Daley loses Treasury in NSW Labor shake-up

Three days after being elected NSW Labor's deputy leader, Michael Daley has been unceremoniously dumped from the opposition's treasury portfolio.

The Maroubra MP - who has previously declared his desire to be Labor leader - will now take on planning and infrastructure and gaming and racing.

Opposition Leader Luke Foley, who on Monday said he wasn't worried about endorsing a former rival as his new deputy, refused to label the portfolio change a demotion.

"Michael and I talked and we agreed the greatest challenge facing our state capital, Sydney, is to manage the rapid population growth sustainably," he told reporters on Thursday.

"I want my deputy on the case, tackling that big challenge."

The shadow cabinet reshuffle was sparked by former deputy leader Linda Burney's decision to run for the federal seat of Barton ahead of the election this year.

Mr Daley said he was pleased with his status.

"I hold the second most senior position in the Labor party in the state of NSW and that's something I'm very happy about," he said.

"Ultimately, portfolio allocations are up to the leader."

Premier Mike Baird said it was clear Mr Foley didn't support his deputy.

"You don't have to look far on why the (opposition) leader is under such pressure than the magnificent reshuffle we just saw," Mr Baird told NSW parliament on Thursday.

"What has he got against his deputy leader for heaven's sake?"

Kiera MP Ryan Park will now be in charge of the highly regarded treasury portfolio.

First-term MP and former high school principal Jihad Dib will take over education, while ambitious frontbencher Jodi McKay has taken on transport.

Other new faces include Prue Car, Yasmin Catley, Jenny Aitchison and Chris Minns.

Mr Foley said he was proud to have nine women on Labor's front bench.

"This is a historic moment. The day is in sight when the cabinet of NSW will be comprised of 50 per cent women," he said.

Opposition health spokesman Walt Secord also added arts to his health and north coast portfolios and Guy Zangari will take responsibility for justice and police.