Overhauled laws governing how veterans are compensated after their service will miss a royal commission deadline.
Veterans' Affairs Minister Matt Keogh released on Wednesday draft legislation which will consolidate the various laws into one piece to provide a simpler pathway for veterans and their families to have claims processed.
The Royal Commission into Defence and Veteran Suicide's interim report recommended the government introduce the legislation to parliament by no later than early this year.
It says from July 1, the government should be implementing the new framework and by mid-2025 the legislation be fully operational.
The royal commission asked the government to consider recommendations made by the Productivity Commission, which called for three pieces of legislation to be rolled into two.
Mr Keogh said the delay was because the government going further and consolidating multiple laws into one piece of legislation.
"It was important though that we consulted extensively with the veteran community about that," he told reporters in Canberra.
"That's exactly what we have done to get to this point now."
Mr Keogh said the government would introduce the proposed legislation after consultation for the draft closes at the end of April.
From July 2026, all new claims would be dealt with under the single Military Rehabilitation and Compensation Act.
"It will make it quicker for DVA (Department of Veterans' Affairs) to assess and process claims from veterans meaning that veterans can get access to the support and payments that they need and frankly deserve," the minister said.
He said the government had informed the royal commission about its updated timeline.
Veterans who receive benefits under the current framework will have their compensation grandfathered.
Under the changes the Gold Card, which provides treatment for all medical conditions, will be expanded to more people.
The general funeral allowance will be raised by an extra $1000 to $3000.
The government has hired an extra 500 claims processing staff, which means fresh claims are being dealt with in a two-week period.
The backlog is on track to be cleared ahead of schedule, which at its peak in late 2022, reached 45,000 outstanding claims.
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