The Morrison government is promising to reduce the backlog of support claims by veterans and families.
The Department of Veterans Affairs delivers support to about 240,000 veterans and around 100,000 dependants.
Veterans Affairs Minister Andrew Gee said $22.8 million would provide an extra 90 staff to cut the backlog of unprocessed claims, with a further $73.2 million to further improve claims processing and reduce waiting times.
"The women and men who serve this nation in uniform make incredible sacrifices for our country and we are ensuring that we repay our debt to them by providing the support they, and their families, need," he said.
The budget sets aside an additional $165 million for wellbeing grants and services, such as the Psychiatric Assistance Dog Program for veterans with post-traumatic stress disorder and the network of Veteran Wellbeing Centres.
As well, $70.5 million will increase the sustainability of Veteran Home Care Services so that they can continue to deliver stable and high-quality care for more than 37,000 veterans and their families.
Funding of $26.6 million will be delivered to honour veterans and commemorate Australia's military history, including the centenary of the Legacy organisation and a new Sandakan Memorial Park in Borneo.
The department will also roll out a pilot program over the next two years to provide chaplaincy support to veterans and their families post-service.
The royal commission into defence and veteran suicide will receive $50 million over the next financial year as it continues its work.
