A number of changes will take effect from Wednesday, after the federal government's implementation of recommendations made by the Royal Commission into Defence and Veteran Suicide.
Under the reform, three compensation laws will be rolled into a single scheme giving veterans and their families a streamlined system.
The complexity of the system was found to cause delays, inconsistent processing and uncertainty by the inquiry, which found this a "contributing factor to suicidality".
Veterans' Affairs Minister Matt Keogh said nobody would go backwards, and anyone currently receiving benefits will continue to do so at the same level or higher.
"Moving to one simpler scheme for our veterans makes it easier, quicker for them to get access to the support they need," he told AAP.
"We've been trying to do a number of things at the same time."
A new Veteran and Family Wellbeing Agency will be operational, and will help people navigate the system and connect them to the support services they need.
Multiple payments will also be standardised in the new financial year.
Labor has poured money into the Department of Veterans Affairs and increased staffing numbers to clear the massive backlog of 42,000 claims, which was also recommended by the royal commission.
Mr Keogh said Australia compared well against nations on veteran care such as the UK, Canada and New Zealand.
"We have a tailored system, which provides a high level of support, but also a lot of veteran choice in how that's provided," he said.
"That's an important part of not just providing a high level of service but flexibility to meet veteran need."
More than $2 billion in funding has been provided by the government to date, for measures responding to the royal commission.
On a standalone inquiry into military sexual violence that will be set up, Mr Keogh said he was waiting on recommendations from the Defence and Veterans' Service Commission to appoint someone to lead the probe.
Hearings would soon follow once an appointment is made.
"I'm very keen to move as quickly as we can on getting the inquiry commenced," he said.
Labor has committed to holding the inquiry this year.
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