The federal government on Monday released its response to the Royal Commission into Defence and Veteran Suicide, agreeing to the majority of the 122 recommendations made.
One-hundred and four were agreed to, or accepted in principle.
Labor has rejected changing the rules which gives more compensation for injuries incurred during operations, as opposed to those hurt during training.
The issue of service in war-like conditions remains highly controversial within the veteran community, with some wanting to keep the different standards in place.
An independent inquiry will be held into sexual violence in the Australian military. (Dave Hunt/AAP PHOTOS)
A new statutory body overseeing the reform of Defence and veterans' affairs will be set up immediately, with an interim head to be appointed as soon as possible, before the body is legislated by September 2025.
The royal commission found sexual misconduct remained a systemic issue for the Australian Defence Force, with the government agreeing to a future standalone inquiry into the issue.
The government is working through the detail, with no set date for the start of the probe into sexual violence.
A new "presumption" of discharge will be introduced for troops convicted of sexual offences, including harassment or intimate image abuse, regardless of whether the conviction is under the military justice system or civilian courts.
But they will be able to argue why they shouldn't be kicked out of the military, and still possibly remain in the ADF.
Asked about the scale of sexual violence in the military, the prime minister said "quite clearly we need to do better".
Prime Minister Anthony Albanese says much needs to be done to help defence personnel and veterans. (Lukas Coch/AAP PHOTOS)
"We now have a clear direction being made as a result of the recommendations of the royal commission, but also of the government's response," Mr Albanese told reporters.
The inquiry found defence force personnel convicted of sexual crimes under the military justice system remained in service and when members were convicted of offences, they weren't transferred to civilian records.
The government agrees victim-survivors should not be posted with their perpetrators over the course of their careers.
Anonymised sexual misconduct data should be published each year of all incidents and outcomes, the response reads.
The government "noted" the finding that the Inspector-General of the ADF should not have previously served in uniform.
Mr Albanese spoke of the royal commission's finding that 1677 serving and former serving defence personnel had died by suicide between 1997 and 2021 - more than 20 times the number killed in active duty over the same period.
"Every single one of them is heartbreaking, and I want to conclude by acknowledging that today will be triggering for many families as well ... it will be a really difficult day," he said.
Defence Minister Richard Marles said any death by suicide for serving personnel or veterans was a "national tragedy".
Julie-Ann Finney led the push for a royal commission after her son David took his life in 2019. (Mick Tsikas/AAP PHOTOS)
Independent senator Jacqui Lambie, an army veteran, welcomed the government's quick response to the royal commission.
"Veterans, their families and mothers like Julie-Ann Finney fought for years for justice and I thank them for their fight," she said.
Senator Lambie, who advocated for a royal commission, said it was essential the statutory body be independent and provide "frank and fearless" advice to the government.
Ms Finney led the push to set up a royal commission, after her son David - a navy veteran - took his life in 2019.
RSL Australia national president Greg Melick said the implementation of the recommendations would best be achieved by an independent and enduring body.
"The RSL is indebted to every individual who shared their story and stands ready to work with the government to play its part in bringing about meaningful change," he said.
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