Australia should have spent less on Anzac centenary commemorations and more on supporting its living veterans, Senator Jacqui Lambie says.
The Commonwealth is reported to have spent some $400 million marking 100 years since forces landed at Gallipoli and while Senator Lambie concedes it was an important event, she said the money could have been better directed.
"We did overspend that money and some of that money could have been better placed for the homeless veterans and the veterans," she told reporters in Hobart on Friday.
Senator Lambie recounted the story of a soldier suffering post traumatic stress disorder who was refused treatment at a facility where half the beds are empty because there isn't enough funding.
In partnership with fellow independent senator Nick Xenophon, Senator Lambie on Friday announced plans for a reform of defence entitlements through the Department of Veterans Affairs.
"We're still not doing anything about the veterans' suicide rate and the attempted suicide rate and the homelessness," she said.
"I will respect the dead ... but myself and Nick will continue to fight like hell for the living."
Senator Xenophon said the federal government set aside some $325 million "or more" for Anzac Day 2015, to fund "appropriate" commemorations.
"I'm not quibbling with that amount but I am concerned that just as it's appropriate for us to honour the fallen, we need to make sure that we help those who are broken and living, get back on their feet," he said, standing beside Senator Lambie.
"If we can find hundreds of millions of dollars for the Anzac commemoration ... I am concerned there doesn't seem to be enough money for veterans who are suffering quite deeply."
The pair also called for a royal commission into defence force abuse, announcing that within months they will put draft legislation to the Senate.
The government's Defence Abuse Response Taskforce had started to address some problems but more needs to be done, Senator Lambie said.
"The victims out there, they don't want a small amount of (compensation) they want their predators held responsible for their actions and some of those predators are still serving in our defence force," she said.