The Royal Commission into Defence and Veteran Suicide handed down an interim report last year which made 13 urgent recommendations, including eliminating the massive backlog of compensation claims by March 2024.
Veterans' Affairs Minister Matt Keogh has provided an update of the government's progress on the recommendations.
The backlog is currently defined as any claim submitted to the Department of Veterans' Affairs, regardless of how old it is.
The report shows for claims in the initial liability category - when the compensation claim is first lodged - the department expects this to be cleared by the end of the year, months ahead of schedule.
But for the permanent impairment category - the secondary stage of the process - the deadline might not be met.
"The permanent impairment portion of the total backlog is more challenging and may take a few months longer than March 2024 to clear," the report reads.
"All efforts are being made to accelerate processing of permanent impairment claims."
The latest data shows the total number of outstanding claims as of July is 30,108.
This has been slashed down from the height of the logjam in September 2022, when there were more than 45,000 claims waiting to be processed.
For the initial liability category in July there were 17,711 compensation requests, while the permanent impairment backlog was at 12,041.
The number of outstanding claims has dropped for consecutive months from May through to July.
Mr Keogh said the government was taking the royal commission and its findings "extremely seriously".
"I'm determined to make sure the government delivers the services and supports our defence personnel need and deserve," he told AAP.
"It's why we responded quickly to the interim report and why we have now taken action on each of the recommendations of that report."
The government has invested $233.9 million over four years to hire an additional 500 staff to process the claims. It's expected recruitment of the workers will be completed by October.
As of June there were 754 full-time workers completing the processing work.
The government's response shows all but two recommendations have been implemented or are in progress.
Recommendations made to provide exemption from parliamentary privilege and limit public interest immunity claims have been noted by the government.
The government released the nation's first veteran transition strategy, to better support veterans' and their families move to civilian life after service.
The strategy can change as needed and in response to the findings and recommendations in the royal commission's final report, which is due in mid-2024.
An overhaul of laws governing how military veterans are compensated after their service was previously announced, to provide a simpler pathway for them and their families.
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