After 17 years in Parliament, Bill Shorten is stepping away from politics to help develop a new generation of leaders.

The former Labor leader announced on Thursday that he was retiring and revealed he would be appointed vice-chancellor of the University of Canberra.

“Education is the modern way to take someone from a disadvantaged position and make them better in a way that no other method can do, and universities play a key role in that,” he told reporters in Canberra.

“The hopes and dreams of Australians come true when they are able to fulfil their potential, and the hopes and dreams of our nation come true too.

“For me, this is an honest start to the action.”

Mr Shorten will take up his new role in February but will remain with the ministry until then.

Prime Minister Anthony Albanese thanked Mr Shorten for his work and paid tribute to his distinguished career.

“He united the party, revitalised the parliamentary caucus, got rid of two prime ministers and transformed Labour into a strong opposition and a real alternative government,” he said on Thursday.

“Throughout his years as a leader, no one has worked harder than Bill.

“No one has put so much energy, enthusiasm, ideas and ambition into championing the need for a Labour government.”

Mr Shorten led the Australian Labor Party from 2013 to 2019 and has been the MP for the Melbourne electorate of Maribyrnong since 2007.

He was appointed to this position in the governments of Kevin Rudd and Julia Gillard, before becoming Leader of the Opposition.

But when the Liberals won a surprise victory in the 2019 election, Mr Shorten stepped down and Mr Albanese took his place.

Following Labor’s victory in the 2022 federal election, he returned to cabinet as Minister for National Disability Insurance and Government Services.

Mr Shorten said he still has a long way to go but is proud of all he has achieved.

“I have had the incredible honor of serving as leader of our party and movement, which has become an irreplaceable part of my life,” he said at a news conference.

“Labour is at its best when it is a party of ambition and compassion, when it uses the power of politics to defend those denied power by the circumstances of their birth.

“This is what drives our entire government, this is what drives me every day.”

For years, Mr Shorten has stood up for welfare claimants, speaking out against the unlawful debt collection system operated by the previous Coalition government.

However, he has faced criticism from disability rights advocates over proposed changes to the NDIS.

Asked if he had any regrets, Mr Shorten referred to a nostalgic ballad by Frank Sinatra.

“I have regrets, I’ve had a few, but again, not enough to mention. I did what I had to do, but more than that, I did it my way,” Mr Shorten said.

Before entering politics, the former Labor leader was an influential union figure, having been elected state secretary of the Australian Workers Union in Victoria and later national secretary.

Mr Shorten became a national figure as a negotiator over the Beaconsfield mine collapse in 2006.

Opposition Leader Peter Dutton recognised the contribution of the former Labor leader and congratulated him on his work in Parliament.

“He had a disappointing end… when he was leader of the opposition, but he quickly recovered and showed dignity and respect for our democratic process and he deserves credit for that,” he told reporters in Sydney.