The Royal Commission into Defence and Veteran Suicide on Thursday released a 300-page interim report, including 13 recommendations.
Among those points was a call to reduce the backlog of claims being considered by the Department of Veterans' Affairs, which evidence suggests has ballooned to thousands of cases.
The recommendations include that the backlog be cleared by March 2024.
The department's systems and slow processing methods have been linked to added trauma for Australia's veteran population across the months of evidence presented to the royal commission.
The Australian Defence Force's culture has also come under the spotlight.
"We are concerned about a range of cultural issues within the ADF, and the negative impacts that these have had and continue to have," the commissioners wrote in the report.
"Our preliminary observations about culture include discussing abuse as a risk factor for suicide and suicidality, the progress and monitoring of cultural reform in defence, recent inclusion and diversity initiatives, the adequacy of reporting and support systems, and accountability."
The federal government welcomed the report.
"We are committed to a better future for our serving personnel, veterans and families," Veterans' Affairs Minister Matt Keogh said after the report's release, adding that Australia's rate of veteran suicide is a national tragedy.
The commissioners flagged their "dismay" that so little action has been taken to reform the dysfunctional support services for defence members and veterans, despite clear links between poor service and high suicide rates.
Despite there having been 50 previous reports and more than 750 recommendations since 2000, little action has been taken by the force and department to address growing concerns about suicide rates.
"We have been dismayed to come to understand the limited ways that Australian governments have responded to these previous inquiries and reports," the commissioners wrote.
Urgent recommendations in the report include a call to simplify veteran compensation and rehabilitation legislation by no later than July 2024.
It also called on the government to reform and improve the administration of the department's compensation claims system by then.
The department's cap on service staff should be scrapped, the report added.
This recommendation reflects evidence before the inquiry that the department's heavy reliance on contractors and poorly trained casual staff was a major factor in processing delays.
The report said the department had 41,799 claims in its backlog as of May 31.
"We have heard from many veterans and families that the claims system is complex and difficult to navigate and that veterans wait for long periods of time to receive a decision about their claims - sometimes more than 300 days," the report said.
"The backlog should not be allowed to continue."
The findings are based on evidence gathered by chairman Nick Kaldas and fellow commissioners during eight months of private and public hearings across the nation.
Witnesses made startling revelations, including a frank admission to the inquiry by department secretary Liz Cosson that the claims system was not fit for the needs of veterans and defence members.
She conceded this had caused such significant distress that it may have a contributed to the high rates of suicides among injured veterans.
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