Mr Carlaw, who was formally elected leader last Friday, said his new team will take on the SNP and offer Scotland a "genuine alternative" as he unveiled the changes today.
Mrs Ballantyne finds herself without an opposition brief, but will instead become convenor of Holyrood's Economy, Fair Work and Culture committee.
The leadership election turned nasty with Mr Carlaw known to have been angered over Ms Ballantyne's criticism of the general election campaign in Scotland which which the Eastwood MSP spearheaded, as interim leader.
Mid Scotland Fife MSP Murdo Fraser takes over as party Constitution spokesman moving from his previous Finance brief, with Adam Tomkins making way as he takes over a new strategy role.
Liz Smith also becomes chief whip, with Donald Cameron takes over the Education brief.
Graham Simpson moves into the shadow cabinet with the remit of tackling homelessness which also includes Ms Ballantyne's former social security brief.
Mr Carlaw said: “I said during the leadership campaign that I wanted to press the positive case for the union across all areas of political debate, and that’s exactly what Murdo Fraser – one of Holyrood’s most senior and respected MSPs - will be doing
“I also promised to prioritise areas like housing – such a critical area for young people across the country – which is why I’ve included that role within the shadow cabinet.
“It’s simply not enough for us to be a strong and effective opposition anymore.
“We need to prove to the people of Scotland that we’re a government in waiting, and that’s exactly what I intend to do over the next 15 months.
“The SNP has failed to put Scotland’s best interests first, and has overseen a deterioration in almost every area in which it has responsibility.
Further appointments in shadow junior minister roles and in other areas of responsibility will be made in coming days.
The new Scottish Conservative shadow cabinet team at Holyrood is as follows:
Leader – Jackson Carlaw MSP
Deputy Leaders - Shadow Cabinet Secretary for Justice – Liam Kerr MSP; Shadow Cabinet Secretary for Climate Change, Environment, Land Reform and COP26 - Annie Wells MSP
Chief Whip – Liz Smith MSP
Deputy Whip – Alexander Stewart MSP
Shadow Cabinet Secretary for Finance – Donald Cameron MSP
Shadow Minister for Finance – Alexander Burnett MSP
Shadow Cabinet Secretary for the Constitution and External Affairs – Murdo Fraser MSP
Shadow Minister for Constitution and External Affairs – Oliver Mundell MSP
Shadow Cabinet Secretary for Health – Miles Briggs MSP
Shadow Cabinet Minister for Health – Brian Whittle MSP
Shadow Cabinet Secretary for Education – Jamie Greene MSP
Shadow Minister for Education – Jamie Halcro Johnston MSP
Shadow Cabinet Secretary for Economy, Fair Work and Culture – Maurice Golden MSP
Shadow Minister for Economy, Fair Work and Culture – Alison Harris MSP
Shadow Cabinet Secretary for Business, Infrastructure and Transport – Dean Lockhart MSP
Shadow Minister for Business, Infrastructure and Transport – Gordon Lindhurst MSP
Shadow Cabinet Secretary for Rural Economy and Tourism – Rachael Hamilton MSP
Shadow Minister for Rural Economy and Tourism – Peter Chapman MSP
Shadow Cabinet Secretary for Housing, Communities and Social Security – Graham Simpson MSP
Shadow Minister for Housing, Communities and Social Security – Jeremy Balfour MSP
Shadow Cabinet Secretary for Strategy – Adam Tomkins MSP
Shadow Minister for Climate Change, Environment, Land Reform and COP26 – Finlay Carson MSP
Economy, Fair Work and Culture – Michelle Ballantyne MSP*
Rural Economy & Connectivity – Edward Mountain MSP
Justice – Margaret Mitchell MSP
Delegated Powers & Law Reform – Bill Bowman MSP*
Vice Chairmen for Campaigning
Miles Briggs MSP
Alexander Burnett MSP