A major report into support for Australian veterans says the $13.2 billion system is too complex, poorly run and fails to meet the needs to those it is intended to help.
The Productivity Commission report released on Thursday dropped an earlier proposal to scrap the Department of Veterans' Affairs altogether, but was still scathing of the "ineffective" system - calling for a new statutory agency, the Veterans Services Commission.
About 166,000 veterans and 117,000 dependants are supported by the system, some parts of which date back to the 1920s.
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