Ms Gillard was launching the Defence Families Pin, which she said was recognition of the extra burden carried by family of servicemen and women.
She was addressing families of ADF members on Saturday on the flight deck of the HMAS Darwin, which is docked in Sydney.
"I'm here as prime minister to say thank you for your service too," Ms Gillard said.
"We don't take you for granted. We don't forget that you serve our nation as well and today we are going to embark on recognising that service for you.
"We understand that there is an extra burden on you, and as a nation we want to acknowledge that through awarding you this pin."
Ms Gillard said the idea of the Defence Families Pin was picked up by Labor MP Deb O'Neill after a suggestion from the parents of an ADF serviceman.
The prime minister said the recent "tense operational tempo" for Australian forces overseas meant many families had already seen their loved ones go overseas six or seven times.
The families of ADF members "wouldn't be human" if they weren't worrying about their loved ones every minute of the day, she said.
Meanwhile they had to juggle the daily stresses and strains of family life, and the pin was a way to remind other Australians to show their solidarity with these families.
"In the wearing of this pin we want other Australian community members to say to you we realise that you're a family that is in this particular circumstance, and if there is anything we can do to help to show our solidarity or support as a community, then we are prepared to do it," Ms Gillard said.
