"This culture of respect for our service men and women is one of the reasons the Invictus Games have been such a success in Australia. We get it," Mr Morrison said on Friday.
"To further enable this culture of respect we are introducing a veterans card and pin that will enable businesses to show their appreciation by offering special discounts and offers for our veterans."
The details of the card will be worked through with state and territory governments and businesses.
It will be separate to the Department of Veterans' Affairs health cards, but will be similar to the approach adopted by Canada and the US.
Already Woolworths, Coles, Kmart, Bunnings, Target, NRMA and Clubs Australia have signed up, while Westpac has expressed support for the idea.
At present, many businesses and services find it hard to identify who is a veteran, with the problem most acute in states such as NSW and Queensland, each of which are home to more than 80,000 veterans.
The government is also extending funding to the Kookaburra Kids Defence Program, which delivers camps, activity days and family picnics for the children of ex-serving ADF members who are experiencing mental health issues due to their service.
As well, $6.7 million will go towards specialist veterans accommodation at the Concord Repatriation Hospital in Sydney.
It will be named Fussell House after Lieutenant Michael Fussell who was serving with the Special Operations Task Group in Afghanistan at the time he was killed in action when he stood on an insurgent bomb.