In a bold cabinet reshuffle on Tuesday, Mr Carroll scrapped several portfolios including transport infrastructure, the Suburban Rail Loop, cost of living and men and boys.
The premier said cost of living would be a "driving force" of every ministry and denied losing the dedicated rail loop portfolio meant the $34.5 billion east section of the project would be scaled back.
"We are running a smaller government, a more efficient and more effective government where it extracts the best value for taxpayers," he told reporters after a swearing-in ceremony.
Frankston MP Paul Edbrooke takes control of police from Anthony Carbines, who becomes the inaugural minister for artificial intelligence and digital economy.
The daunting task of sealing a new pay and conditions deal with aggrieved public school teachers has been handed to Deputy Premier Gabrielle Williams, who grabs the education portfolio from Mr Carroll.
Ms Williams said progressing talks with the education union would be a "first-order issue", but would not be drawn on whether a revised offer would be put on the table before a third planned statewide strike on August 19.
After delivering her second Victorian budget in May, the Labor government's upper house leader Jaclyn Symes has been replaced as treasurer by Colin Brooks.
Ms Symes has been sworn in as energy and resources minister after succeeding Lily D'Ambrosio, who alongside health minister Harriet Shing stepped down from cabinet on Thursday after Jacinta Allan was ousted as premier.
Mental Health Minister Ingrid Stitt will add health to her list of responsibilities, while Mordialloc MP Tim Richardson will watch over local government, consumer affairs and renters as the only fresh face elevated to cabinet.
Two polls conducted after Mr Carroll's appointment to the top job indicate the leadership swap is yet to sway voters ahead of the November election.
Labor's primary vote has still dipped three percentage points to 23 per cent, according to the latest Redbridge/Accent Research poll published in the Australian Financial Review on Tuesday.
But another poll by Freshwater Strategy for the Herald Sun showed support for Labor was up to 25 per cent, two points higher than in June.
Often a leadership change could immediately boost a party's primary vote, psephologist Kevin Bonham said.
"We're not seeing that in this case, suggesting that despite Jacinta Allan's very bad personal approval scores, the problem is deeper," he told AAP.
The coalition remained in the box seat to win the November 28 election, Mr Bonham said.
"It's not looking very good for Labor," he said.
"They're substantially behind."
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