As of July, the permanent and full-time defence workforce reached just over 61,100 people.
Defence enlisted more than 7000 full-time personnel in 2024/25, which is the highest annual intake in more than 15 years, and a 17 per cent increase from 2023.
The federal government aims to reach 69,000 permanent defence force personnel by the early 2030s and has introduced targeted initiatives to address declining recruitment.
Significant investments had helped support current defence workers and grow the force for the future, Deputy Prime Minister Richard Marles said.
"Throughout the near-decade the coalition was in office, the Australian Defence Force (ADF) grew by just 2000 people," he said.
"In 2025, the ADF is now growing again for the first time in almost four years, (and) while there is much more work to do, we are confident these positive trends will continue."
More than 75,000 applications to join the ADF were received in the past 12 months, the highest number in five years.
The government has invested in pay rises for critical skills and reformed the recruitment system to streamline the process.
Eligibility has also been expanded to permanent residents from the Five Eyes partner countries of Canada, New Zealand, the United Kingdom and the United States.
"Thanks to our recruitment and retention initiatives the ADF is seeing increased applications, enlistments and more people staying in service than we have in years," Defence Personnel Minister Matt Keogh said.
"These efforts are complemented by our ongoing efforts to retain our personnel in service for longer, with improvements to how Defence personnel and their families are supported at work and at home."