Former Dunedin man, and Wellington Central MP, Grant Robertson has also taken a large step up in seniority, moving to the front bench and taking over the role of health spokesman for the Opposition.
Mr Robertson has been one of the top performers for Labour and his enthusiasm, and wide knowledge of politics generally, has seen him rewarded.
Mr Parker moves to four from 10 on the Labour ranking behind Mr Goff, deputy leader Annette King and finance spokesman David Cunliffe.
Surprisingly, Mr Goff dropped Parekura Horomia down from fifth to 10th in seniority, a message to the former Maori affairs minister that his performance this term has been far from satisfactory.
Mr Horomia is one of only two Labour MPs to hold Maori electorates, with the rest held by the Maori Party.
The other MP, Nanaia Mahuta, had earlier indicated her wish to spend more time with her young family and work in her large electorate leading up to the election.
Mr Goff risks alienating even more Maori voters with his demotion of Mr Horomia, who has given no indication he intends retiring at the next election on November 26.
Ruth Dyson drops down to fifth to make way for Mr Parker, a surprise as it had been believed Ms Dyson would move to the backbench.
Others to receive the nod of approval from Mr Goff were Charles Chauvel who takes on justice, and Shane Jones - back in favour after charging porn movies to his ministerial credit card - who is 13th and takes on transport and infrastructure. Also favoured are Sue Moroney, Su'a William Sio, Jacinda Ardern and Phil Twyford.
Dunedin South MP Clare Curran is unchanged in ranking, retaining her communications role and taking on broadcasting.
Retiring Dunedin North MP Pete Hodgson has no direct responsibilities but will surely be helping Mr Goff find ammunition with which to attack National.
Mr Goff said the new line-up provided a mix of experience and proven performers while showing off some of the party's new talent.
"MPs who have proven themselves as ministers in the past continue to have a strong presence on the front bench.
But newer MPs with fresh ideas and energy have also been promoted."
Mr Robertson had made a strong impact in a short time, Mr Goff said. He was a first-term MP but had proved to be a formidable performer who could quickly grasp the issues.
Mr Parker moved up based on his strong performance in policy development and his portfolios. Mr Parker becomes associate finance spokesman for Labour.
The rise of Mr Jones came after a difficult time last year and recognised the hard work he had been putting in, and the fact he was a talented politician, Mr Goff said.
