The Defence Force Ombudsman is reviewing past decisions made on recommendations for the abuse reparation scheme after Federal Court action was launched against it.
More than 50 cases out of 169 previous assessments to date have been overturned, with a fresh suggestion to Defence for compensation.
Individuals could be paid up to a maximum of $50,000 under the scheme.
One victim said she felt the trauma she experienced had finally been acknowledged. (Lukas Coch/AAP PHOTOS)
A spokesperson for the ombudsman said the final decision of whether to make a reparation payment lay with Defence.
Army veteran Mindy Mackay said her experience of sexual harassment and assault in Jordan while she was studying with the Australian Defence Force School of Languages in 2008, was downplayed by the military.
She also was harassed by her superiors for supporting a fellow soldier in their sexual assault case which went to trial in a civilian court.
Ms Mackay is part of a group of people who have been recommended for a payment after her previous application was rejected.
"I felt disposable and worthless," she said.
"I gaslit myself and thought maybe it wasn't that bad, after all, maybe I was imagining it to be worse than it actually was."
Ms Mackay said receiving the letter was an acknowledgement of the trauma she had experienced.
"I read it and just felt huge relief, it was the validation I was seeking when I made the complaint," she said.
"But I'm just worried about all the people who were failed."
The vast majority of people coming forward with complaints of abuse are no longer serving in the ADF (Darren England/AAP PHOTOS)
In a letter to Ms Mackay, the ombudsman said it may not have adequately considered the psychological impact of the abuse beforehand.
The Defence Reparation Scheme was open to reports from December 2016 until June 2022, with final lodgement of completed applications accepted until June 2023.
The majority of reports received by the ombudsman are from veterans, with 80 per cent of people coming forward with complaints of abuse no longer serving in the ADF.
The Royal Commission into Defence and Veteran Suicide which handed down its final report last week, recommended the federal government set up an independent inquiry into sexual violence in the military.
Speaking ahead of its release, chair Nick Kaldas said he was disappointed the ombudsman didn't get it right the first time.
Nick Kaldas says the Australian Defence Force has to do better in the future to protect victims. (Lukas Coch/AAP PHOTOS)
"It really damages people with that sense of unfairness when you've been treated so badly ... you're shoved aside, perhaps ended your career, perhaps face the weaponisation of the complaint system against you because you complained," he told AAP.
"All of these things have taken a huge toll on literally thousands of people over the last couple of decades. I think we have to do better."
In a statement, the Defence department said the ombudsman was responsible for administering the scheme.
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