Merging two courts could see an extra 8000 family law cases dealt with each year in a bid to cut blown-out waiting times and reduce trauma for families.
Families now wait for more than a year for trials in both the Family Court and the Federal Circuit Court, with cases often bouncing back and forth between the two.
Attorney-General Christian Porter says the two courts will be merged, ending the red tape that sees complex trials drag out.
"This significant structural change is designed to dramatically increase the number of family law matters finalised each and every year," Mr Porter said on Wednesday.
It's aimed at chopping the backlog of unresolved cases, giving families shorter waiting times, and reducing prolonged and acrimonious family disputes.
"Families will have one new court with one set of new rules, procedures and practices designed to ensure that their disputes will be dealt with," Mr Porter said.
As many as 22,000 family law final order cases are filed each year across the Family Court and Federal Circuit Court, while the number of matters awaiting resolution has grown from 17,200 to 21,000.
The median time taken to reach trial has grown in both courts, now sitting at 15 months in the Federal Circuit Court and 17 months in the Family Court.
"Family break-up is a traumatic time for both parties and children as well as wider family," Mr Porter said.
