"It will examine all aspects of service in the Australian Defence Force and the experience of those transitioning from active service," Prime Minister Scott Morrison said.

READ MORE: Support grows for royal commission calls

"The availability and quality of health and support services, the pre-service and post-service issues for members and veterans, social and family contexts such as family breakdown, as well as housing and employment issues for members and veterans."

The draft terms of reference for consultation are set to be released shortly.

The announcement comes after significant work by those on both sides of politics and those in the defence industry.

Tasmanian senator Jacqui Lambie has long called for the royal commission, and said that it would give a chance for healing and closure for many.

"Today veterans across the country can breathe a sigh of relief. We can finally let go of the weight we've been carrying on our shoulders, at least a little bit," she said.

"This royal commission is so desperately needed, but it can't undo the damage that's been done. It can't bring back the people we've lost. It can't mend the families who have been broken."

Ms Lambie thanked the veterans and their families that fought for years for the royal commission.

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"I'm so grateful to you all. You know who you are," she said

"This announcement is for you. It's for anyone who has been touched by defence and veteran suicide -- any parent, any mate, any family member who has lost a loved one.

"It belongs to the serving and ex-serving members who couldn't make it, and to the ones who were lucky to pull through."

She said there was a long way to go - with this just day one of the journey.

"But I know this news will give strength and hope to veterans and their families who are on their last legs. I'll be standing with them, making sure they get the royal commission they need. I'll give evidence beside them," she said.

"We can all rest a little easier tonight knowing that our time to be heard is coming. This is the first step to getting veterans the justice they deserve."

MORE TO COME.

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