The Albanese government on Monday released its response to the Royal Commission into Defence and Veteran Suicide's final report, rejecting one of the 122 recommendations.
One-hundred and four were agreed to, or accepted in principle.
Labor does not support changing the rule which gives higher levels of compensation for injuries or illnesses incurred during operations, distinct from training.
The issue of service in war-like conditions remains highly controversial within the veteran community, with some wanting to keep the service differential to compensation in place.
An independent inquiry will be held into sexual violence in the Australian military. (Bianca De Marchi/AAP PHOTOS)
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.
A policy of discharging personnel convicted of sexual offences, including harassment or intimate image abuse, will be implemented - regardless of whether the conviction is under the military justice system or civilian courts.Â
But they will be able to argue why they shouldn't be kicked out of the military, and still possibly remain in the ADF.
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.
Defence Minister Richard Marles says the response will result in systemic and enduring reforms. (Mick Tsikas/AAP PHOTOS)
Anonymised sexual misconduct data should be published each year of all incidents and outcomes, the response reads.
A new statutory body overseeing the reform will be set up immediately, with an interim head to be appointed as soon as possible to help the establishment of a legislated one by September 2025.
The Inspector-General of the ADF should initiate an inquiry into the weaponisation of the military justice system, which Defence rejected was taking place during hearings of the royal commission.
Prime Minister Anthony Albanese said the nation had "lost too many lives and every single one is heartbreaking".
Defence Minister Richard Marles said any death by suicide for serving personnel or veterans was a "national tragedy".
"(It) is our plan for systemic and enduring reform to make sure we are supporting our Defence and veteran communities," he said.
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