Afghanistan war veterans and their families will be studied to assess the impact of military service and combat on their mental health.
The Abbott government says it will be the most comprehensive study of the wellbeing of current and former defence personnel and their families from recent conflicts.
Veterans Affairs Minister Michael Ronaldson says the government is determined not to repeat mistakes of the past.
"This means we need to develop a strong understanding of the issues and challenges faced by veteran and defence communities including their families," he said in a statement.
Three studies will be conducted, funded by $1.2 million from Defence and $3.8 million from the Department of Veterans Affairs.
The first study will examine the mental, physical and social health status of serving and former personnel.
The second will assess the impact of combat on those who deployed to the Middle East between 2010 and 2012.
Both will be conducted by the Centre for Traumatic Stress Studies at the University of Adelaide.
Study three will investigate the impact of military service on the health and wellbeing of the families of serving and ex-serving personnel. It will be conducted by the Australian Institute of Family Studies.
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