On 11 September 2010, Lundy was appointed Parliamentary Secretary for Immigration and Citizenship as well as Parliamentary Secretary to the Prime Minister and Cabinet as part of the original Second Gillard Ministry. In a subsequent reshuffle in March 2012, Lundy was appointed as the Minister for Sport following the retirement of Senator Mark Arbib, and she was also made Minister for Multicultural Affairs, and Minister Assisting the Minister for Industry and Innovation. On 1 July 2013, as part of the Second Rudd Ministry, Lundy retained the portfolio of Multicultural Affairs and gained the portfolio of Minister Assisting for the Digital Economy. Don Farrell was appointed as Minister for Sport.