Veterans Affairs Minister Dan Tehan insists there are fewer sex changes required in military ranks than the national average because of stringent screening in recruitment.
Mr Tehan has weighed in on the debate about whether defence personnel with gender dysphoria should have access to taxpayer-funded sex changes.
There are reports the government had chipped in for 27 operations in the past five years at a cost of $1 million.
Government MP Andrew Hastie, a former special forces soldier, and One Nation leader Pauline Hanson are among those who have raised concerns.
Mr Tehan backed Defence Minister Marise Payne's justification that medical treatment should be granted for any medical condition as directed by doctors.
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He argued here were strict recruiting criteria in the military and people can be rejected for things such as shoulder injuries or acne.
"That's why we're below the national average when it comes to people seeking treatment for (gender dysphoria because of the screening process)," he told Sky News.
