The mother who led the campaign for a royal commission into defence suicides says a 2024 deadline to clear a backlog of compensation cases is too late and injured veterans must be paid out immediately.
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Crossbench senator and veteran Jacqui Lambie has also warned that most veterans can't wait another two years to have their claims dealt with.
The interim report from the Royal Commission into Defence and Veteran Suicide has recommended a deadline of March 31, 2024, to clear a massive pile-up of compensation claims from serving personnel and veterans.
Veterans' Affairs Minister Matt Keogh hasn't committed to a timeframe for processing the almost 42,000 cases outstanding as of May 30, but said he wanted it done as soon as possible.
Mr Keogh was confident adding an extra 500 permanent staff to the Department of Veterans Affairs would be enough.
The interim report, released on Thursday, made a total of 13 recommendations to urgently tackle the "scourge" of suicide within the defence and veteran population.
Mr Keogh described the rate of suicide among veterans as a national tragedy, as he issued an apology to families who had been failed by the government.
He conceded that "something's not working" at the Department of Veterans Affairs, but backed in its senior leadership - including secretary Liz Cosson - to turn things around with the support of extra staff and resources.
The 348-page report was scathing in its criticism of the Morrison government, arguing that its failure to properly respond to a major Productivity Commission report from 2019 and simplify legislation relating to compensation claims amounted to a "dereliction of its duty to Australian veterans".
The Coalition has tried to put the pressure back on the new government, urging Prime Minister Anthony Albanese to elevate the Veterans' Affairs portfolio back into cabinet.
"Having Veteran's Affairs languishing in the outer Ministry with the Minister for Republic, does not show proper respect for the importance of this issues in need of reform," opposition veterans' affairs spokesman Barnaby Joyce said.
Former prime minister Scott Morrison announced the inquiry amid pressure from veterans and politicians in April last year, hoping it would offer a "healing" process for grieving families.
The first rounds of public hearings heard startling revelations, including a concession from Ms Cosson that the backlog claims from injured defence members and veterans might have contributed to a spike in suicides.
The latest data showed more than 1270 serving personnel and veterans had committed suicide between 2001 and 2019.
The interim report recommended simplifying and harmonising the legislation which governs compensation claims, via a bill which should be introduced no later than early 2024.
Commissioner Nick Kaldas said the system was so complicated that it adversely affected veterans' mental health and contributed to suicidal thoughts.
"We recognise that making change will not be easy, but these challenges are no justification for further delay," he said.
The interim report recommended that the Department of Veterans' Affairs be handed the resources it needs to clear the claims backlog by March 31, 2024.
Julie-Ann Finney campaigned for a royal commission after her veteran son took his own life in 2019, and has travelled around the country to attend each public hearing so far.
She said all of the outstanding claims should be paid out immediately.
"Veterans have been treated like they're liars and they're frauds. They've been lied to, they've been spun to," she told The Canberra Times.
"So [the department] should accept all of these claims, process them, do it in the next few days. The department can then use the time that it was going to use to process them to go back through them and check they're correct.
"There is a very clear link between suicidality and completed suicide in the waiting [for claims]. 2024 is just not good enough."
Senator Lambie, who described her own 10-year fight with the department during evidence last week to the commission, echoed Ms Finney's calls.
"They've given a March 2024 date to deal with the backlog of claims," she said.
"Surely we can get onto it quicker than that. Most veterans can't wait until 2024 to have their claims dealt with."
Labor went to the election promising to an extra 500 positions to the Department of Veterans' Affairs to speed up processing claims.
It has also committed to abolish the staffing cap, allowing it to hire more permanent employees and reduce a reliance on labor hire.
The interim report found the department had overused labour hire as a result of the cap, which resulted in greater staff turnover, a less proficient workforce and wasted taxpayer funds.
The union which represents department staff welcomed the commission's findings.
"The report documents the shocking backlogs and barriers our veterans face when seeking help," Community and Public Sector Union deputy president Brooke Muscat said.
"For years, the Coalition government ignored the warnings of our members in DVA about the risk to the mental health and lives of veterans caused by understaffing, delays, and veterans' claim backlogs."
"This report makes clear that there is no benefit from policies such as the staffing cap. It costs the taxpayer more, decreases secure employment, and increases backlogs and delays."
You can read the interim report here.
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Dan Jervis-Bardy
