenge to overturn her unsuccessful electoral bid.
Senator Nampijinpa Price rose to prominence as a vocal advocate for the 'No' campaign during the Indigenous voice to parliament referendum.
Former opposition leader Peter Dutton appointed her shadow minister for Indigenous Australians, while she switched from the Nationals to sit with the Liberals in the coalition earlier this year after harbouring leadership ambitions.
Ms Ley refused to answer questions last week on whether the senator would be recalled to the front bench in the future.
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